Egoras- An incentivized, blockchain-based, Recommerce/Resale Marketplace
Egoras is a blockchain based recommerce/resale marketplace that allows sellers and buyers of used items to exchange value quickly without any third party that can look over or manipulate transactions. Egoras combines concepts from re-commerce with lessons learned from building cryptocurrencies. An important key to inspiring participation in any marketplace, currency or free-market economy is a fair accounting system that consistently reflects each person’s contribution. Egoras is the first cryptocurrency that attempts to accurately and transparently reward an unbounded number of individuals who creates value in its marketplace.
SCOPE OF THE PROBLEM
When we first started to analyze reasons behind the difficulties of global adoption of a re-commerce marketplace, we looked for possible solutions and then wondered who else would benefit from the approach in which we would take to address the problem. We then incorporated those parties to synthesize new problem scope and tried to find the solution to the newly defined problem. As in any of those exploratory endeavours, one must not forget to limit the problem scope to a minimum, and to look for solutions providing maximum benefits to parties involved.
Barriers to Entry :
It has become more and more difficult to just jump on marketplaces like Amazon and start selling. As the platform continues to take on new sellers who don’t always follow the rules, Amazon, for example, had to become more strict in allowing who can sell, what can be sold, and how.
Sellers must receive approval to sell clothing, shoes, handbags, automotive items, and many more types of inventory. The list of categories requiring approval keeps growing. And it isn’t that easy to be approved.
Delay in payment
When you sell an item on most big marketplaces, payment is made by direct deposit to your checking account every 14 days, unless you’re one of the lucky few who still has a legacy account that allows you to request payments as often as every 24 hours.
Some marketplaces like amazon do not accept PayPal from buyers. That can be a problem if you are using the revenue from your sales on other platforms to purchase more inventories to sell.
Competition is Brutal
Most sellers don’t sell their own one-of-a-kind items. They simply resell items they’ve purchased from wholesalers or suppliers in bulk, just like a retail gift or other shops. The issue is, if you can buy it in bulk, then many other people can too, which creates a large degree of competition for the same items.
This has led to many sellers creating unique products with the help of companies that will put a seller’s brand-name on an existing product and make small customizations to the product such as minor colour, fabric or formulation changes. These are known as private-label or white-label products, and they’re a halfway point between reselling existing products and creating your own from scratch.
Some marketplaces have also experimented with different tools to help sellers beat the competition in various ways, by adding the ability to automatically reprice your products, clear out aged inventory, and optimize your listings with keywords.
Sellers who grow their bottom-line profits year-over-year faster than their top-line sales tend to fare better. With many sellers using re-pricing software to automatically change their prices to stay competitive, as soon as one seller out-prices another, it sets off all other sellers’ re-pricers, and a downward pricing spiral begins. The only winners are the buyer who gets items at a very low cost.
Non-Transparent Marketplace Sanctions
The arrival of best match search placement and detailed seller ratings in recent years has led to a shadowy set of rules and criteria by which most marketplaces seems to make some sellers effectively disappear or suffer — by moving sell orders to the absolute end of search results, preventing them from appearing on category pages for common items or even in search results, limiting access to customer service for sellers that previously had enhanced access, changing the buyer protection calculation based on past performance, and so on.
Yes, difficult customers exist everywhere, but on these marketplaces, things are a bit more complicated than they are for most retail venues. Most marketplace customers can’t inspect goods before purchasing, yet the range of goods to be found on these marketplace (new, used, top quality, discount import quality, recent, vintage, complete, parted out, etc.) means that customers don’t know what to expect from goods purchased in the same way that they do from items at a big box retail store. At the same time, customers’ certainty that they’re about to get a fabulous deal, the distances that are often involved between buyer and seller, and the fact that buyers can publicly leave negative feedback or poor detailed seller ratings that can sink your business.
Synthesis of the problem worth solving
The conventional eCommerce industry disrupted the way we shop & live, and blockchain is on its path to disrupt eCommerce. The implementation of blockchain technology in the eCommerce marketplace will ignite a significant shift by establishing a decentralized economy. In this post, we are going to be extensively covering how blockchain can transform the present e-commerce marketplace.
From the problems listed above, it is definitely obvious that:
· Payments Methods needs to get revamped: Blockchain witnessed its first implementation in currencies powered by its technology (like bitcoin, ethereum, and ripple). Today, cryptocurrencies are being utilized as an alternative to traditional currencies. This shift is due to the relative ease of implementation and the fact that they are decentralized. Bitcoin and other cryptocurrencies provide numerous advantages over traditional currencies which benefits the users.
· Ecommerce needs to be decentralized: Blockchain isn’t regulated by any central authority which basically implies that the buyer and seller only control blockchain operations. Thus, no third party can look over or manipulate your transactions. Blockchain currencies can’t be inflated or devalued by any bank or government, as is the case with other currencies. For instance, if the economies of a country were to collapse today, their currencies would terribly suffer which is not the case with bitcoin because geopolitics do not influence its operation.
· Users Identity needs to be protected: Cryptocurrencies based on blockchain technology don’t reveal the identities of the transacting parties. Still, these transactions are very transparent as centralized ledger stores the details and give visibility to transactions.
· Marketplaces needs to be trustless: There is no governing body which controls how a person utilizes his/her bitcoin. Regular payment methods are often imposed with several limits based on the amount and even geographical location. However, this isn’t the case with currencies like bitcoin — a Blockchain-based currency gives users absolute freedom to perform transactions without any cap on the spending limit.
· Blockchain can offer a better experience: Blockchain-based currencies are incredibly comfortable to use. Unlike traditional currencies, one doesn’t need to visit any regulatory authority to create an account. All these can be easily accomplished at the comfort of your home. Additionally, they do not levy any charges to open an account; instead, a virtual currency wallet is absolutely free.
· Transactions needs to be faster: Traditional transfers often take long, especially sending money across continents may take up to several days to accomplish. Bitcoin transfers, on the contrary, only takes up a few minutes! Most importantly, they aren’t closed at any point in time, and a transaction could be carried out at almost any point of time, in an instant.
· Fraud needs to be eliminated: Blockchain-based currencies are extremely secure to transact with. Because of peer-to-peer technology, it is tough to hack into the process and conduct fraud. Thus making it one of the safest modes of transaction.
eCommerce Marketplaces needs to be transparent: With the recent backlash that big retailers have been facing in the wake of charges of lack of transparency — this is one of the more serious concerns faced by existing eCommerce platforms. For instance, Amazon was in the news for cutting-off and even disabling a merchant’s page without any explanation. Thus, by applying blockchain technology in the eCommerce marketplace would establish a decentralized environment where any wrongdoings on the part of the business or merchant can be efficiently monitored. A transparent eCommerce marketplace also facilitates in conducting transactions in a frictionless and efficient manner.
· Security can be improved: Blockchain today can be easily deemed as one of the most secure platforms out there. The Distributed Ledger Technology or DLT which blockchain boasts, offer excellent security for online database platforms that makes it ideal for implementation in eCommerce. Also, there has been almost negligible reporting of security breaches in blockchain-powered networks. Another significant upside blockchain offers for eCommerce businesses is that blockchain-based currencies don’t exhibit personally identifiable information. Currencies like Bitcoin operate like cash in the sense that they don’t require a consumer to expose sensitive data. In fact, the customer himself authorizes a transfer from his/her own personal “wallet” to that of the recipient. The only distinguishing piece of data tied to each user’s wallet is a randomly-generated unique identifier. Since cyber-attacks and data theft has increased tenfold, there is an inevitable risk of losing customers data. Therefore, adopting blockchain is an absolute key to solving these challenges.