Jun 14, 2022
The E-Commerce industry has advanced considerably to where it is now in terms of technology and innovation. The domain has managed to grow manifold in giving consumers more than what they expected from the retail sector several years ago, from adopting omnichannel retail to including AR/VR and IoT technologies to improve their customers’ experience. However, even amidst all of these innovations and disruptions, there were still some inherent challenges. Data security, frictionless payments, and other issues are all issues that need to be addressed. These requirements were ideal for the retail and eCommerce industries to adopt Blockchain technology. Let’s look at how Blockchain in B2B is not only a necessity for the retail sector but also a path to profitable B2B retail.
Why does the Retail industry need Blockchain?
In 2018, the global Blockchain in the retail market was worth $83 million, and it is expected to grow to $11.18 billion by 2026, at an 84.6% CAGR from 2019 to 2026. Here are some of the issues faced by the Retail Industry that Blockchain technology implementation can mitigate:
Operational Efficiency is Lower: When it comes to managing business operations in an eCommerce market where products are received from multiple locations, there are numerous differences. It isn’t easy to streamline various stakeholders, such as logistics and payment partners. Another issue arises when integration with multiple management systems and overall supply chain workflows must be established.
Payments Without Transparency: There is a lot of a grey area in B2B eCommerce, especially at the global level, where a service provider and their customers encounter. Handling fees and other fees, such as authorization, are two of the most common. The retailers usually combine these overhead costs into one and do not explain them.
Data Security Without Dependence: Consumer data has been the subject of several investigations due to sloppy data storage practices. Whether the data is saved on the cloud or locally, there is always the possibility that hackers will misuse it.
Omni-Channel Practice Is Inefficient: While the advantages of omnichannel retail are numerous, there are several flaws in the system when it is put to practical use. Customers and retailers rarely have real-time access to the serial number of a product and other product details such as payment status, order processing status, real-time order geo-location, and delivery status.
Benefits of adopting Blockchain in the Retail Industry
Blockchain applications go beyond making payments more frictionless and transparent in the retail industry. Advantages of Blockchain technology implementation in the B2B retail sector are:
Making Supply Chain Streamlined and Less Prone to Counterfeits: In a B2B eCommerce environment, information movement among third and fourth parties can complicate transactions, resulting in delayed supplier payments and disrupted reconciliation processes. The immutability of Blockchain in retail can result in fast, secured, and audited B2B interactions between sellers, buyers, and logistics providers. Product provenance is checked using Blockchain in supply chain retail. It becomes straightforward for stakeholders to verify the product’s origin, eliminating any possibility of receiving a counterfeit product.
Smart Contracts for Streamlining Processes: Customers can use smart contracts in Blockchain to lay out their project, including all necessary details such as complexities, payment plans, and delivery timelines. The retailers then compete to offer the various project elements with their unique offerings. The beauty of smart contracts in Blockchain is that retailers and customers cannot back out of the agreed-upon terms and conditions, or they will be unable to receive the agreed-upon amount.
Customer Loyalty Programs: The current loyalty programs are incredibly vulnerable to abuse and fraud, necessitating extra effort on retailers to ensure they are adequately maintained. These issues are addressed by Blockchain and eCommerce’s new method of handling, securing, and decentralizing loyalty program data. The technology facilitates the creation and transmission of points across programs and retailers. Retailers can securely track loyalty programs transparently and easily using the time-stamped, tamper-proof database.
Elimination of Financial Inefficiencies: There are numerous advantages to combining Blockchain and B2B payments in a B2B eCommerce setup –
o Preventing fraud
o Settlements made quickly
o Payments without friction
Transaction Costs are Reduced: Blockchain technology allows a consumer and seller to transact directly with each other without using a transaction medium or a third-party handler. Using Blockchain in inventory management is the best solution for companies.
Blockchain Use Cases in the Retail Industry:
Efficient Sales Processes: Relationships and responsibilities are at the heart of B2B sales processes, and trust is essential for success. According to reports, the majority of businesses, up to 50%, either do not check the credit history of other businesses or use insecure payment methods. This is where Blockchain technology can help speed up forming trustworthy relationships while saving money. It is now possible to formulate a trusted and reliable system for B2B retail by implementing Blockchain, eventually leading to more leads and sales opportunities.
Efficient Inventory Management: Retailers must use proper inventory management to improve their overall efficiency. Blockchain Inventory Management solutions can help companies manage their inventories more efficiently in the retail industry. It will also save them significant money by automating product shortages or surpluses based on real-time consumer demand. We believe it is an excellent application for the retail industry.
Counterfeiting Prevention: Blockchain in B2B can aid in the prevention of commodities fraud and counterfeiting. Retailers can use blockchain technology to monitor their items from producers for fraud prevention, ensuring that they receive the genuine product every time.
Smart Contract Management: Smart contract in blockchain development is one of the most promising supply chain applications. In reality, many retail establishments could rely on smart methods to ensure payment. They can consider making a payment guarantee that takes only a few minutes to complete. As a result, suppliers will be motivated to complete the shipment ahead of the schedule.
Customer Loyalty Programs: Blockchain can also help loyalty programs. Many retailers now have loyalty programs in place that enable them to communicate with a much broader audience and keep their existing customers satisfied with their products.
MSRvantage’s capabilities in Retail Solutions
MSRvantage Blockchain solves all of the problems that retailers and e-commerce face by enabling fast transactions, immutable services, and verifiable delivery tracking without the need for human intervention. As a result of lower costs, faster payments, increased transparency, and enhanced security, MSRvantage blockchain provides retailers with a next-generation system that adds value to the business. With features offered by the Blockchain in supply chain management, removing cybersecurity threats, identifying counterfeit goods and frauds, etc. MSRVantage is the best-in-class solution for retail businesses.
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