Are NFTs The Future Of Ecommerce Industry?
NFTs have become a hot trend these days. They are penetrating different industries and empowering them with innovative abilities. Especially in eCommerce, NFTs are expanding dramatically.
With the integration of NFT in eCommerce development, online shopping is set to reach the next level. Today, customers can virtually try on products and make good selections. They can get ownership of their digital assets and customize their products as per choice.
Hence, the growing expansion of NFTs in eCommerce development has evoked a big curiosity about the future of NFTs in eCommerce.
- How does NFT work in eCommerce?
- What benefits eCommerce businesses drive from NFTs?
- How NFTs will change the eCommerce industry in the future?
If you run an eCommerce business then these questions matter a lot. It is because NFTs are trending and their usage in the eCommerce industry is growing exponentially. So it is important to know what is the future of NFTs in the eCommerce industry. And in this blog, we will discuss this hot subject.
What is NFT?
NFTs are non-fungible tokens which are built on a blockchain platform. The term non-fungible means that it is unique and can’t be manipulated with anything. It doesn’t allow replication of any kind of data manipulation. Therefore, NFTs can’t be mutually interchanged with other digital products.
NFTs could be any type of digital asset that consists of images, videos, music, audio, digital artwork, cards, currency, or other digital things. The best part of the NFT concept is that it allows you to convert any physical asset into NFT which has the ability to be digitized.
And therefore, this unique feature of NFT marketplace empowers eCommerce businesses to take advantage of innovative technologies in their existing ecosystems.
NFT in eCommerce: What’s Happening Right Now?
The popularity of NFTs is rising with skyrocketing speed. Investors and businesses are heavily investing in NFTs and NFT marketplace development seeing its rapid growth. NFTs, however, are meant for only digital accessibility.
But it has the ability to be used in other different use cases. Specifically, in eCommerce, NFTs offer a variety of benefits to online businesses. With NFTs, eCommerce companies are able to make an attractive digital representation of their physical products.
They give exciting offers in the form of NFTs to attract more customers. And therefore, the use of NFT in eCommerce is growing significantly.
According to market reports, many eCommerce companies have started utilizing the abilities of NFTs in their existing business models and driving new revenue streams.
With NFTs, eCommerce is getting a new source of revenue and developing a secure and robust ecosystem to improve the ability of their eCommerce website and mobile application.
Here are real-life examples of eCommerce businesses that have implemented NFTs in their system.
Shopify, a leading eCommerce platform has made it possible to sell NFTs via its platform. Shopify allows its merchants to sell NFT content directly from their online stores.
Nike has recently introduced CryptoKicks patent facility in their shopping platform. CrytoKicks is an NFT-based system that allows users to split two pairs of virtual shoes to create a new one. If customers like any of them, they can register it with the seller and receive a corresponding NFT. If the patented shoes are sold again or purchased by other customers then the digital token will be rewarded to the patent holder.
America’s leading clothing brand Fred Segal used NFT to create a physical display of their products. Some of their NFTs have even sold out for thousands of dollars.
How NFTs work in eCommerce?
While you might feel excited about this hot integration, the fact is NFT and eCommerce are two completely different technology domains. eCommerce works as an online trading or shopping platform. It allows people to buy and sell products over an Internet network from their devices.
The current eCommerce ecosystem uses a centralized or a single server for managing all the online operations of the eCommerce site or mobile app. However, NFTs are built on blockchain platforms that are fully based on decentralized concepts.
Therefore, the merger of NFTs and eCommerce is actually not an easy match. eCommerce uses centralized web and mobile app development technologies. Whereas, NFTs use blockchain technology to convert a digital asset into an NFT.
So the question arises how NFTs can be integrated with eCommerce?
How could NFTs work in eCommerce when they both are built on entirely different architecture and technology?
Well, it’s true that the integration of NFTs in eCommerce platforms appears to be a barrier or complex task. But the common attribute of eCommerce and NFT which is to trade online gives great scope for implementing NFT in eCommerce.
It is because the current top eCommerce platforms work on a centralized ecosystem. They largely have to depend on third-party services for the trade of products and services on the eCommerce site.
And this is where NFTs enter eCommerce to provide a better solution for online trade and exchange. By implementing NFTs eCommerce businesses can eliminate the involvement of third parties. It helps eCommerce businesses to assign a unique digital token to their product or service. In this way, NFTs enable eCommerce to utilize blockchain technology.
What types of eCommerce businesses can benefit from NFTs?
While the use of NFT in eCommerce development is currently evolving and limited to digital artwork and content. NFTs still provide many abilities to eCommerce in terms of digital ownership, fast and secured accessibility, and data traceability.
NFTs provide support to a variety of eCommerce businesses to improve their efficiency and sales growth. Let’s take a look at what are those online businesses that can take advantage of NFTs.
- Digital collectibles
- Home Decor
- Fashion & Apparel
- Custom software
- Subscription services
- Digital artworks and images
- NFT eCommerce platform
Benefits of Using NFT in eCommerce
There is a huge scope for NFTs in eCommerce. It provides immense benefits in various ways. NFTs empower eCommerce businesses to utilize advanced technologies like blockchain, Web 3.0, cryptocurrency and augmented reality.
With NFTs, online businesses can make their online eCommerce platform in the NFT eCommerce marketplace and sell digital assets along with physical products. There are more benefits beyond this. Let’s take a look at the benefits NFT provides to ecommerce.
