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Innovation aims to add value to existing ideas and ways of doing things. It creates a better way of doing things and helps the industry evolve. One of the big changes happening now is the integration of NFTs into e-commerce.
NFT is a popular acronym for the decentralized web and stands for Non-Fungible Token. This is a one-of-a-kind tokenized digital work that, due to its unique features and properties, cannot be exchanged for like-kind.
NFTs can be portraits, works of art, music, files, GIFs, videos, memes, and more. For a digital object to qualify as his NFT, it must be created on a blockchain network and its details must be immutable and publicly recorded. Ledgers are often referred to as distributed ledger technology (DLT).
Traditionally, businesses transacted through proxies or directly with consumers. Such transactions included the buying and selling of goods and the exchange of services. This was the traditional way of doing business before the advent of the Internet, which gave birth to online retailers, also known as e-commerce.
E-commerce refers to all forms of business conducted or transacted on online platforms. This involves producers, distributors, retailers and consumers who buy and sell goods online. This trading concept could be B2B, B2C, C2B, or C2C.
The craze for NFT adoption in both centralized and decentralized spaces has made them one of the latest and most popular blockchain tools. Many industries and sectors have been looking for ways to find use cases for this new technology in their industries. One of these is e-commerce sector, Where NFTs can pave the way for additional economic value.
NFTs can help e-commerce in the following ways:
Since NFTs are digital representations of various objects, you can combine NFTs with goods and goods as an e-commerce company.
Such NFTs serve two purposes:
The Metaverse represents a virtual world where people can experience their imagination. Beyond that is a virtual economic space where various forms of avatars are used. These avatars are NFTs. So having his NFT replicas of your products allows you to bring your e-commerce business into the metaverse and own a store to sell your products.
Famous brands such as Adidas, Gucci, Nike, Louis Vuitton, Burberry, Tommy Hilfiger and Samsung already have shop space in the Metaverse.
Products containing NFT replicas can be easily tracked and authenticated via public ledgers where the NFTs are recorded. Each product is assigned to his NFT, so production and edition numbers can be easily monitored and publicly certified.
This model closes the door on counterfeit products that imitate products, verify transaction records, and make it easier to track and verify ownership of products and editions.
Having an NFT replica of a product means that consumers pay for one product and get two. They pay for the physical product and get additional NFT versions of her. This instant gratification makes consumers stick with your product and brand and let it rain.
NFTs can be gifted to VIP consumers as exclusive merchandise. Depending on the brand’s capabilities, this can be replaced with coupons and souvenirs that can be distributed quarterly or annually to loyal consumers or consumers who make large patronage or large purchases.
NFTs can effectively help e-commerce businesses manage their inventory, regardless of size. When creating NFTs on the blockchain network, select the number of NFTs to create. This will be the number of specific products in stock.
Once this is done, the record will be immutable on the minted blockchain network, making it easy to spot any discrepancies between the actual inventory and minted NFT counts.
NFT collections can be created as pre-orders for specific products. This can be used to reduce or address over-ordering.
If you intend to manufacture a product under your brand but are unsure whether consumers will appreciate it, you can cast NFTs in specific units so that each NFT represents each product. This will make equivalent products available to all owners of such NFTs. This allows you to control your production and reduce the cost of overproduction.
To reduce over-ordering, once a product is manufactured, an equivalent NFT can be cast. Once the NFT is sold out or distributed, such product becomes “Out of Stock”.
NFTs are growing in popularity due to their widespread adoption, so when combined with physical merchandise, they can market products and brands to new consumers willing to own unique pieces of the brand.
Consumers are also indirectly promoting the brand by showing them off on social media. This will increase the demand and sales of your product. Apart from all this, he can list his NFTs on a marketplace dedicated to NFTs. This is similar to bringing marketing into the decentralized space while running additional commercials and advertisements in e-commerce outlets.
NFTs probably can’t replace physical goods. They can only add value to existing ideas and create more economic power. The application of NFTs to e-commerce goes beyond the highlighted use cases. You need to find the one that suits your e-commerce company and make use of it.
It is worth noting that being an early riser will give you a higher rank among your contemporaries. Leading brands are using and embedding NFTs in their businesses to great effect.
Examples of world-famous brands using NFTs:
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*All investment/financial opinions expressed by NFT Plaza are based on the personal research and experience of the site moderators and are intended for educational material only. , the product should be thoroughly investigated.
Technical writer with a passion for blockchain and all things decentralized world.
