How will blockchain change retail business: top 5 options

Blockchain will change retail in five ways

blockchain in retail

How will blockchain change retail business: top 5 options. Source: unsplash.com

We learned recently what blockchain is and how it works. However, now it’s time to find out how it will affect the retail sector.

1. Accuracy

blockchain in retail

With this technology, it is now possible to see precise information about the product you buy. For instance, if you purchased a lemon pie, the blockchain data would tell you where and when this pie was baked, and you can even find out the name of the baker who baked it, or the chief baker/supervisor’s name who assured the quality control and approved the product. Moreover, you can even track all the pie’s ingredients, like flour, eggs, lemon, etc. This means you can know for sure what components the confectionery/bakery company has used (e.g., if the bakery purchases their lemons from Fresh Fruits company, you’ll easily find this information).

Blockchain takes the merchant-customer relationship to a new level.

2. Authenticity

Customers are always concerned about the authenticity of the luxury brands they buy. Especially when they buy such things as made-to-measure couture from a fashion house’s licensed store, or when they purchase items at a surprisingly low price. However, with blockchain technology purchasers will be able to track the data of the products they buy, allowing them to see exactly what they are going to purchase (genuine brand item, or cheap knockoff).

3. Logistics

blockchain in retail

Most customers are eager to track the parcels of the goods they’ve bought. Now it becomes much easier to do this, as blockchain technology brings new opportunities. Customers can now find detailed and accurate information about the journey of every product as it is possible to find out where the ordered items are located at this precise minute.

This also applies to the monitoring of health and safety requirements. It can be easily implemented for use-by dates and storage condition control systems. The inspection body can track the origins of a particular product along with its conditions of transport and storage, which helps to detect and eliminate expired or contaminated goods.

4. Payments and e-commerce

blockchain in retail

Initially, blockchain has been used for transaction tracking (related to cryptocurrencies) and ownership establishment. Thus, using Bitcoin, for example, we can clearly see that it is possible to create a secure and trusted system.

Some people think that blockchain will be used just to ease the acceptance of crypto payments in the e-commerce and retail sectors. However, that’s only partially correct. This technology will undoubtedly ease the acceptance of cryptocurrencies, but it will also facilitate the returns and refunds process due to the creation of digital record mechanisms. Moreover, using the example of ownership will help track the onward selling of stolen items, (especially large purchases).

Many large firms worldwide already use this technology. Online travel company Expedia, for example, already accepts Bitcoin as a means of payment for hotels. E-commerce giant Shopify accepts bitcoin too.

5. Proof of ownership

blockchain in retail

Now that we’ve moved on to proof of ownership, let’s talk about it. The blockchain is really good at crime and counterfeiting prevention, but that’s not all. This technology can give you even more, and it is proof of origin that we are talking about here. People will be able to see clearly who made and who owned a particular item, which will increase its value and make purchasers aware of exactly what they are buying.

This technology may be applicable to different sectors and branches of human activity. It can be useful, for instance, in the dating of antiquities, knowing an item’s history, and monitoring the components and origins of previously owned products.

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