1. Create NFTs of physical products
NFTs could play an influential role in improving customer loyalty. eCommerce businesses can assign NFTs to their physical products to attract more customers. Or they can simply create NFTs of their physical products and sell them along with the same products.
As a result, NFTs can attract customers with better exclusive benefits and rewards. Since the popularity of NFTs is growing in the market. Customers might feel more interested in seeing NFTs along with physical products.
However, if you try to sell NFT directly it is difficult to find a direct buyer. But, offering NFTs on eCommerce platforms can attract customers easily. Hence, NFTs help the eCommerce industry by offering exclusive and attractive rewards and offers to customers.
2. Strong product authenticity verification
There has been a drastic need for solid product authenticity in the eCommerce industry. Often, customers have to face many issues in getting wrong or ingenuine products. This happens due to lack of functionality that verifies the authenticity of products.
From Amazon to eBay and Walmart to Alibaba, even big eCommerce brands suffer great financial loss due to wrong or false products. In this case, NFT works as the best solution. NFT is based on the blockchain development approach which makes it completely unique, immutable, and traceable.
With NFT, one can assign a unique value to any physical product and verify its authenticity to assure the sold product is genuine. Consequently, it will help eCommerce businesses establish trust and brand reliability in customers which will ultimately continue to increase sales.
3. Better inventory management
One of the top features of NFT is that it has good traceability. And this feature helps eCommerce businesses in inventory management. Since online business owners and eCommerce companies have to put immense efforts into managing large data storage and inventory resources.
And if a company has a large number of sales in a day then inventory management could be a herculean task. Therefore, the implementation of NFTs in eCommerce is highly needed. As NFTs come with great tracking and traceability features, it helps them manage their inventory and other processes efficiently and accurately.
Many eCommerce app development companies use NFT to build CRMs and NFT marketplaces for eCommerce businesses. They have witnessed good results in terms of better efficiency and savings in NFT marketplace development cost.
4. Authenticated transaction record
Since NFTs are built on a blockchain network it allows a platform to record authenticated transactions. eCommerce and online businesses have to deal with countless transactions in the form of mobile payments, card payments, wallet payments, and so on.
And storing and verifying these transactions becomes a highly complex task. By implementing NFTs in eCommerce business owners can easily validate online transactions and store data in a foolproof place.
With NFT, it becomes quite easy to track the history of transactions and establish transparency and security in the platform. This is because NFTs use the decentralized ability of blockchain technology. But to enable this functionality in your eCommerce platform you will need assistance from a blockchain development company.
5. Create value-added customer loyalty programs
The current eCommerce market is getting highly competitive day by day. With the arrival of new online stores or eCommerce companies, no business can survive or grow without running customer loyalty programs in today’s market.
But despite eCommerce businesses offering customer loyalty programs. They still struggle to retain customers through loyalty programs.
According to RetailWire reports, around 40% of consumers don’t feel interested in joining loyalty programs offered by online stores. After analyzing further they found consumers want long-term benefits as the current loyalty programs run for a very short time.
NFT here assists eCommerce businesses in creating value-added customer loyalty programs with exciting features. They can offer NFT-based rewards and discounts to customers.
Online businesses can offer free NFTs as customer loyalty programs to retain customers on a long-term scale. As a result, NFT helps eCommerce companies to retain their valuable customers by creating value-added customer loyalty programs.
What is the future of NFT in eCommerce?
NFT is trending in eCommerce. It empowers eCommerce businesses with many abilities to improve their online business ecosystem. They can use NFTs in several ways to increase customer base and revenue streams. There are many eCommerce companies and retail brands that have already implemented NFTs in their business models. And they have witnessed great results.
So considering the potential of NFTs and the benefits they provide to online businesses, the future of NFTs in eCommerce seems prosperous and lucrative.
The way eCommerce companies are adopting NFT and blockchain-based solutions in their products. The use of NFTs in the eCommerce market will have a substantial share in the future market.
However, NFT is not expanding quickly and evolving at a moderate speed. It has been applied by only the world’s big e-commerce brands and companies that have sufficient funds and resources to implement NFT and blockchain technology in eCommerce websites and mobile apps. Small and medium size businesses are still far behind in utilizing NFTs in eCommerce.
But as big companies have started, this trend will get fast space gradually and more business people will adopt this unique technology concept in the future.
Why Should You Choose MobileCoderz for NFT eCommerce solutions?
MobileCoderz is among the top blockchain development company in the industry. We have highly experienced and skilled blockchain developers and software engineers who are well-versed in creating blockchain-based solutions for multiple industries.
Our team can help you integrate NFT into your eCommerce platform and build result-driven solutions. Our expertise in using NFT in eCommerce has enabled many online businesses to witness impressive changes and outcomes in terms of more customers and better revenue growth.
eCommerce is a big industry. Since it uses digital technologies it has huge scope for embracing NFTs and blockchain technology-based solutions. NFT empowers eCommerce with different capabilities that help them provide a next-gen online shopping experience to customers.
Today, consumers are highly interested in trading NFTs and using them for exchanging different products. The usage of NFTs in eCommerce will increase tremendously in the future. Therefore, you shouldn’t stay behind in adopting this innovative technology in your business to take an early competitive advantage.
But since integrating NFTs in eCommerce requires high-level expertise in blockchain and other technologies you will need assistance from a professional blockchain company that can help you build NFT eCommerce solutions.
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