By: Shalom M., Shravan A, Shravya H.S., Ranjana S., and Arjun U.
This research introduces a novel approach to dropshipping via integration of blockchain technology and smart contracts. Dropshipping is a business model where retailers avoid stocking products by directly fulfilling orders from wholesalers, and face challenges related to inventory management, understocking, overstocking, and financial risks attached. This also focuses on issues related to tampering of data and mishandling of products during the exit transits. Our study addresses these challenges by leveraging blockchain’s capabilities for product authenticity verification, real-time updates, and secure transactions. Smart contracts are powered by Ethereum’s decentralized blockchain. This plays an important role in automating agreements between retailers and wholesalers. These contracts that are developed between retailer and wholesaler help to manage product allocation, duration of stock availability, pricing agreements, order fulfillment, and also can prevent tampering of data, thereby easing the operations and reducing financial risks associated with inventory management and retail risks. Furthermore, the use of cryptographic payments and digital wallets like MetaMask and many more ensures transaction security and protects user identities during payment processing. It is always better than unified payments interface (UPI) and card-related transactions, which reveal your personal info. This strategy not only improves security but also fosters trust among stakeholders. Our findings indicate that implementing blockchain and smart contracts in the field of dropshipping can significantly improve operational efficiency. It can also reduce losses due to improper stocking and lower the hurdles for aspiring entrepreneurs and small-scale retailers by enabling businesses to start with minimal investment in inventory.
Keywords: Blockchain, dropshipping, smart contracts, Ethereum, solidity
Citation:
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