Updated at 2021-01-23 07:44:51 UTC
Global spending on Blockchain solutions is expected to grow from 1.5 billion in 2018 to an estimated 11.7 billion by 2022.- According to Statista
Blockchain, which originated as the underlying technology of Bitcoin and other cryptocurrencies, is becoming multiple. It's disrupting a number of industries in addition to finance, and companies are tapping into its potential.
In addition to supporting financial transactions, Blockchain enables companies to improve their brand-customer relationship, reduce counterfeits with improved traceability, minimize overhead costs, etc. In the later segment, we will discuss how this versatile technology can revolutionize the retail sector. improve processes, tasks, payments, interaction with the client or more.
1. Management and transparency of the supply chain
Supply chains are complex, full of interconnectivity and riddled with inefficiency. Depending on a company and product type, supply chains can span multiple stages, geographic areas can have multiple entities, invoices, and payments. As the chain grows in size, it becomes difficult to keep track of all the elements involved (organizations, people, departments, resources, etc.). This lack of transparency in the chain leads to problems such as overhead costs, altered profit margin, and counterfeiting of goods.
To overcome these limitations and optimize the supply chain, Blockchain can help. In essence, Blockchain is a distributed database ledger that operates over a network of nodes. The immutable chain of records (in cryptographic format) that you create enables retailers to authenticate and validate transactions. From supplier, distributor to customer, the entire product cycle cycle can be traced.
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2. Avoid fraud and counterfeit products
Every year, retailers lose billions to theft, fraud, and human error. The cost of fraud and counterfeiting is not only limited to finances, but it also dishonors the value and reputation of a brand in the marketplace and among its customers.
For customers :
By using blockchain, retailers can improve customer-brand relationship by customers with indisputable proof of the provenance and authenticity of their products at every step of the supply chain. That customers can track the authenticity of the products they are buying can help them make a safe investment in them.
Blockchain can help track shipments and validate them. You can provide a product history with real-time information on who handled it, where it has been, and when. Tracking the history of a product results in fewer items being stolen, lost, or damaged.
3. Introduce smart payment methods
Blockchain has been widely known and accepted as a reliable mode for financial transactions. With Blockchain used for payments, retailers can:
Accept cryptocurrency payment, which also brings the advantage of micropayments and cross-border payments. E-commerce platforms can integrate their applications to accept cryptocurrencies, making payment options more flexible and secure. This is useful especially for e-retailers selling globally as it eliminates the hassles of multi-currency acceptance.
Cryptocurrency financial exchanges can help keep a record of all transactions made, which can ultimately streamline returns and refunds.
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Smart Contracts, one of the most popular Blockchain applications, can be used for instant payments, automated refunds, and paperless contracts with merchants, suppliers, distributors, and other stakeholders included in the product cycle.
4. Protect customer data
Customers share a large amount of data with digital platforms. This data can range from personal data, health data to bank details. While companies store this customer data in an isolated database, it eventually becomes a single point of failure. Using Blockchain, customer information can be stored in a single, decentralized, unhackable ledger. This data is accessible only to those who have the cryptographic private key.
Do you want Blockchain to support your retail business?
The financial sector accounted for more than 60% of the blockchain market value worldwide in 2018, but the technology has spread to almost every industry, from healthcare to retail.
Now that you know about the different ways Blockchain technology can benefit
When you start your retail business, it's time to make the most of it. To learn about Blockchain applications for your business, schedule a free 30 minute consultation with our Blockchain expert.
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