Blockchain in Retail | Know How Blockchain can Transform the Retail Industry
The advancement in technology can never be denied. The technology of blockchain is no longer new. Blockchain development for retail is gaining popularity with each passing day. And this concept is adopted by countless companies for several purposes.
Currently, this technology is used by the retail sectors to fight challenges like counterfeit products, channel assessment of partners, management of inventory, and many others. Several reputed companies are utilizing blockchain in their retail operation.
This article will describe how blockchain can transform the retail industry.
Role in the retail sector:
The technology incorporated with blockchain serves as a distributed ledger. And it makes genuine records. And these records cannot be tampered with. This leads to transparency and automation of multiple processes. This further results in the deduction of operational costs.
The fact is that the high potential of this technology can lead to the transformation of the retail sector through the management of inventory systems, deduction of overheads, and supply chain management. The possibilities become limitless with the effective implementation of blockchain solutions for eCommerce.
Minimize circulation of counterfeit product:
Changing of hands and heavy movement in the industry results in counterfeit goods. And authenticity confirmation of the goods becomes difficult for the retailers. Scannable and recordable unique tracking labels or codes can be used to overcome this problem.
Then, it can be connected to blockchain to keep the genuineness intact. Initiatives like ‘Bean to Cup’ can be incorporated with blockchain technology to prove the authenticity of the product of the retailer.
Competitive edge:
Online marketplaces like Amazon are providing still competition, and these are becoming the greatest challenges for the retail sector. And thus, to counterattack this problem, several companies are making use of blockchain in retail market.
This technology can be used for evaluating its potential business partners’ worth. Alongside this, many companies are expanding their horizon by utilizing it for developing strategic partnerships with traditional media houses. And similarly, other industries can tap on eCommerce’s potential by using and implementing blockchain technology.
Track inventories:
For keeping track of both perishable and non-perishable goods, retail giants are used while abiding by the applicable regulations. For example, a department of agriculture from a country has some of its specific guidelines that must be followed while storing juices and meats for any commercial purpose. Just like this, there are several other guidelines.
But without a stable blockchain in retail infrastructure, it will become too difficult to follow the guidelines. Thus, to be on the safer side, it is always a great idea to implement blockchain for tracking your inventories. It not only helps to cooperate with guidelines but reduces wastage as well. Moreover, it is a perfect sales strategy for moving the goods with a low shelf file.
Know from where your products have arrived:
Right now, the millennials dominate the market. This generation demands evidence for the service provider’s or seller’s every claim. So, if you sell something, then you will need to prove it to your customers.
But this kind of transparency is possible by using blockchain in the retail industry. This is because few companies source products from faraway places or via suppliers. There is the involvement of both movement and exchange of goods in this process.
Traveling long distances and changing the hands of goods can increase the chance of counterfeit goods getting in. Overcoming this problem is possible through blockchain applications for retail because it can make the product’s decentralized record while the product moves from the manufacturer to the customer.
Design effective loyalty programs:
The retail sector increases its stature in customer loyalty. It is further tested by the extremely competitive eCommerce marketplaces. Thus, it becomes essential for retail businesses to craft and bring out efficient customer loyalty programs. But scalability and transparency are the two major challenges faced by retailers while crafting a robust loyalty program.
Having blockchain technology in retail can solve this issue. It enables the companies to reward the customers via cryptocurrencies or traditional point-based systems. And it is probably the best possible way to improve customer retention and customer loyalty as well.
Reduced overheads:
Blockchain technology is highly beneficial. But, the best thing about it is that its deployment helps you to cut back on resources. And thus, it enables you to keep track of things and rely more on a decentralized system.
However, the primary cause for the loss of revenue is human errors. Blockchain retail solutions eliminate the chances of human mismanagement and errors, which saves you from loss of revenues.
Conclusion:
In recent years, several popular companies have been making use of blockchain to manage their customer loyalty programs, inventories, supply chains, and a lot more. And companies, regardless of their size, can be benefited from using blockchain in the retail industry.
Before commencing with this technology, make sure that you have adequate knowledge. If not, seek expert help.
