Blockchain has been a buzzword and a popular term for the past few years. Plus, its role in various industries has been increasing nowadays. The applications of this technology have gone far beyond cryptocurrencies. Blockchain’s ability to provide transparency makes it a technology that has a positive impact on numerous sectors such as healthcare, entertainment, finance, real estate, and more. Furthermore, the idea of incorporating blockchain technology in the retail and e-commerce industry is most likely to be the next trend in the market.
In fact, there are many ways further blockchain development can power the whole market of the retail industry. In addition, this will open opportunities to maintain the whole supply chain of the retail and e-commerce industry via a distributed ledger.
Read this article thoroughly to know how blockchain technology will reframe the retail and e-commerce sectors.
Table of content
- How Blockchain Will Reframe India’s Retail and Ecommerce Sector?
- Increase transactions transparency
- Manage Data of Customers
- Optimize Inventory Management
- Streamlining Retail Sales Tax
- Product Provenance
- Final Thoughts
How Blockchain Will Reframe India’s Retail and Ecommerce Sector?
India’s e-commerce and retail market share can grow by 22% this year. According to research, there will be an increase in market size by US$ 1.8 trillion by 2030. However, to boost the market size, the adoption of blockchain technology is mandatory. Here are some advantages of the global implementation of blockchain in the retail market.
1] Increase transactions transparency
Blockchain in the retail and e-commerce sector can help out with transparency in transactions. As there is an increased demand for authenticity, blockchain technology can solve this. For this, it can directly offer customers data about merchant transactions and goods’ lifecycle and replace third-party intermediaries. In addition, blockchain technology secures digital records by allowing the orchestration of transactions. It not only replaces third-party financial services, but further blockchain development can share vital business information with the involved party in real-time. Also, this technology offers high-security protocols to the retail industry.
Additionally, it can give you the benefit of not paying extra fees to the intermediaries like banks. There are faster transactions due to the information traceability on the blockchain network. More so, this will speed up the operations of the whole retail market. The enhanced security and transparency this emerging technology provides is a plus point for the retail and e-commerce industry. This, in turn, helps in reducing fraud and cyber attacks. Take up a blockchain education class to learn more about it.
2] Manage Data of Customers
Blockchain works on securing the information of customers. Adopting this technology can give peace of mind to customers by storing their data with high privacy. May it be credit card information or address, blockchain development can help collect all the data. Furthermore, the organizations working with blockchain can store information outside their own database. The technology with the use of decentralized identity (DID) makes information secure and verifies it for further use. Additionally, this identity allows the storage of any data and links on the blockchain.
Data Protection combats fraud and allows customers to know whether they are dealing with an authentic brand. For example, customers can run a background check, transaction history, etc., while dealing with a brand. Additionally, blockchain technology has the potential to allow users to share their personal data with whoever they want. As the technology relies on private keys, it is an excellent solution to work with confidential information.
3] Optimize Inventory Management
Blockchain technology can improve inventory management and allow warehouses, retail partners, and distribution centers to connect to each other. Also, it maintains a permanent record of every activity in the network. As retail companies want to increase their efficiency, immutable inventory data can be a benefit to them. Through real-time updates on inventory,
retail businesses will know about the highest to lowest selling goods, goods stock information, and other relevant details. As a result, this will help in solving common supply and demand issues such as the shortage of products while demand is high.
Furthermore, with transparency, it is able to manage traceability and potential recalls. With a proper blockchain education, experts can place needed blockchain services.
4] Streamlining Retail Sales Tax
Blockchain helps in streamlining retail sales tax. It can record specific tax data on the shared ledger making businesses abide by their tax payments. Every retail company will have to pay tax in due time depending on the number of sales they completed in the past. Also, this will prevent any legal issues regarding tax penalties. The blockchain’s capacity to alleviate this problem makes it a wonderful solution for streamlining retail sales tax. Moreover, retailers can upload their documents on the network to prove they are up to tax compliance.
5] Product Provenance
Blockchain, along with IoT solutions, can provide product provenance and traceability. With the current complex supply chain framework, it is difficult to establish product provenance. Blockchain validates the history of a specific product, such as what batch it belongs to, its serial number, and others. However, it is still in its developing stage. But after a few years, blockchain would possibly handle all the supply-chain complexity in a transparent and immutable way.
A blockchain expert can help you understand how blockchain records and monitors a product’s data effectively. This way, you’ll learn how to use blockchain to monitor the authenticity of products by applying product provenance capabilities.
Blockchain technology saves time and money by automating the retail and e-commerce industry. Plus, it solves real-time problems by addressing the new challenges the industry is facing. As the world steps out into the digital Era, blockchain technology is becoming an integral part. Furthermore, it can keep customers and merchants from causing any malicious activity. We believe blockchain has great use cases for the retail industry. If you want more information on this, become a part of this decentralization culture. With BLOCKCHAIN COUNCIL, you can apply principles of this emerging technology while working in renowned firms. Take a blockchain online course and become a certified blockchain expert!