Digitization of commerce has revolutionized the way goods move across borders. Digitization allows us to capture the potential of Business-to-Business (B2B) ecommerce industry. There is tremendous potential for digital solutions in the B2B industry mainly secured payments, inventory management, logistics, pricing, and market trend analysis.
In the B2B trading landscape, validating the trustworthiness and the reputation of parties involved in a transaction is difficult. Trade finance plays a crucial role in B2B trading. Trading companies are often at risk as cash-in-advance or lengthy banking processes to secure trade finance are their only options. Along with the lack of trust, there are myriad challenges for B2B sellers such as the prevention of fraud and authentication of buyers.
B2B trading involves numerous transactions with bulk trade, yet businesses have not been able to adopt a platform which offers increased operational efficiency and reduced risks. B2B ecommerce payment industry is touted to be valued at $2.77 trillion by 2020 in the US. Most of the B2B transactions are carried out via websites (80%) followed by emails (77%) and mobile phones (72%) as per a survey conducted on more than 500 international merchants.
Before doing any business, owners often need to rely on online reviews and web searches to establish the authenticity of the companies. Often these reviews are bought and fabricated, further increasing the risks involved in B2B transactions. This lack of trust creates a huge hindrance in B2B activities especially for small and medium-sized enterprises and there exists a huge difference between potential and actual revenue.
Distichain brings together traders, manufacturers, distributors, retailers, logistics providers, insurers and bankers all on a single trading platform that secures, simplifies and empowers all participants.
Transaction commissions in the ecommerce are usually in the range of 5-10% split between the platform fees and payment fees (credit card/PayPal). Depending upon the category, B2B trading of consumer goods delivers extremely low margins that are unable to absorb this current commission structure. Distichain automates the whole transaction process allowing for a significantly reduced commission rate at 0.3% of traded value. Distichain automates Logistics, Inspection, and Insurance to provide a seamless and complete experience traceable via Distichain’s intuitive interface. This eliminates the need for large teams to manage tedious manual processes and these utilities are paid for by our utility token: Disticoin.
In order to ensure complete security of transactions, every user registering on Distichain provides Trade finance and undergoes Anti Money Laundering /Know Your Customer (AML/KYC) checks. Trade finance is used to secure 100% of transactions on Distichain. Accordingly, Distichain offers users the opportunity to buy and sell on credit to any other participant, risk free. Distichain is one step ahead of global B2B ecommerce as it has a built-in engine which use AI algorithms to provide deep analytics into the product trends of buyers and sellers by analyzing the real-time data whilst maintaining user privacy and anonymity. By deploying and integrating users’ enterprise resource planning (ERP) feeding its real-time trend analytics. As a result, the B2B user is greatly empowered via Distichain.
Distichain business model depends on revenue generated from 3 main sources: trade commissions, service provider revenue sharing and consultancy/data analytics. Supported by Disticoin, Distichain’s utility token, which is held by Stakeholders who are responsible for the maintenance, operations and securing of the Distichain network.
Accordingly, Distichain secures, simplifies, and empowers B2B e-commerce allowing companies to finally benefit from it’s full multi-trillion USD potential.