What is Web3 Ecommerce & Its Features | Decentralized Vs Non-Decentralized eCommerce

What is decentralized ecommerce? Example of decentralised eCommerce and its features. Decentralized Vs Non Decentralized eCommerce

Written by Niel Patel · 7 min read >
decentralized ecommerce platform

Decentralized Commerce or DeCo lets users do the transactions without any centralized control. All thanks to the blockchain, DeCo is made possible. 

Traditional E-commerce began back in the mid-90s with the evolution of the internet when marketplace like Amazon and eBay emerged. E-commerce was the need of the time. It still is, but it needs some reforms now.

What exactly web3 e-commerce platform is providing us?

How to Set Up a Metaverse Retail or Ecommerce Store?

Here, the guide will discuss Web3 Ecommerce, its features, and how it is different from non-decentralized E-commerce. 

Image Source: blockchain-council
Image Source: blockchain-council

What is Web3 E-commerce? Let’s Find Out

To understand what decentralized eCommerce is. It is really important to get what E-commerce is. 

As most E-commerce users know, it comprises electronics commerce or internet commerce, which refers to buying and selling goods and providing other services, and making payments through the medium of the internet. 

Often, E-Commerce refers to the sale of physical products online. However, it can also intercept any kind of commercial transaction that is facilitated through the internet. Yet both definitions are the same. 

In the contract, not so very contrasting, but a decentralized e-commerce website also provides goods and services and does payments online. But in a much more transparent way when compared to E-commerce. 

In the concept of Decentralized eCommerce, users can buy and sell products in p2p form. This means there is no longer a need for a broker, where users and sellers have to need intimidators to do transactions. 

For Example

Understand it in this way. Suppose a user shops through Amazon, now users do not directly contact the seller of the product. Sellers just have to offer the product, users have to buy and the rest is taken care of by Amazon. Decentralization breaks this chain and lets users and sellers contact each other and do their business independently with the needs of Amazon. 

However, that does not mean Amazon will not be there anymore. Amazon will stay, but it has to change its course. 

So DeCo allows users to register and list their products and also to become a seller or act as a seller. Not just that, it also allows buyers to see the rates and track their purchases. Decentralized e-commerce provides a much more cost-profitable way of trading for both parties involved. It is because trade is happening directly between the buyer and the seller. Web3 e-commerce websites or platforms that will ensure a genuine and smooth transaction and offer security for both parties to trade fairly.

As everyone knows the importance of E-commerce, now it’s time to see what decentralized eCommerce has to offer. it will become a convenient way to satisfy many daily needs and wants. Needless to say, e-commerce has dramatically grown at a great pace, and now its new versions of decentralized commerce are set to become the future of buying and selling goods electronically over the internet with a P2P connection. 

Maybe you like:  Amazon’s Decentralization 

The process, however, will involve merchants or retailers and platforms like Amazon, eBay, etc. but they do not act as middlemen anymore, thereby, DeCo may provide the buyer and the seller with a completely new form of trading. This brings this guide to the next point and explores the significant features of decentralized commerce. 

decentralized e commerce website
decentralized e-commerce website
FORCentralized EcommerceWeb3 Ecommerce
MeaningCentralization is the practice of keeping control of planning and decision-making with the highest management.Decentralization is the process of distributing power, accountability, and responsibility among different management levels.
InvolvesSystematic and consistent reservation of authority.Systematic dispersal of authority.
Decision-making speedSignificantly fasterComparatively slow
Communication FlowHigher feesFewer fees
Decision MakingSlowComparatively faster
AdvantageProper coordination and LeadershipSharing of burden and responsibility
Power of decision makingLies with the top management.There is shared decision-making authority.
Implemented whenInadequate control over the organizationConsiderable control over the organization
Best suited forSmall-sized organizationLarge-sized organization

Features Of Web3 eCommerce

Here are the features of decentralized commerce that are also the features of shopping online. 

Users Satisfaction

DeCo serves as an important tool to meet the basic needs of users like independence, ownership, acknowledgment, and status. The status works for both seller and the buyer. As they will be responsible for the betterment of the transaction. 

Under decentralization, every seller will perform division and attain sufficient autonomy to exercise their creative flair for different products. The same way applies to the seller also. 

Ease of Advancing

With decentralization businesses or say e-commerce stores can add expansion processes to grow these businesses without needing permission from a third party or governance. This can result in the opening of new business units in different geographical locations.

Decentralization helps the traders to unleash the fullest potential of a business and react easily to the users-specific requirements, not the middlemen.

Relief From The Brokers

Now sellers can focus more on the buyers’ levels and can do things like planning and decision making. They now can directly improve their services to the buyers through smart contracts. This relieves their workload which eventually turns for the greater good of the seller and buyers.

Control In Hands

Sellers and buyers can alter departments or delivery schedules and other important assignments with the help of smart contracts and the transparency of the blockchain. Both parties can even take disciplinary actions and recommend improvements.

Which efficiently leads to greater accuracy in supervision. Performance inspection of each decentralized unit in the trade process helps sellers and buyers in exercising adequate control.

Faster Decisions

Another important point in DeCo is ultimately decision-making done through the authenticity of the smart contract. With the help of smart contracts, both the seller and the buyer remain aware of the real scenario.

Better Communication

Compared to e-commerce where if in any scenario the users and seller have to contact each they can’t do it with the e-commerce site’s authority. It results in wasted time, more experience, and worse user commerce. But under the wider span of management, and decentralization, communication has to go through a few levels of hierarchy. This makes communication more efficient, less complicated, and as intimate relationships develop between buyers and sellers.

Infinite Growth 

Every seller and buyer gains enough independence to exercise their creativity as a result of decentralization. In this manner, sellers can foster healthy competition among other sellers.

