For a moment, at some point, you might have thought that all the buzz about Non-Fungible Tokens is all just a fad, and it’s going to melt into thin air. Well, it’s not. You would have come across the news about a wad being transferred in the exchange of digital collectibles, but what worth do NFTs hold in online commerce? How long will they stay in the ecommerce market, or are there any chances that they are going to bring a paradigm shift in the industry? What is the connection between them? Let us look at them all with this blog. Belt up!
A thumbnail sketch of NFTs
NFTs, also called Non-Fungible Tokens, are digital assets that are backed by blockchain technology. The NFTs can be purchased through a digital wallet or cryptocurrency. The NFTs can be used to represent anything from a picture, GIF, an audio file, graphic cards etc.
What makes NFTs stand apart from the rest of the ordinary purchases we go through is that when a person buys a particular token, he is also purchasing the ownership of the intangible product. Also, the non-negotiable point is that they hold unique characteristics such as:
The data cannot be altered without the agreement of everyone concerned in the network.
Tokens cannot be exchanged, duplicated or copied. Every token carries its own signature.
Ownership cannot be removed if a sale takes place. That is, even if the item has been traded multiple times, the ownership cannot be contested.
Interfusing NFTs with ecommerce
Online commerce’s attribute to adapt to the latest trends is what makes it more than viable when they are compared with traditional retail. Amidst many new additions to the technology, NFT adaptation is the new normal. We can almost guess that you are wondering about how NFTs can be possibly valuable for sellers who trade tangible goods. And you’ll know the answer right away.
The main setbacks that many merchants face while trading through the online platforms are that,
There are higher risks in authenticating physical goods
We can also see that there are many double selling risks of the tangible goods
Additionally, the price imbalance set up by the companies may be unfair for both the consumers and sellers.
There are imposed restrictions for sales boosting strategies.
If you have been plugged into the blockchain space for a long time now, you might not need a clue for how NFTs will strike off all the said drawbacks. Just two traits- decentralized and ownership are more than enough to blur all the lines between efficient trading and liabilities. But that’s not where everything ends. There’s more to the collaboration that we couldn’t wait to unveil to you.
What does this inclusion hold for the merchants?
Boost profit margins
eCommerce, though, can be praised for many innovations and user-friendly experiences; the only setback is that the immediacy in having the item at hand or at possession will be missed majorly. Though some companies may offer same-day delivery options, there is nothing more significant that beats the joy of getting what you desire at that instant. However, with the hybridization of NFTs and physical goods, the gap can be filled. How?
Solution: The users can take instant ownership of the tangible products that come with virtual NFTs. Though the delivery time can be stretched more protracted, the virtual equivalent (or NFTs) has been purchased. Therefore increasing the engagement. Thus, the sellers can amplify the scope of their products and also increase their profit margins while cutting down shipping or storage costs.
GOT AN IDEA FOR A NFT E-COMMERCE BUSINESS? LET’S DISCUSS!
Ecommerce and rewards have the best relationship right from the day of their evolution. Though they acted as a catalyst to accelerate business, their current allure has got more limited. And some studies suggest that many consumers choose to avoid joining the loyalty programs, as they seem to lack value. This is because the discounts on products that they get from these programs seem to be easily availed by them from better deals.
Solution: So what could make it more rewarding and loyal ‘literally’? The genuineness in them. And NFT collectibles are undeniably the perfect potion for that. It doesn’t draw a line with just redeeming points on products that anyone can access. Far from it, they are the unique offerings themselves! The customers cannot obtain them from anywhere else. The exclusivity takes them to the apex position by not just limiting them to the monetary values or exchanges.
An ecommerce is not a kingdom of a single ruler but is a land of clans. Seeking the uniqueness and trust there is like a shot in the dark. The odds are exorbitant that there might be many other businesses that might launch copycat items, and your recognition will be just teensy-weensy. So, flourishing in this world of unfair games is gauzy.
Solution: Blockchain and NFTs make a terrific combination when it comes to security purposes. Their blockchain-based verification systems make them a feasible option for authenticity. Elements like personal signature and deed of ownership for the garments with virtual NFTs will hold an undefined value, and perceived value would only increase over time.
Latest exigency: Combination of NFTs with AR
Augmented Reality is now all the rage in ecommerce and is primarily used by brands that don’t have physical storefronts or a D2C business. NFTs and their allowance for 3D visualizations of the products are a step further into the future. The virtual self-presentation has already been witnessed in the gaming platforms. Howbeit, the wearable NFTs that are offered with AR will allow users to dress.
How worthy is the NFT based e-commerce store idea for the future?
The above-stated points might be just a glimpse of what the future holds. Every day there is new progress made, and why not? The NFTs seem to provide all the necessary advantages a brand should possess to flourish. Of the given assertion, if you are inspired by this and interested in tapping into this market, then you are free to call the best NFT development company, AppDupe. Please tell us your ideas, and we will metamorphose your dream into a reality!
At AppDupe, we know that our customers are Entrepreneurs and keeping them succeeding is what will make us stronger. So, we promise you, Life Time Updates free of charge. Yes, we know that Apple and Google keep coming out with new versions of their mobile OS's and other companies we clone from also keep updating their features and UX to stay up-to-date. We will take care of that for you, leaving you to do what you do best, Win!
Is this legal?
PicMix and PicYou are almost exact clones of Instagram. MyCityDeal and Wimdu are clones of Groupon and AirBnB respectively. The only thing companies can patent is methodology for achieving an action or leading to an end point. If you can figure out another way to do that, without infringing on other's IP, you totally can. We could, so we did.
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