Currently, NFTs are the hottest thing in technology, and numerous e-commerce companies are incorporating them into their business plans. This should come as no surprise at all given the outrageous sums some of them have requested. With a sneaker offering, even former Chicago Bulls superstar Scottie Pippin is optimistic about NFTs.
How are NFTs anticipated to affect the market and are they truly the future of eCommerce? Let’s investigate!
What Is an NFT?
Due to their non-fungibility, NFTs cannot be traded for other goods. For instance, you could get 20 one-dollar bills for a $20 bill. However, if you were to possess a twenty that Marko Jaric had signed, it would become unique and non-fungible.
NFTs are solely digital; examples include audio and video files, digital artwork, etc. One that you purchase makes you the owner of the actual item as well as the license to use it. You are free to keep it for however long you want or to sell it to someone else.
Why Are NFTs So Common?
Owning a product that is available only digitally might seem absurd. Why would someone invest in something they can’t touch or feel, after all?
NFTs, on the other hand, have already gained popularity and have been put up for auction by two prestigious firms, Sotheby’s and Christie’s. Major fashion companies are likewise hopping on board, as evidenced by Gucci’s first-ever digital-only sneaker.
Like other forms of art, they will never completely replace physical goods, but they are anticipated to have very high earning potential. Imagine having a piece of digital music in your collection. Although it won’t ever be able to replace your CD or vinyl album, it is still something you can call your own.
You might consider NFTs a danger if you run an e-commerce company. They do, however, offer lots of choices. If you play your cards right, they might even help your e-commerce business grow in value.
Combine NFTs With Tangible Goods
By providing bundles of tangible goods and NFTs, an ecommerce company can appeal to the metaverse’s early adopters. People will want their avatars to own the same kinds of things that they do in the real world, so you can profit from this early on.
Nike has already begun making its own “cryptokicks” and developing a blockchain system that allows customers to both own the product in 3D and acquire the corresponding NFT.
Gucci and Balmain are acting similarly. Gucci sells its new digital trainers for $11.99, making it much simpler for the average consumer to obtain a signature Gucci item while the former is still charging relatively high prices for theirs.
You can follow suit. To ensure that all of your customers’ needs—both online and offline—are satisfied, provide an NFT version of the product you are selling.
Offer Gratification Immediately
The only area where e-commerce falls short is in meeting customers’ needs right away. It’s true that you can give customers the satisfaction of finishing a purchase at any time and from anywhere. But shipping is still a factor.
If you provide NFTs along with the physical product, which will take some time to arrive, you can close the experience gap. Customers will instantly own the NFT, allowing them to display it across various aspects of their digital presence and brag about it to their friends.
Additionally, it can boost your profit margins and distinguish you from your rivals as a leader in early adoption and future-proofing.
Offer Something Distinctive And Collectible.
By allowing points to be exchanged for NFTs, you can advance your loyalty programs. Customers appreciate the discounts that loyalty programs typically provide, but after a while, they can become monotonous. Additionally, they are all essentially the same; very rarely does a brand have a loyalty program that is truly unique.
However, if you offer an NFT, which is a collectible or a singular item that isn’t available anywhere else, you’ll be playing the exclusivity and scarcity card. It’s a way to give much more value than is actually there.
With their Moments platform, where fans collect and trade Top Shot Moments, the NBA already provides this kind of experience. The league is already experiencing a rise in popularity and trade because we are aware of how invested diehard fans can be in a rare item.
Although we don’t anticipate NFTs to replace tangible goods anytime soon, they can enhance your offering and enhance the appeal of your brand to a customer base that is more inclined toward digital transactions. According to US virtual assistant services company, The technology will take some getting used to, but once you do, it will be worth the effort because it will allow you to develop and grow in new ways.