Why Is Amazon Getting Serious About Blockchain - Part 1
Here we search the possibilities of retail business as afforded by the Amazon through AWS. Read on and know the factors discussed.
How Is Amazon Influencing Retail Business?
Regarding blockchain, as it continues to dominate headlines and conversations, across the tech sphere, there are some of the biggest names in the industry remaining on the outside of the sector looking in, whereas following several high profile announcements in recent months it has seemed one of the top tech giants finally ready to dive into the field.
Hence it is to comment that this is where Amazon ranks among the largest corporations in the world having spent months exploring the possibilities of blockchain as starting earlier as thereby those explorations that turned into real actions soon after the company has announced several partnerships and plans that would put it squarely in the conversation of the sector’s future. It is here that with its new Blockchain as a service offering as the question surrounding Amazon’s alliance with blockchain from the theoretical to the very practical.
A Multi-Faceted Motivation
Thereafter little question remains that blockchain is quickly becoming a profitable sector as while it was long tied to cryptocurrencies ebb and flow where the technology has since shed its chains and become a key driver of innovation. Hereafter most of the change and disruption have been propelled by developers, entrepreneurs, and smaller companies whereas large corporations have started to see both its value and virtue. This is however evident from the many partnerships announced between blockchain startups and major corporations.
Thereafter for Amazon, however the need to incorporate blockchain tools has two distinct faces that are changing trends in the eCommerce and consumer sector along with seeking avenues to expand its increasingly vital AWS platform.
The Changing Retail Game
As it still reigns supreme in online retail, there is little doubt concerning Amazon as the company accounted for nearly 44% of eCommerce sales in 2017 and a whopping 4% of all retail sales in the US. This dominance, however, comes at a price as most companies that operate their sales through Amazon highlight a major issue according to EranEyal, the CEO of blockchain-based customer intelligence that is from Shopin where the Amazon presents a conundrum that is for awhile also providing a huge platform for wide product distribution, logistical support, and marketing as all of this comes at the expense of what is a personalized relationship thereby between the brand as well as their customers.
It is found that for many retailers, the biggest issue is the loss of end-users’ information collected by Amazon greatly hampering retailers’ sales ability considering most modern consumers preferring a personalized experience which retailers through Amazon simply cannot deliver as also according to an Accenture study,91% of the consumers prefer shopping with businesses that recognize them and remember their preferences something Amazon precludes as more surprisingly the 83% of shoppers are happy to share their data if it means a better experience.
It is found that in lieu of gaining any concessions from Amazon’s data collection practices, many retailers are looking at alternatives and the blockchain is already providing them, whereas projects like Shopin rewards users for loyalty while providing retailers with vital information becoming more widespread. Thereafter others like Sandblock leverage loyalty programs to gather user data and deliver better services. It is therefore for Amazon that working with these technologies would help them improve service both for consumers and the businesses that work through the platform and even so the company’s efforts still seem to be largely focused on what is the B2B opportunities that blockchain affords for now.
To Be Continued
While Amazon is sure to raise the levels of customer service, the retailers are finding a very popular modus operandi to reach their customers. Here this helps integrate most of the services, which thereby allows the businesses to boom in a particular way. What we experience today is one of the major ideas thereby put into practice by the AWS and the blockchain. It is generally noted that this scheme is sure to bring the customers to all that they are being introduced to. As we move forward towards more sophisticated communication channels, there are all these companies relying on AWS for their business promotion. As it offers the customers a more comprehensive reach, many do not still have access to online services. This is where the AWS is targeting next to promote its services and bring them to the customers at the forefront.
This discussion is continued in the next post and thereby explaining more factors regarding the Blockchain that Amazon relies on to expand their services. We are still exploring the possibilities as to why the retailers should necessarily implement to the retailers generally.