
Blockchain in Retail
Blockchain technology may have a huge influence on the retail industry. There is nothing wrong in claiming that decentralized system is the most dynamic thing and because of it we are perceiving some substantial makeover in a retail business. At its core, the blockchain technology is mainly stimulating for its aptitude to empower better trust, openness and association across retailers that would be otherwise difficult to accomplish as much.
A market analysis proposes that the blockchain technology would influence serious acceptance by the end of 2020 and get over-all approval from customers by the end of 2025. Another article also represents that the distributed ledger technology can enhance the proficiency of procedures from 40 to 60 percent. With plenty of favors, retailers are assured to discover the range of potentials as it is their golden chance to be prominent as an industry leader.
How Blockchain is offering real benefits for retailers?
- Frictionless Payments
Till now blockchain is known for the use in transaction tracking and the technology behind different cryptocurrencies like Bitcoin and Ethereum. This decentralized technology not only help with crypto coin payments but the digitally stored records can also simplify refunding and returning procedures.
Large purchases such as house, car and other bulky items can also have tracked ownership which reduces reselling of stolen products. Global companies like Expedia- an online travel giant is already accepting Bitcoin payments for the bookings of hotels. Another example is big e-commerce platform Shopify which enable its users with Bitcoin payments.
- Trust and Reliability
Suppliers want to be more focused on from where a product has arrived and what is the procedure to make it a finished good. They were facing issues regarding the openness before serving the customers. The blockchain will offer tracing of supply chain by fully secure and paperless procedures.
If a supermarket is selling a product, for example, a pastry; the information stored on blockchain technology will not reveal only the place and time and a cook who made it, but the detailed information from the different ingredients would also be recorded. Means a retailer can assure that the sweet making company is utilizing fair-traded ingredients which have been ethically sourced and the pastry is completely fresh.
- Logistics Transparency
Tracing shipping of product would be very easy with the distributed ledger technology. Each single logistical phase of good’s journey will have information regarding who is managing it, where and when in reality that ultimately cut down loss caused by damaged products.
This can also be utilized to monitor the quality and safety of foodstuff by recording environmental conditions throughout the overall shipment journey. Plenty of food organizations are interested in exploring the blockchain technology to assure secured food supply chain that reduces wastage of food.
- Authenticity
It’s quite tough to recognize fraudulent activities which decrease sales and the value of genuine goods for creators of luxury consumer products. A peer-to-peer blockchain technology can refurbish trust by enabling consumers to scan a code stamped into a good and asses the whole history of a good, containing the chain of ownership.
Fashion brand Babyghost is partnering with Chinese Blockchain Company to offer a variety of clothes integrating NFC (Near Field Communication) tags which will be confirmed at each single point with the usage of decentralized technology.
- Proof of provenance
Retailers would use a blockchain technology for the proof of ownership. This feature proves that who finished a product, who owned a product or have a connection with particular objects/designer goods. It will upsurge their worth and assure the purchasers to distinguish amongst what they are purchasing and what they can get.
It will be helpful to get the item’s history and in materials’ tracing as well as the origin of earlier purchased goods. For self-governing retailers, this would be quite beneficial to lessen issues regarding ownership and possibly prevent copyright claims.
- Automated Customer Service
The blockchain technology-based smart contracts make customer service fully automated as it applies automatically when certain predefined conditions are satisfied. Customers will be benefited with claims without the need of documentation, court proceedings, receipts, or warranty documentation on behalf of customers.
So, the distributed smart contacts offer automation in everything without a single paper.

How blockchain technology is already disrupting some big retailers’ business?
- Walmart is receiving a number of suppliers to place food on a distributed ledger to cut wastage and enhance management as well as transparency. Blockchain-based applications are helping to track products over its supply chain from the farm to customers. Walmart also describes a “smart package” which comprise a device to record information on the blockchain technology concerning the contents of the package, its location, environmental conditions, and much more.
- Starbucks – The coffee giant has begun with a pilot system which helps in traceability of coffee from “bean to cup”. It shares real-time details throughout the journey of its coffee beans.
- Amazon – Amazon’s Blockchain Templates will enable retailers to keep a logged ledger with great safety and accuracy all over the supply chain. These details help organizations to cut shortages of products, track the source of each single item all the way to a consumer, cut logistical expenses & time, and have an accurate open ledger.
- Carrefour – The French supermarket chain is utilizing blockchain to record Quality Line of chickens. Each product’s label will have a QR Code through which customers can scan with their smartphones. A customer can check out where & how animals were nurtured, farmer’s name, type of feed used, any treatments, quality labels, and where they were thrashed.
Conclusion
As traditional retailers or as a born-digital rival are searching methods to contend more efficiently in today’s evolving world, blockchain’s peer-to-peer technology offers potentials to boost functional proficiency and cut out costs. Retailers have to involve in the game by recognizing use cases, planning trial projects with precise implementation tactics and obtaining blockchain expertise, either internally or via purchases/partnerships. Retailers who move fast as well as realize how the blockchain can profit their business and improve required skills will get a lead in the market as distributed technology streamlines the retail landscape.