Nanostores (aka mom-and-pop stores) are small family-owned businesses. Typically, they are the primary retail channel in emerging markets and serve billions of people at the base of the pyramid. When designing the supply chain of a nanostore, different challenges arise than would in developed markets. In my research I will focus on those challenges. For example, the presence of cash is much larger in this channel since customers, as well as nanostore owners, pay in cash. Whenever a nanostore is short on cash, orders get rejected leading to large amounts of returns. Moreover, security is an issue, since the cash has to be collected. The research is examining the impact of digital payment methods as well as the impact of providing credits to nanostore owners. Furthermore, we focus on the digitization of the channel, which is fueled by the rapid expansion of mobile internet access. My research will be executed using econometric analysis, experiments in the lab and the field, and using formal models.