While discussing the benefits of DeCo, it is important to note that it allows both parties to exercise their judgment of what to buy, where to buy, what to sell, and where to sell. 

They even help to develop both management exercises and solve the succession problem, ensuring growth and continuity.

Decentralized Vs Non-Decentralized eCommerce

As native e-commerce works with social networks DeCo has opened new doors for opportunity and creativity. 


Centralized or non-decentralized e-Commerce started in the late 90s almost two decades early. It has birthed amazing stores, like Amazon, eBay, and others. 

But Deco is the present. It just does not include selling and buying off the thighs like clothes, accessories, and smartphones, but it also includes digital assets. There is the decentralized eCommerce platform that has enabled the decentralized exchange for all types of NFTs

Providing users with various opportunities such as tokenizing real and digital assets and placing them in the exchange for auction, barter, or direct sale. Which we do not find in the centralized world of e-commerce. 


Now the second thing decentralization does for the business is let them be visible among the other greatest fighters. 

Big brands truly dominate centralized e-commerce. Like if someone comes to Google and searches for a brand, they will get what they want to be listed. An instant after typing. Mostly the brands that have a good identity appear in this search and small brands didn’t even make it to the third or fourth page of google search. 

Decentralized e-commerce helps non-brand searches to appear in the searches and if a user searches for a non-brand keyword, this will bring the opportunity for many businesses to compete.


Also, decentralization is going to change the way trade happens through social media. Now every network has its strengths. Users can go to Youtube for videos, Facebook for family and friends, Instagram for images and reels, WhatsApp for texting, Twitter for news, and Pinterest for inspiration. But every time a sale happens through these platforms, it is not sellers who get the benefits. But it is the heavy margin that these platforms take from their users. However, as the result of decentralization major changes can happen and users have started seeing a glimpse of these changes from very prior. 


Let’s get down to a little more depth and talk about the disadvantages of e-commerce. There are the core disadvantages of centralized e-commerce that trigger the need for decentralization of eCommerce.

  • Huge fees for trading on trading platforms
  • Consumers breach
  • Sellers and buyers face an unfair processing process of the transaction sometimes they do not receive payments or goods. 

To all of these problems that have troubled the trading parties for several years decentralized e-commerce is the solution. As it uses the blockchain as its backbone technology which includes the use of smart contracts, and tokenization of products. The use of the blockade reduces the burden on the trading parties, including time management, risk-taking, and disarray of security. 

Decentralization helps small businesses get much-needed attention that they otherwise wouldn’t get with centralized E-commerce.   


Also, a decentralized e-commerce website can help c-commerce, creating even the content space for businesses and users. Conversational commerce occurs when people and businesses connect through chat or voice assistance with the intent to purchase goods or services. This behavior has extremely become mainstream across the globe and presents small businesses with powerful chances to engage customers in fresh ways. The benefits of e-commerce include the shorter distances, cut through in the wanting and having process.

 The benefits apply across the wide range of catalogs like fashion and beauty leading the charge. Decentralization helps the e-commerce hold on to its unique power and provides efficiency in various trading tasks. 


Most users don’t like ads and because of the decentralization of commerce, ads are set to go. 

For a long time, ads on marketplaces and publishing companies funded a significant portion of the internet. Then users more companies that sell directly: SaaS for B2B and direct-to-consumer for B2C. However, advertising remains the most effective acquisition channel for the majority of businesses.

Social media sites and e-commerce stores are now descending the value chain. They are largely ad marketplaces, but advertisements are only a means to an end. Native e-commerce features enable merchants and content producers to build businesses and sell directly on their platform, disrupting the ad space at the same time.


Another thing that E-commerce will change is the concept of lending virtual spaces. It ends the monarchy of tech giants over most of the IT industry. 

Decentralized networks, by definition, promote open development. By fostering an open development environment, networks can add services, tools, and even product lines on top of the network itself. For example, Linux is open-source and it has an ecosystem that allows anyone to improve it. Centralized networks, on the other hand, value closed source, limiting development. 

 The decentralized model is here to remain, and it can dethrone the centralized model as the predominant approach. Not only has the rise of bitcoin and other cryptocurrencies been witnessed, but some authorities are considering what the prospect of casting a vote may look like and whether the decentralized approach is viable, while the energy sector, as well as the environmental, social, and governance sectors, are also being considered for the future.

Disadvantages of Decentralization

As every technology has some type of flaws decentralized commerce is also suspected to have some. As the guide is discussing everything about it, let’s look at some of the disadvantages that it is suspected to have. 

Challenging Coordination-

The decentralized model makes it difficult to coordinate the overall activity. It does not do as strong coordination as is performed in traditional e-commerce. 

Other Factors Involved- 

In the future trade unions, market uncertainties, and government intervention may also become a part of decentralization and will make it difficult to benefit the most from decentralization.

Narrow Scope-

Decentralized e-commerce not only will widen the trading scope but also will narrow it down as well. Product lines need to run adequately to flourish the demand within the expected time. And this factor might help in the small business houses having narrow product lines. The lack of qualified people at lower levels of the organization adds to the difficulty quotient.


In decentralization, everyone takes responsibility for the better trade so they work harder to obtain all the objectives. In exchange, they must be paid more, which can be very costly for the company for both of the parties involved. 

What does DeCo mean?

The abbreviation of DeCo is Decentralized Commerce.


With a lot of advantages and a very few drawbacks, Decentralized e-commerce will alter the course of how things work in the e-commerce industry. It will bring more transparency, trust, cost effect, and time limits to the operations in the ecosystem of e-commerce. Not donut, it is and will be the further technology

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