Earlier retailers were confined to physical stores and relied on local customers to generate earnings. They had to wait for shoppers to visit their locations. However, tech evolution has made it possible to sell products as well as services from anywhere and still cater to worldwide customers through eCommerce.
Now, the tech world is taking another step ahead by incorporating its latest innovation, NFTs (Non-Fungible Tokens), in eCommerce development. This synergy has just taken the online shopping marketplace to a whole new level and opened new avenues, especially for business. But how does the NFT work in eCommerce, and what are the advantages of NFTs in online stores?
Understanding NFTs
NFTs are non-fungible tokens that are immutable and unique, built on a blockchain platform. NFTs describe different types of digital assets such as art pieces, cards, currency, digital content, video, etc. Moreover, any physical asset that can be digitalized can be used to create NFT.
NFTs are tokenized using unique recognition codes built from metadata via encryption. They can’t be replicated, manipulated, or destroyed but can be interchanged with money, cryptocurrencies, or other non-fungible tokens.
NFT marketplaces are unique blockchain-based platforms that display, trade, exchange, and mint NFT assets. These marketplaces act as trading venues, supporting different NFTs and meeting the needs of the art world, online gaming, and other niche-specific requirements.
NFTs For eCommerce Platforms
Businesses across various sectors are investing in Non-Fungible Tokens and NFT marketplace development because of their impressive digital accessibility. However, they are gaining huge popularity in the eCommerce market as well. NFT marketplaces allow businesses to incorporate this technology into their existing business models to open doors to new revenue streams. By leveraging the unique features of non-fungible tokens, companies can establish a secure and robust ecosystem that includes digital representations of their physical products for selling purposes.
Real-life examples of NFTs in eCommerce
- Fred Segal, a renowned American clothing brand, uses NFTs to showcase and sell its premium products.
- Adidas, a global sportswear brand, collaborated with PUNKS Comic, GMoney, and Bored Ape Yacht Club by launching “Into the Metaverse.”
- Shopify, a top eCommerce platform, has allowed businesses to directly trade NFT on their Shopify online stores without third-party interference.
- Nike, a famous activewear band, is also selling footwear on its NFT-based system called CryptoKicks.
What Are The NFT Benefits For The eCommerce Industry?
There are numerous benefits of NFTs for eCommerce platforms, some of which are mentioned below:
Product Authenticity Verification
The lack of engineering solutions to verify product authenticity on eCommerce platforms has led to widespread issues with counterfeit goods. Even major brands have suffered significant losses due to the proliferation of fake and duplicate products in the market. eCommerce with NFT development brings immutability, uniqueness, and traceability into the eCommerce industry. Each product gets a unique identity, which verifies its authenticity. This approach aids in building customer trust, building reliability, and increasing overall revenue.
Reduced Operational Cost
As eCommerce works on the centralized approach of Web 2.0, thus the trading of goods and services involves third-party support for efficient processes. This need for intermediaries increases the cost of operations for businesses and eventually for customers as well. However, NFTs remove the need for third-party involvement, streamlining the workflow and reducing operational costs.
Instant Gratification
While eCommerce platforms offer fast and even same-day delivery, tight delivery deadlines can still be a challenge. However, eCommerce businesses can combine NFTs with physical products, facilitating instant gratification. When a customer makes a purchase of virtual NFT, they immediately receive ownership of the products, even though product delivery can take time.
Build Customer Loyalty Programs
Businesses in the eCommerce industry utilize loyalty programs to grow and maintain their customer base. However, many companies struggle to retain customers through these programs because customers often lose interest in temporary rewards. One of the advantages of NFTs in online stores is the ability to offer unique, long-term rewards. By creating value-added customer loyalty programs, companies can better retain their valuable customers.
Better Management
eCommerce businesses offer a wide range of products, each with its own data related to production, sales, customer interactions, and much more. Thus, managing this extensive data becomes extremely difficult for them. Expert NFT development companies like Webcom Systems employ NFTs to build CRMs using this innovative technology. NFTs for eCommerce platforms aid in managing such massive business data with their special tracking and traceability features.
Interoperability For Customers
The interoperability of NFTs allows businesses to enable their customers to use their non-fungible tokens across multiple platforms. This flexibility enhances the liquidity of NFT assets. By retaining the full value of purchased NFTs, customers can trade or sell them easily. Since customers can use their tokens in various environments, this increases both the intrinsic and overall value of NFTs sold as eCommerce products, making them more attractive and versatile.
Which Type Of eCommerce Businesses Benefit From NFTs?
From digital artwork and content, NFT is slowly paving its way into various industries, including eCommerce. It allows businesses to improve their overall efficiency and maximize sales. Here are some of the businesses reaping benefits from NFTs:
- Digital collectibles
- Digital artworks and images
- NFT eCommerce platform
- Home Decor
- Subscription services
- Gaming
- Luxury goods
- Sports and esports
- Fashion & Apparel
- Custom software
- Subscription services
Conclusion
In the future, customers will be able to see more from the world of NFTs! As more businesses realize the NFT benefits for eCommerce and its enormous potential, they are investing in NFT development. If you’re ready to integrate NFT into your eCommerce business, Webcom Systems is here to guide you through every step of the process. Reach out today to discuss more.
Recommended Read: Future of Metaverse: NFT Development is Now
