How NFTs are changing the landscape of e-commerce
What is an NFT?
Basically, an NFT is a unique digital file. NFT is a technology that can be used to validate ownership of something, especially digital assets as they enable the sale of digital property. Blockchain and stay in the decentralized ecosystem. NFTs are primarily focused on art and digital collectibles, but in the future we will see a variety of uses for them, starting today to talk about NFTs and e-commerce. Relying on the blockchain is not just enough,
allows you to publicly and immutably view certain data that may be important when purchasing a collector’s item, such as among others: the transaction history of these NFTs with their respective prices.
We could go deeper and explain what an NFT is, what an NFT must contain to be a true NFT, what the uses of NFTs are, but that is not the purpose of this article. To read further, you need to understand that NFTs are representations of something (usually something digital) stored on the blockchain because it’s more secure and opens up the possibility of using its features.
How NFTs are changing the landscape of e-commerce
· Decreasing Customer Lifetime Value
Customer loyalty is what every ecommerce brand focuses on. Ecommerce brands can tie NFTs to their offers to attract more customers. These NFTs could unlock special rewards and benefits. You can also give shoppers early and exclusive access to new merchandise, discounts, offers, features and new products. Finding a buyer for NFTs can be slightly more expensive than finding a buyer for a t-shirt; You can find it everywhere.
But risk pays off, there is a good chance that the NFT buyer will move up the value ladder of their company.
· Product Authenticity Verification
Because NFTs are blockchain based, they are unique, immutable and most importantly, traceable. Traceability has become a key requirement for multi-stage, multi-site production. It enables visibility and meets consumer demands. transparency and quality assurance. There is a case study from the textile and apparel industry, but it can be applied to any other and proposes a system to build technology-based trust between supply chain partners where the Distributed Ledger(Blockchain) can be used to store and authenticate supply chain transactions.
· Inventory Management
Consistent with the previous point, managing data storage and inventory becomes easier since NFTs are uniquely identifiable assets. Stocks are automatically updated with each new transaction. All partners within the network can track missing assets and replenish stocks in a timely manner. Yes, that is the power of blockchain.
· Authenticated Transactions Record
Transactions that take place to validate an NFT before it is transferred to an owner can also be viewed on the respective blockchain, as mentioned above. It means that you can easily trace the NFT back to its source. Buyers, a powerful way to confirm the validity of an NFT, as well as your past ownership history. This sets it apart from traditional or traditional money transfer or wealth transfer contracts, where a buyer can often only get as much
information as the seller wants. so that they see. With an NFT, the full history of the property is transparent, allowing the most recent buyer to see if the property has changed hands in the past without their knowledge. How NFTs are changing the landscape of e-commerce
Alfa Romeo fully understands this concept and innovates with an immutable and decentralized technology that can record a vehicle’s data and output it as an NFT to certify its status.
· Value-added loyalty programs
Amidst the murderous e-commerce market, no merchant is left out of the loyalty battles to keep customers coming back and increasing their LTV. Yet while many join with so little creativity or new ideas, almost 40% of consumers choose not to join loyalty programs because they are seen as inferior, according to RetailWire. The problem with price wars is that you can only get customers for a very short time: if they find places that offer better prices, they won’t hesitate to leave it. So to win the game in the long run, you need to invest in creating unique and real value. This is a perfect place for NFT collectibles to fill the gap.
Rather than simply redeeming points for products that a large number of customers can access, NFTs offer something that’s really central to customer perception: scarcity. NFTs are totally unique offerings that customers can’t get anywhere else. This creates exclusivity that adds value to your program by not being limited to just exchanging money.
· Make a Digital Representation
Most physical items, especially those made for high-end consumers, are non-dispensable. This means that they are not easily interchangeable. NFTs are also non-fungible and that’s why some people are starting to go online. with physical objects. Typically, the affixing of NFTs to physical items has the primary purpose of digitally validating the authenticity of an asset. It uses blockchain technology to allow users to track the data associated with the item.
The world of collectibles is particularly comprehensive with editions, previous purchases, originals, fake copies and much more. Connected NFTs are the digitized future of it. Also, the blockchain is decentralized and immutable, no one can fake anything, which helps users. to access the necessary data unhindered.
· Reach new audiences
Introducing an NFT can bolster a brand’s image for the existing customer base while also attracting a whole new generation of audience as it shows the brand is aware of current trends and speaking the same language as current and new fans (especially desirable, vibrant, trend-setting, Gen Z and young millennials). Leveraging these vibrant communities can bring credibility to brand initiatives and be recognized as a force to be reckoned with in the new era, leading to greater effectiveness in reaching audiences. .
· Exclusivity Symbol
Another significant benefit of NFTs is their definition of exclusivity. Buyers of rare item-specific NFTs can direct viewers to a digital signature instead of showing creators’ certificates of authenticity to highlight how exclusive or special the item might be. This sense of exclusivity can be especially helpful in situations where buyers want to build or expand their collection around each item’s narrative. This can work very well for expensive
jewelry or items, as the exclusivity will make them appreciate the transaction even more than they would otherwise want a written record of your special purchase.
· Real brands using NFTs.
There’s a huge list of brands within NFT, so don’t be afraid to explore the space.
- MAC Cosmetics
- Stella Artois
- Dolce Gabanna
- Blue Diamond
- Grammy Awards
- Duke University
- Taco Bell
- Hot Wheels
Metaverse, NFTs and e-commerce?
Ecommerce is one of the largest industries today and today’s largest companies have been built around it. This industry has changed buying habits and will continue to do so. NFTs are pursuing a similar approach here, trying to redefine the concept of ownership and the form of consumption. NFT is a fascinating marketplace that aspiring ecommerce organizations can use to further their interests. As Thao Pham puts it, “By combining NFT and e-commerce, you can combine the experience of brands with a sense of product scarcity for high profit value”
NFTs have a variety of uses, mostly 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 build a collection on these topics, but if we encourage you to disrupt the market, you might as well jump into an empty industry and connect them to NFT, the biggest brand in this space.