Why you should pay attention to e-commerce & NFTs.
The world has changed diruptibly, we went through a pandemic and we were trapped in our homes for a long time…
Fortunately there was something that helped us to stay in touch with each other regardless of the obstacles: The Internet.
We were all shoping online, having digital parties and working from our homes – This was the perfect representation of what the future is going to be like.
We live in a society that evolves with the time, as any species does when there is an obstacle, it evolves. Now humans are evolving and exploring the Internet, the Metaverse, NFTs and Blockchain because it’s the tool that we are going to use to evolve.
As lockdowns became the new normal, businesses and consumers increasingly “went digital”, providing and purchasing more goods and services online, raising sales 50.5% over 2019.
Something similar happened with NFTs where trading spiked 21,000% to more than $17 billion in 2021.
Let’s discover how we can merge these 2 growing industries and be ready for the future.
As more money flows into the metaverse, so do bad actors hoping to extract value at the expense of everyday crypto users.
We spend most of our lives working, so we are not predisposed to lose everything trying to earn more, right? Let’s talk about the common scams and how you could avoid them.
Are you a Company?
What is an NFT?
Essentially an NFT is a one-of-a-kind digital file.
NFT is a technology that can be used to validate the ownership of something, especially digital assets since they enable digital property to be sold. They are built on the blockchain and stay in the decentralized ecosystem.
NFTs are mainly focused on art and digital collectibles, but in the future we are going to see a wild variety of uses for them, starting to talk today about NFTs & e-commerce.
Being on the blockchain is not just anything, it allows to see in a public and immutable way certain data that can be important when buying a collectible, such as: the historical transactions of that NFT with their respective prices, among others.
We could go deeper and explain what is an NFT, what an NFT should contain in order to be a real NFT, what are the uses of NFTs but that is not the purpose of this article.
In order to keep reading, you should understand that NFTs are the representation of something (most of the time, something digitally) that is stored in the blockchain because it’s more secure and opens the possibility of taking advantage of their features.
Ecommerce Industry
How NFTs could contribute to the e-commerce industry?
1. Reducing Customer Lifetime Value
Customer loyalty is what every eCommerce brand focuses on. eCommerce brands can bound NFTs with their offerings to attract more customers. These NFTs could unlock rewards and special benefits. They can also allow buyers to get early and exclusive access to new merchandise, discounts, offers, features, and new products.
Getting a buyer for NFT can be a bit more expensive than getting a buyer for a T-shirt – you can find that anywhere. But the risk pays the reward, there’s a good chance that the NFT buyer will move up the value ladder of your business.
2. Product Authenticity Verification
Since NFTs are based on the Blockchain, it makes them unique, immutable and more important – trackable.
Traceability has emerged as a prime requirement for a multi-tier and multi-site production. It enables visibility and caters to the consumer requirements of transparency and quality assurance.
There is a case study of the textile and clothing industry, but can be applied for any other, that proposes a system to build a technology-based trust among the supply chain partners, where the distributed ledger (blockchain) can be used to store and authenticate supply chain transactions.
3. Inventory Management
Aligned to the previous point, managing data storage and inventories become simpler as NFTs are uniquely identifiable assets. Inventories are automatically updated whenever there is a new transaction. All affiliates within the network can track lacking assets and fill in the stocks timely.
Yes, this is the power of the blockchain.
4. Authenticated Transactions Record
The transactions that take place to validate an NFT before transferring it to an owner can also be visible on the respective blockchain, as indicated above. This means that you can usually trace the NFT back to its source. This gives everyone, especially buyers, a solid way to confirm the validity of an NFT as well as its previous ownership history.
This distinguishes it from traditional or traditional funds transfer or asset transfer agreements, in which a buyer can often only access as much information as the seller wants them to see. With an NFT, the entire history of the property is transparent, allowing the most recent buyer to see if the property has changed hands in the past without their awareness.
