Understanding bitcoin as an E-commerce solution is essential in the fast paced digital age of sales. Managing an E-commerce website can be a challenging task, and Bitcoin is a solution to many difficulties site owners may face. Much of the hesitation that site owners have regarding using Bitcoin stems from not fully understanding the tools in place to help facilitate accepting transactions.
Accepting payment from around the world
For any E-commerce site looking to create a global presence, it can be difficult using traditional payment methods. Third party payment processors such as PayPal blocking transactions between certain areas of the world and the ability to freeze funds and accounts can create quite a dilemma for any aspiring business. Not only that, but Paypal charges as high as 3.9% +.30USD per international transaction. For sellers with low margins, using processors such as PayPal simply isn't profitable. With Bitcoin, transactions are confirmed on average between 15-45 minutes anywhere in the world, with fees between 1-2%- around half of what PayPal charges. Not only that, but since transactions are peer-to-peer, no government or company can halt payment or freeze funds.
Protection against fraudulent chargebacks
Dealing with fraud is a major obstacle for both brick mortar stores and online retailers. Most major payment processors automatically side with the consumer regarding chargebacks- allowing fraudulent chargebacks to be difficult to deal with for small businesses. Transactions are irreversible with Bitcoin, meaning that sellers are automatically protected against unwarranted claims.
A step ahead of competition
Competition in E-commerce continues to grow each year. Any strategy that can give a company a distinct advantage over their competition should be embraced. What better way to get an edge over your competition than to accept a payment method that they don't? By accepting bitcoin, you are giving yourself a clear advantage over similar companies not utilizing it. And with all of the other benefits, Bitcoin just seems to make sense.
How can you get started? There are a variety of companies focused on providing easy and effective methods businesses can use to accept bitcoin- both online and POS (point of sale.) Many payment tools charge nothing to accept bitcoin. Some even provide the option of automatically exchanging the bitcoin into your local currency for you, so that you can reduce exchange risk, for a small fee.
Did you enjoy reading Understanding Bitcoin as an E-Commerce Solution? What are your thoughts? Leave a comment or contact us.