The pace at which retailing has advanced over the past few decades is incredible. Now one can buy or sell a product at the press of a button, without the need of visiting a brand’s outlet. Due to advancements in technology, many sections of the b2b retail sector have shifted online. So, marketers must keep in check of customer trends to adapt to their marketing strategies.
At first, blockchain technology was limited to the financial sector, but now its use is spreading even in the retail sector. It’s providing a range of benefits such as smooth transactions, an undisturbed supply chain, ideal data security, enhanced digital marketing strategies etc.
A market research report by Allied Market Research stated that the global retail market size of blockchain was valued at $83 million in 2018 and is expected to cross $11.18 billion by 2026.
With the use of blockchain, the commerce sector is suitably transforming its processes. Below are a couple of use cases of blockchain in this evolving sector.
1.Protection from Impacts of Tax Duties
In 2018, the US Supreme Court pointed out that the absence of online sales tax cost them a whopping amount of $44 billion annually. It has given the verdict to all the states to collect online sales tax. Charges are levied on those whose tax dues exceed $10,000.
Blockchain eliminates tax obligations by allowing b2b groups to share their transaction records with tax collectors. Chances of fraud become very low due to the use of digital receipts. So, businesses can easily gain tax refunds on their B2B trade sales.
2.Procurement Management
The use of blockchain technology in procurement processes can help representatives collect essential product data such as price, location, license, etc. Such data helps determine whether the b2b retail companies are using a legitimate supply chain.
Otherwise, third party companies that participate in the eCommerce sector collect such information, which complicates the sales process, increasing the time required for closing deals with suppliers.
One advantage of blockchain in eCommerce is that reviewed and authorized B2B co operations can be established quickly between marketers, purchasers, and logistics providers. Another advantage is that it enhances the usage of B2B integrated technologies such as XML, EDI, or API based B2B by increasing their visibility to members for data flows and sales.
3.Data Protection
Several stages that begin from collecting supplier, product, and client information involve storing sensitive data. Without such information, a b2b retail firm may not be able to take the right decision. However, many marketers and clients fear that such information may end up in the wrong hands. Clients feel more comfortable subscribing to online brands recommended by their trusted dealers.
Servers that store such data are at risk of being attacked by hackers. According to Cybint, 95% of cybersecurity issues occur due to human error. Such challenges can create various issues in the long run and may damage the reputation of your brand.
As blockchain technology uses a decentralized system, the chances of cyberattacks drop significantly. It distributes data onto many nodes rather than storing it on servers. The decentralized nature of the technology makes it difficult for hackers to attack any node. On top of that, blockchain isn’t tied down to any central authority such as a bank or a government, making it completely independent. In short, it enables a faster and more secure way of facilitating online transactions.
**4.Higher Transparency And Smooth Payments **
The integration of blockchain technology in B2B payments offers various benefits, most notable being swift transactions. As the payments quickly reach the retailer, it speeds up the supply chain management and allows them to dispatch orders efficiently. When customers receive their orders quickly, it boosts satisfaction rates and establishes trust between the brand and customer. It uplifts the brand’s image in their eyes and boosts brand loyalty.
5.Authentic Loyalty Programs
Rewarding loyal customers is a tactic that is widely being implemented by many online retailers. It helps elevate customer retention and engagement and allows businesses to re-target ad campaigns for existing customers. Reward programs make customers feel appreciated and special as it shows that they have a lasting relationship with the brand. However, with the influx in the rate of cybercrime activities, these loyalty programs have also been compromised by hackers.
Naturally, B2B companies need to address these issues to remain profitable in the market sternly, and blockchain can play a key role in helping them secure their defenses. By incorporating blockchain technology in their processing systems of loyalty programs, retailers can easily distribute points to customers and track all activity. They can manage and monitor the transmission of reward points through time stamps and a secured database, making it easier and safer to manage sales.
6. Handling Fake Reviews
Customer feedbacks play an essential role in defining the image of any organization. Criticisms show in what areas a business lacks, whereas positive feedbacks strengthen the reputation. However, faulty reviews also make a part of this feedbacks. These can mislead valuable prospects from interacting with your B2B market.
So, how can blockchain prevent such a crisis? It provides methods to keep track of whether the reviewer had interacted with your company or not. It collects measurable data and stores it in a block, which connects with a chain of blocks that contain similar information.
Before the block is connected, a group of computers confirms whether the data entered is true. Once approved, the data is no longer modifiable. Hence it is secured. Blockchain is useful for making a digital map of visitors who interact with your B2B eCommerce platform.
Wrapping Up
The advancements in technology are revolutionizing how the retail sector operates. Blockchain, an amazing discovery, is making its way into implementation in this important sector. Its decentralized mechanism, its allowing businesses to manage their payment systems securely. Moreover, it’s enabling retailers to showcase their best products, streamline checkout procedures and reduce the chances of fraud. The demands for this technology rise as more use cases are revealed going into the new year.
