Block chain technology can offer massive opportunities in retail, especially during this pandemic crisis. Physical retail stores are taking a backseat owing to emergency lockdown levied upon states across the world. And online retail has picked up a greater momentum meeting a massive surge in demands from varied customers. And this onus of online retailing, as well as the already existing stores, too, does face some unavoidable challenges from time to time. Selling products, opening new stores, keeping customers happy, supple-chain, etc. lead to mismanagement. To avoid all these issues, a retail company (offline & online, both) can avail of Block chain benefits if properly planned and executed. This means the retail industry should adopt this digital technology right from the inception of their businesses across domains. Blockchain technology assures accuracy, reliability, quality tracking, sustainability facilitating a smooth management process in the entire ecosystem. Let’s see the top use cases of Blockchain in the retail industry.
1. Accurate Inventory Management
Accuracy is the prime concern when managing inventory in a retail store. Proper inventory management can only increase efficiency in a retail company. The very inventory management helps keep tracking of records of product information such as manufacturing and expiry dates, MRP, consumer’s interest and requirement, etc. Blockchain technology helps increase efficiency as well as accuracy aspects towards managing inventory. The digital tool, Blockchain, can automate the whole process of inventory management, accurately automating the process of product shortage and product surplus based on real-time consumer demand. This automation saves huge investment in managing costs smartly.
2. Managing Customer Identity
A great number of retail companies adopt a typical networking model, i.e. client-server networking model, and this seems to be very vulnerable, as it becomes easy for hackers, unwanted people to manipulate customers’ data, like, accessing consumer’s credit card or debit card information, and bank account detail. This violates customers’ privacy and the loss of sensitive data. Blockchain helps deal with this problem by securing customers’ data in the retail sector. Blockchain technology can provide systematic, authentication processes throughout the system, thereby storing data and the related information in immutable storage! It means, there is no third-party involvement and access to the network concerned. Only the related customers can have access to their data, nobody else.
3. Cryptocurrency for Payment
Blockchain has a great use case for the retail industry in the form of Cryptocurrency. The Crypto payment method is substantially picking the retail industry. The cryptocurrency markets are gradually attracting different countries to work on some central bank digital currencies, and that model is practically a cryptocurrency, a crypto version of flat money! Blockchain usage facilitates retail companies to officially adopt this crypto version of payment for their products. This brings in transparency, a secured way of digital payment that can excite customers to pay as per the cryptosystem.
4. Streamlining Sales Tax in Retail
Blockchain helps the retail sector in the process of streamlining retail sales tax. Every year, retail companies have to pay sales taxes based on their sales or sale records. The truth is, many retailers avoid paying the taxes and adopt multiple ways to evade taxes. This is most rampant in the online retail segment. More so, most of this tax avoidance happens for online retailers. This might lead to levy felony charges against those retailers who evade sales taxes to pay. Thus, Blockchain technology solves this issue with elan, as it allows automating the process of sales tax collection, based on retailers’ total sales done, profits they made. These retailers have to upload their related documents that need to undergo a thorough, appropriate verification on the network. This way, Blockchain helps a seamless payment on time avoiding any sort of discrepancy.
5. Prevention of Fraud or Fake products
Blockchain helps the retail sector in preventing cases of fraud, counterfeit products. The retail industry had lost a massive $62billion nearly a year ago. By adopting Blockchain technology, high-end retailers can see and track their products coming from the manufacturers, ensuring they are receiving the authentic ones only each time. This way, Blockchain helps tackle the issue of fraud and counterfeit products in the retail industry.
6. Smart Contracts
Blockchain gives the retail segment a big high in the form of Smart Contracts. There is no room for the discrepancy, lengthy processes in the supply chain, like, the lack of proper maintenance, time is taken for shipment’s payment verification process, etc. The use of Smart Contracts helps retail companies to stay away from any form of tension and can expect a guarantee of payment. The process takes minutes for payment, verification, etc. thereby fulfilling shipment within the deadline. Smart Contracts also facilitate customers’ loyalty programs.
Final Thoughts
Blockchain technology can help retail in many other ways as the technology restricts any form of third-party mediator and allows only the authorized users, customers to access data and information. No doubt, the various use cases of Blockchain in the retail industry are meant for overcoming shortcomings and provide a seamless, secured platform to the end-users
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