As a business model, SBT is a form of consignment transaction in which merchants retain ownership of a retailer`s inventory stock in stores or stores until items are scanned and sold at the point of sale. This is the time when inventory ownership automatically switches from merchant to distributor. Traders are then paid on the basis of what has been sold in the register. Scan-based trading (SBT) is the process by which suppliers retain ownership of retailers` inventory or stores until items are scanned at the Point of Sale. Scan-based commerce offers significant benefits to retailers, distributors and customers. Unlike other delivery methods, distributors only pay manufacturers when products are scanned or sold to consumers. Storage costs and reduction liability are generally shared by the parties instead of being fully supported by the retailer. On the surface, this may sound negative to a distributor, but it is the opposite. Retailers who have less to worry about shrinking are much more likely to experiment and allow distributors to introduce new products into the retail trade and determine their performance with less risk to the distributor.
The scan-based trade primarily applies to products marketed through direct-to-store delivery, commonly known as DSD. The most common commercial application based on scanning on DSD products includes garden seeds, DVD/blu-ray discs, newspapers and magazines. Almost all newspapers and magazines are distributed to the trade using the DSD distribution method. According to a supplier analysis [best source required] “most major retailers in the United States – including CVS, Safeway, Kroger Aholds Divisions, A-P and its subsidiaries, Hess, Barnes-Noble and Rite Aid – run their newspaper operations on the SBT model.” According to Poff, “most [retailers] rely on a third-party partner to provide supervision. Scan-based trading with vendors such as iControl provides integrated inventory management, where distributors and distributors can access and share transaction and inventory data from a single platform. As a result, the visibility of inventory information is increased for both parties. Traditionally scanned-based commercial programs use electronic data exchange solutions as a key element to synchronize information on storage sites (organizational structure 816), items (price/sales catalog 832), daily sales (daily sales ( 852 product activity data), receiving services (receiving advice 861), invoices (bill 810) and payments (transfer advice 820) between a retailer and its scanning service providers. Scan-based commerce (SBT) is a widely used payment solution that adapts supply and demand to the retailer`s point of sale and thus offers significant business savings to both retailers and distributors.
First of all, it seems that the benefits of analytics-based trading are mainly deducted from savings for retailers, in fact, the scan trading provider is usually the engine of trade because they get huge benefits. In the magazine industry in the magazine sector, the full implementation of SBT is expected to save retailers and suppliers $220 million per year.  Among the benefits to the vendor in implementing SBT, an experienced distributor can benefit from scan-based trading by becoming a preferred supplier.