Alfa Romeo fully understands this concept and they are innovating with an immutable and decentralized technology that can record the data of a vehicle and issue it as an NFT to certificate its condition.
5. Value-added loyalty programs
Amid the cut-throat eCommerce market, no merchants are staying out of the loyalty programs war to keep customers coming back and increase their LTV. However, while so many are joining with so little creativity or new ideas, nearly 40% of consumers choose not to join loyalty programs because they are seen to lack value, according to RetailWire.
The problem with the pricing fight is that it can only win customers for a very short period-once they find places offering better prices, they will not hesitate to leave you. So to win the long-term game, adding unique and genuine value is something you should invest in.
This is a perfect place for NFT collectibles to fill in the gap. Rather than merely redeeming points on products that a large number of customers can have access to, NFTs offer something truly at the core of customer insight: scarcity. NFTs are entirely unique offerings that customers cannot obtain anywhere else. This creates exclusivity, which adds value to your program by not limiting it just to monetary exchanges.
6. Make a Digital Representation
Most of the physical items, especially the ones that are created for high-end consumers are non-fungible. This means that they are not easily interchangeable.
NFTs are non-fungible too and that is why some people are starting to connect them with physical objects.
Usually, attaching NFTs to physical items has the main objective of validating digitally the authenticity of an asset. It uses blockchain technology to allow people to keep track of the data associated with the item.
The world of collectibles is especially meticulous with editions, past purchases, originals, fake copies, among others – NFTs connected are the digitized future of this. Moreover, the blockchain is decentralized and immutable, no one can falsify anything, helping users to have access to the necessary data without being cheated.
7. Reach new audiences
Launching an NFT can boost a brand’s image for existing customer base while also attracting a whole new generation of audiences as it shows that the brand is on top of the current trends and speak the same language as the existing and new fans (especially the highly desirable vibrant, trend-setting Gen Z and young millennial consumers). Tapping into these vibrant communities can lend credence to branded initiatives, be recognized as a force to be reckoned with in the new era, resulting in increased effectiveness in reaching targeted audiences.
Exclusivity Symbol
Another significant advantage of NFTs is their definition of exclusivity. Buyers of specific NFTs of rare objects might direct spectators to a digital signature instead of brandishing certificates of authenticity by creators to highlight how exclusive or special the asset might be.
This sense of exclusivity can be especially useful in situations when purchasers desire to build or expand their collection while keeping each item’s narrative in mind. This can work great for jewels or expensive items, as the exclusivity allows them to appreciate the transaction even more than they would otherwise. It’s especially true for one-of-a-kind presents or artwork commissions, where the buyer may want to have a written record of their particular purchase.
8. Real brands using NFTs.
There is a big list of brands inside NFTs so don’t be afraid of researching the space.
- Coca-Cola
- Samsung
- Asics
- MAC Cosmetics
- Anheuser-Busch
- Stella Artois
- Acura
- Dolce Gabanna
- Blue Diamond
- Grammy Awards
- Duke University
- Ray-Ban
- Clinique
- Taco Bell
- Hot Wheels
- Gucci
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Ecommerce Industry
Metaverse, NFTs and e-commerce?
Today ecommerce is one of the biggest industries and the biggest companies of today were created around this topic. This is an industry that changed the habits of purchase and it will continue to do so.
NFTs present a similar approach here, they are trying to redefine the concept of ownership as well as the manner of consumption.
NFT is a fascinating market that aspiring ecommerce organizations can utilize in their interests. As Thao Pham says: “By combining NFTs and eCommerce, you can associate the brands’ experience with a sense of product scarcity to gain a high-level profit value”
NFTs have a variety of applications that are mainly focused on digital art or collectibles but we may see the word “NFT” everywhere in the near future. If you want to start now, you could develop a collection around these topics but if you are encouraged to disrupt the market you could also jump into an empty industry and connect it to NFTs being the biggest brand in that space.
