You wake up one fine morning with the brightest smile on your face and while sipping your usual cup of black coffee, you say to your self – ‘Today is a good day for shopping.’ The online world allows you to scroll through a plethora of options to buy from. The hardworking sellers and artists toil day and night to create amazing products. They go through several hardships to make that product reach you at your comfort. And when you are shopping for your favorite high-end bag or your dream shoes or your ‘must-have’ watches or t-shirts, you see that are identical copies of the same product.
With little or no difference, you are in a pickle to choose the right product. Well, this is just a minuscule aspect of counterfeit products. Fake products, first, second and third copy products, phoney products have plagued the world of e-commerce. According to a recent report, about one-third of online sellers are facing this menace. In 2020, the amount of global counterfeiting had reached $1.80 Trillion, and the losses incurred by luxury brands was about $30 Bn. Some reports even suggest that an organization loses five per cent of their revenue to such frauds.
Consumers and authentic sellers are both on the receiving end. While the genuine purveyors are losing the brand value, consumers on the other hand are losing their hard-earned money and the feeling of being cheated eats them up. Well, when a problem arises, there must be a solution to overcome it. Facts are emerging that Shopify Plugins integrate blockchain to determine the legitimacy of items and sellers. In fact, an American company is testing this concept. According, to the reports, this plugin is an amalgamation of blockchain technology and a cloud-based application called “TAM” that enables brands to generate non-fungible tokens (NFTs) that are pegged to physical assets. In NFT, a unit of data is stored on a blockchain. Upon analysis, the authenticity of the token is measured and included in the chain only if it unique.
Is Blockchain the solution for this?
To get to the solution we need to first understand what blockchain is. So, as the name suggests blockchain is a chain of blocks that contains information. It is a distributed ledger and once the data has been recorded in it, it is practically impossible to tamper with it. The distributed ledger technology (DLT) comes a boon for all as it provides excellent security for all online platforms. Blockchain when used with other technologies like the Internet of Things (IoT), Artificial Intelligence (AI) and Machine Learning (ML), can restrict online frauds of counterfeit products to a great extent.
How can businesses flourish under blockchain?
In today's world, a lot of e-commerce portals are willing to turn towards blockchain for various reasons. This concept applies to a wide range of industries and it is evolving every day. It is fast, easy to handle, needs no mediator, and its pros are endless. Shopify Plugin can use blockchain for authentication which might put an end to counterfeit products and to a large extent online fraud as well. Blockchain enables businesses to flourish by improving their efficiency in the following ways.
1. Transparency, customer satisfaction and growth
Instead of using a central entity to manage the chain, blockchain uses a P2P network. In this, the network participants have access holdings and transactions of public addresses. When the participants join the network, they get a whole copy of the blockchain. In the case of a malfunction where someone tries to create a block, it won't be added to the chain unless all the participants have verified it. This ensures that there is no tampering. Further providing the seller and the customer with full transparency. This applies to the retailer, consumer, and manufacturer.
The best part is the consumer will have access to all the important information such as how were the goods made, who is the actual manufacturer, where is the product coming from, did the manufacturer temper with any laws with making the products, just to name a few. And when the consumer is sure of all these aspects, it restores their faith in the manufacturer. One of the main aspects of any business is customer satisfaction. If transparency is something that assures them, the company-consumer relationship is bound to grow which indirectly beneficial for the business.
2. Fast, accurate and authentic
Radio-frequency identification (RFID) tags when used with blockchain solutions can provide increased security and traceability becomes easy. Be it a broken product, defective apparel, or a fake item, once they fall in the blockchain pattern, tracing it back to the source will put an end to lot issues.
In today’s world, most of our consumers are health conscious. They are quite particular about what is included in their diet. In such cases, if brands provide them with access to traceability, the consumers can heave a sigh of relief knowing that their food is of the A1 quality. This ensures customer satisfaction, eliminates damaged goods, helps to curb counterfeiting while restoring the brand value.
3. Flawless cross-border payments and international reach
When you start a business, you aim to flourish it and hope that it grows beyond boundaries. With the advent of technology and social media, your product can easily catch the consumer's eye. Shipping can be taken care of, but the payment is something that might worry you. Blockchain enables business-to-business and person-to-person payments across borders. According to a study by this global and leading company, this trait will reduce the cost of the transaction by 40-80 per cent. Moreover, these transactions take place in real-time. With this, it is secure as it incurs public-private cryptography and multi-party authorization. Now, if your product is reaching the consumer across the border, your business is bound to reach new heights of success.
See how we have helped companies develop their blockchain solutions.
Let us be a part of your journey
While consumers today want nothing but the best, the menace of counterfeit products and other frauds haunt them. Blockchain is the present and future. We not only observe all the industries, but we are up to date with all the technology trends. And we believe that the inclusion of this technology will surely keep a check on such swindles. While e-commerce sites are trying the best to tackle this problem, we would like to offer our helping hand to all those who wish to transform their business and supply chain. Here’s why you should partner with us.
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