Blockchain Networks Are the Next Big Step For Retail and E-Commerce Companies

Take a company like Target, for example. The retailer, who recently announced its blockchain initiative, ConsenSource, ships in products from around the world. Not only does Target stock furniture and electronics, but it supplies groceries and healthcare products as well. In the case of the latter, it’s especially important to know where products originate from.

From Web-Based to Blockchain

Moreover, blockchain networks are a natural progression for retailers starting to see success in the world of e-commerce. According to a report from CNBC, companies like Lululemon saw a 35 percent growth in online sales in the past quarter alone. Best Buy grew 14.5 percent, Walmart 37 percent, and Target 42 percent. Lululemon wants nothing but to expand their online presence, with the company planning to increase the availability of its ‘buy online pick up in store’ initiative. While Amazon appears to dominate the e-commerce market, it can’t beat the fact that other retailers have brick and mortar stores. This in combination with an online presence allows these stores to put up a fight. That’s not to mention the fact that Amazon did a lot of the hard work ahead of time. All retailers had to do is copy the giant’s homework, and now they’re excelling both online and off. What remains to be seen is who will be the first to implement blockchain into their practices. On top of Target, there’s Amazon, FedEx, and even Starbucks looking into the new tech. The benefits are more than hypothetical, too. For one, French retailer Carrefour SA has recently seen an influx in sales thanks to implementing blockchain technology in its supply chain management.

A Game of Trust

Establishing trust is the game plan here. As of now, the chain displays data such as pack date, harvest date, or if the product has GMOs. Customers can view this information on over 20 products, with eggs and cheese being the best examples. This transparency increases the trust between customers and retailers, causing them to come back for more groceries. Now, imagine if that technology was applied not only to in-store shopping but online as well. The first to implement that would not only earn the trust of its customers but force other retailers to adapt or risk losing out on sales. Do you think the retail and e-commerce industries are the best use cases for blockchain technology? Let us know your thoughts in the comments below.