NFTs are making their way into various industries, transforming and making a change in them. The E-commerce industry is the latest to enter the NFT rope. Many companies and brands use NFTs as part of their strategies to build brand identity. Let’s look at how NFTs have influenced the E-commerce and Retail industry.
NFTs- An Overview
NFTs or Non Fungible digital assets or tokens supported by blockchain technology. NFTs can represent assets such as jpeg, audio, video file, etc. These NFTs can be traded using digital or crypto wallets.
When a person buys an NFT, he gets complete ownership over the particular token. They hold the ownership until it is sold to someone.
NFTs in Retail Industry
- NFTs have become highly popular among millennials, especially those who like collecting. This is also because they are tech-savvy and also have a disposable income.
- Around a quarter of the population owning NFTs are Millenials. Brands must integrate and engage with NFTs to keep their brand relevant and attract new users.
NFTs in the E-Commerce industry
- E-commerce is an online platform where individuals buy and sell goods through digital mode.
- E-commerce has models such as Business-to-business, Business the customer, customer-to-customer, customer the business, etc.
- NFTs are becoming popular among the crypto community, and e-commerce platforms started using NFTs.
- Bringing NFTs into E-commerce will help the industry increase business growth. The tokenization of physical goods and virtual items has helped the brands generate new revenue opportunities.
Will NFTs play a role in the future of E-commerce?
- Regarding business and commerce, it is very important to be updated and relevant.
- Having a close look at the changing market patterns of the market and attending to the customers’ needs will help the brand sustain itself in the market.
- Looking at the current trends in the market suggests that the E-commerce industry needs a strong force like NFT to adapt to new brand strategies.
- Every brand needs to make an NFT strategy that will work for them. Non-fungible Tokens will add more value to the brands and use them to drive customer utility and customer value.
- NFT-based strategies will require the companies to become more customer oriented.
Here’s how NFTs are used in E-commerce?
Offer something unique
NFTs can modify how brands provide loyalty programs to their customers. Customers are usually huge fans of loyalty programs and discounts. But over time, customers might feel bored. Especially when multiple brands are offering the same kind of products and offers, the customers might find it monotonous.
Offering an NFT and the best NFT marketplace for beginners would be a wise choice in many ways. But with Non-fungible Tokens, brands can rethink their loyalty programs. Customers will get to hold something unique with the advantage of scarcity and exclusivity. This will help build a credible relationship with the customers and the brand.
E-commerce cannot instantly gratify a customer’s need. The customers get a sense of satisfaction and joy when they purchase online from anywhere and anytime. But the wait for the product can be quite boring. NFTs can fill the experience gap if you offer them along with the physical product that will take time to arrive. Customers can instantly own these non-fungible Tokens and brag about their digital presence. This will also help increase profits and set the brand apart from other brands or competitors.
AR has always been a part of the E-commerce space. The customers get to experience the product’s look and feel before making a purchase. Especially, the D2C brands that do not have a storefront depend on AR.
Examples of NFTs in E-commerce
- The most renowned brand Nike has launched its NFT-based line of sneakers called Cryptokicks.
- Nuno, an Australian start-up, developed a platform that allows users to buy wearable Non-fungible Tokens through credit cards.
- Shopify lets its customers directly sell non-fungible Tokens on the forum.
Though Non-fungible Tokens play an important role in changing the brand value and image, the mainstream audience is still skeptical about the developments in this field. The entry of NFT also does not mean that it will replace the physical products. However, partially implementing it with your offers and services will appeal to the digitally oriented customer base. Eventually, it is expected that more brands and customers will jump onto the bandwagon.