While online retail sales have increased astronomically over recent years, in the online retail space, from shoes, to purses, and even to software-as-a-service (SaaS), retailers are facing challenges in the ways that they reach and satisfy customers.
New Blockchain technology solutions are coming that will help to simplify the customer acquisition process, as well as help customers to make informed choices before buying.
Retailers and returns
We’ve all been there. You find the perfect item for sale online and purchase it, only to discover that it’s actually a fraction of the size you originally thought. Our immediate disgust wears off, and after a few days of procrastinating, we throw it back in the original packaging and send it back.
The fact that this scenario is ubiquitous is not good for the online retail market space. Returns are a major struggle for online retailers, totaling $260 bln last year alone. Packaging is damaged, restocking is costly, and consumers have come to expect better return service than during the early days of Amazon.
The problem with online retail sellers is that customers are unable to kick the proverbial tires before making a purchase. Items such as clothing and shoes are unique, and often simply don’t appear natural in a two dimensional online world.
Other products can be difficult to gauge in terms of size or shape, or even depth. Purses and the like are often returned, simply because the buyer was unaware of the shape of the bottom of the bag.
These problems account for much of the online sales returns. But the problem is that online marketplaces are also losing sales. The big first wave of online retailing has passed, and consumers are not willing to take the risk that the product they see online is really what it looks like.
Solutions through Blockchain
While diagnosing the issue is generally the easy part, finding solutions is not. Creating images that increase sales and reduce return rates can be very costly, often too much for small retailers to handle.
The democratization of content, however, through the advent of Blockchain technology, is creating new platforms, like Cappasity. This is where online retailers and web developers can create, share and monetize new 3D images without the centralized profiteering they’ve come to expect from enterprise-level content providers.
Blockchain technology allows for creators and users alike to share content via peer-to-peer (P2P) networks, allowing creators to work directly with and sell content to online retailers. Further, Blockchain technology makes it possible for smaller image creation firms, or even individuals, to begin creating and monetizing new images.
Decentralized P2P platforms that make data sharing and transfer simple and easy will ultimately have profound impacts on the ways online retailers market goods and reduce return rates.