How Blockchain Is Beneficial For B2b Companies?
Technology has surpassed any milestones that we might have had for it. Now it has become ubiquitous in business and any business that doesn’t harness the power of technology is left behind. Ever since technology entered the market, the eCommerce sector has seen a lot of growth and evolution. There is a lot of change that this sector has seen and more is on the way. The current technologies that have made a powerful impact on this sector are blockchain technology, AR and VR technologies, as well as IoT, to name a few. Businesses now have more power to reach their clients and users now expect more from the businesses that they interact with.
One of the technologies that have made a real impact on the B2B industry is the blockchain technology. It has helped the industry overcome a lot of problems that it was facing like data security, frictionless payments, better supply chain management, and more. This way it has enabled the businesses to improve their retail process as well as others.
Problems Ecommerce Businesses Face
Here, we are going to look at all the ways that AI-based solutions and blockchain technology have helped B2B companies. But before that, let us see what were the problems that B2B businesses were facing before this technology came out.
Lesser Operational Efficiency
When we talk about an eCommerce business, we see that there are a lot of discrepancies in the business operations. This is especially the case when a business is receiving multiple products from multiple locations. The problem that arises here is to make the logistics as well as the payment processes seamless and smooth. Also, with different departments, you have different management systems that overlook the whole process and workflows.
Non-Transparency in Payments
Another problem that is faced by businesses in this industry is that there is a lot of discrepancies when it comes to transparency in payments between the service providers and their customers. One major example of this is the handling charges and miscellaneous fees that come with the transactions. Usually, these expenses are not explained fully by the retailer.
Non-Dependable Data Security
Another problem that businesses face is the authenticity and security of their data or the data that is coming to them from consumers. The data could be in a form that makes it unauthentic. Also, no matter where you save it, there is always the chance that a hacker might get into it and steal it or damage it.
How Blockchain Provides Benefits to B2B eCommerce
Keeping in view all the problems that we discussed earlier, here are some of the ways that a blockchain app development company can help a business by creating an app for them.
1. Preventing Tax Liability After-Effects
According to the figures cited by the US Supreme Court in 2018, they were suffering from a lack of online sales tax by more than $44 billion annually. After this statement was issued, various laws came up for not paying taxes. These laws imposed felony charges on companies that didn’t pay their taxes over $10,000.
When businesses use blockchain for their records, they can show their sales records to the tax authorities and prevent any liabilities. All you need is to partner with a blockchain-based mobile app development services provider. Once you have your own, bespoke blockchain app, you can save and transmit digital sales receipts, invoices, and other documents. This way, you will lower the chances of fraud. It will not only help businesses prevent being implicated in tax fraud, it will also help them with tax refunds on their purchases.
2. More Streamlined Supply Chain
B2B Ecommerce transactions are complicated with multiple parties involved and information going through all of them. This might lead to delayed payments as well as damaged reconciliation processes. Blockchain technology can help businesses by providing them with fast, authentic, and audited transactions between all parties. Businesses can use technologies like XML and EDI to make all transactions visible to the parties involved and no one else.
3. More Streamlined and Transparent Smart Contracts
Most B2B businesses use Request for Proposals (RFPs) to address procurements. When businesses use smart contracts for this purpose, they can better explain their projects as well as provide all the information and data that goes with the project. This can include a delivery timeline, payment process and plans, and everything else. The benefit of using smart contracts for RFPs is that once the contract is made, neither the buyer nor the seller can back out of it. If they do, they won’t get the amount that was agreed upon.
4. Eliminating Financial Carelessness
Whether we talk about B2B business or any other type of business, we have to admit that there are always discrepancies and inefficiencies that create problems for the businesses involved. This is true for B2B Ecommerce as well. When you use blockchain technology for B2B eCommerce, you can ensure:
- Fraud prevention.
- Fast recovery.
- Frictionless payments. And more.
More than 25% of banks and other retailers, as well as manufacturers, will have leveraged the power of blockchain technology, according to an IDC report. Also, experts are predicting that by 2023, more than $60 billion worth of cross-border payments will be facilitated by blockchain technology. Given above are only a few ways that blockchain can be beneficial for B2B companies.