NFTs may not be a new term for almost all people as it has been a hot topic with many spotlights over the past year. According to Morning Consult, 29% of US adults show their interest in getting involved with NFTs and 23% of Millennial respondents claim to collect NFTs as either a hobby or an investment. The rapid growth of NFT Development results in its integration into many fields, such as Blockchain games (GameFi), dApp development, digital arts, music, etc. Realizing its power to change the future of eCommerce, many brands wanting to become the first pioneer have started their journey in looking for NFT experts for their initial ideas. And this blog would help such businesses to once again equip themselves with essential knowledge about the NFT Solutions in the eCommerce platform. Let’s keep reading!
1. Why Should Merge NFT Solutions With eCommerce Platforms?
Operating in a centralized system, eCommerce platforms are in need of third-party involvement. These authorities keep an eye on the trade of goods and services that takes place on the site. As a result of relying on these intermediaries, commission distribution can skew. However, building NFTs can eliminate the need for these third parties on the platform.
Moreover, the eCommerce sector is frequently plagued by return fraud, and buyers find it tough to verify the equity of a purchased item. In case a user uses another user's information to make a purchase, it is nearly impossible for him to produce a receipt or prove they purchased the item. Worse still, the process of confirming ownership is lengthy and time-consuming. In that circumstance, adopting NFT solutions, which are uniquely identifiable and secured on blockchain technology, can solve the problem. An NFT can represent a physical item and the verify ownership process is relatively easy, time-saving, and reliable as everything is recorded on a distributed ledger.
2. How Does NFT Work In An eCommerce Platform?
a. Proof Of Ownership
The adopting of NFT solutions in eCommerce platforms can serve as possession evidence for specific assets, such as bespoke, antiques, or other high-value items, where proving ownership is just as vital to the holder as the tangible product itself. Because the NFTs can assure immutable transactions, meaning that it is impossible for anyone to modify, replace or delete, utilizing this token can create a layer of trust for any type of transaction without third-party intermediates, hence translating into the safety of the owner and prompting them to make a purchase.
From the time an NFT is generated to the moment it is transferred to a new owner, there is a clear and irreversible record of transactions for the NFT's entire life cycle. If the NFT's attributes refer to a specific asset, you can be confident that the current holder of the NFT is also the owner of that asset. This assumption can be validated further with additional information such as the seller's digital signature or transaction details.
b. Validated Record Of Transactions
As previously stated, prior to transferring an NFT attached to digital products to a new owner, all the transactions can be recorded and seen on the corresponding blockchain. It means that you can usually trace the NFT back to its source. This gives everyone, especially the buyer, a reliable method to determine the authenticity of an NFT as well as the history of its previous ownerships, which contrasts to the past when buyers only can learn as much as the sellers want them to know. All of the histories are transparent with an NFT, which informs the most recent buyer if the property changed hands in the past without their knowledge.
c. Instant Fulfillment
Although online shopping offers its customers various benefits, it is seemingly hard to compete with physical stores when it comes to immediate gratification. If a buyer reaches the brick-and-mortar stores, tries her favorite items then finishes with a bought decision, she would feel satisfied and happy to receive products immediately. By contrast, even with a same-day delivery option, customers of eCommerce stores still experience the friction of delayed gratification. Luckily, the existence of NFT Development and hybrid shopping has solved that disadvantage. Customers can take immediate possession of tangible products including a virtual NFT. Even if the actual item requires several days to arrive, its virtual equivalent allows customers to engage with their purchase on a more creative level.
d. Valuable Digital Loyalty Programs
To retain old customers and attract new ones, the Digital Loyalty Program is a must-have for many eCommerce businesses. But how to create a genuine value to raise the customers’ interests? NFT Development in eCommerce could be an answer. Rather than simply redeeming points for products that a lot of users can obtain, NFTs provide something that is truly at the heart of customer insight: scarcity. NFTs are one-of-a-kind offerings that customers cannot get anywhere else. This adds value to your program by not limiting it to monetary exchanges.
Related: 3 Reasons Why Businesses Need A Loyalty Program App
3. Uncover Some Outstanding Use Cases Between NFT Solutions And eCommerce
Nike: It is one of the first brands to jump on the NFT Development bandwagon with its “CryptoKicks”, which is secured a patent in December 2019. It is a concept that connects physical sneakers to digital representations of the same. After making a transaction with a registered vendor, a buyer receives a corresponding NFT that uses blockchain technology to confirm authenticity and possession. If the sneakers are then sold or traded, the digital token is transferred along with them. Moreover, to go higher in the NFT Marketplace, Nike also came up with the notion of breeding two pairs of digital shoes to develop offspring. Similar to other digital collectibles, such shoe offspring can be secured, purchased, and sold on the blockchain.
Gucci: This brand has already shown its first interest in developing NFT Solutions with its eCommerce platform. On its app, Gucci recently launched a pair of digital-only sneakers. The brand is collaborating with trading platforms to allow customers to trade releases on those that have been approved. Gucci has already tried out a digital try-on to leverage the AR and VR trend, and a digital-only release is possible.
NBA Top Shot: Sports enthusiasts may be getting used to the NBA and their “NBA Top Shot” project. In this project, fans can trade NFT video highlights in the same way they exchange rookie cards thanks to a cryptocurrency-based collectibles project. There are already hundreds of thousands of dollars in registered transactions for tokenized, one-of-a-kind moments in NBA history.
4. Wrap Up: NFT Solutions Can Be The Future Of eCommerce
Some industries have already adopted non-fungible tokens and the eCommerce sector would definitely follow this trend to become a more lucrative industry in the near future. These tokens can set up their significance in the eCommerce sector through frequent transactions, consistent exposure, and real-world demonstration of their features.
After gaining an understanding of some NFTs' inevitable use in the eCommerce industry, some businesses/ brands/ organizations may raise some questions related to “How to find the best NFT Marketplace Development Company?” or “Blockchain Development - Who should I hire?”. As a leading Blockchain Development Services with headquarters in Vietnam and international offices in the US, Australia & Japan, SotaTek has 6+ years of experience offering NFT Development solutions for worldwide clients. Therefore, if you want to get advice on how to unlock your true potential in eCommerce, just contact our NFT experts. We were pleased to serve you.