NFT eCommerce is steadily gaining momentum as more creators, brands, and organizations create these digital assets. NFTs represent the bright future of blockchain technology, and despite what some detractors might think, they are here to stay.
Are you interested in learning more about what NFTs are? This post will not get into the basic details of NFTs. If you want to learn more about NFT technology, check out our blog on NFT development. Our NFT development blog will give you all of the pertinent background information you need to understand the nuances of this post regarding NFTs and the eCommerce industry.
Many eCommerce businesses wonder how they can access the digital economy and benefit from NFT technology. In addition, retailers might be concerned that these HiTech digital assets will erode their customer base as consumer culture shifts to digital artwork and assets.
Don’t worry, NFTs will not replace physical items any time soon, but they are an important trend that has captured consumer attention. So, if you want to be a first mover in your industry, it is time to embrace NFT technology. This post will share how eCommerce companies can use NFTs to create additional value for their customers and position their businesses for the future.
Ways eCommerce Businesses Can Utilize NFTs
The eCommerce industry revolutionized traditional retail, but eCommerce still deals with physical products. Blockchain, cryptocurrency, and NFTs are driving a new digital economy. eCommerce businesses are part of the digital world, but there has not been widespread adoption of NFTs.
eCommerce giant Shopify now allows select Shopify Plus members to create NFT marketplaces. Other eCommerce platforms are likely to follow suit shortly. Now is the time to consider how your eCommerce business can utilize NFTs. There are several ways forward-thinking eCommerce businesses can utilize NFT technology, including:
- Product bundles
- Digital duplicates
- Pre-launch access
- Loyalty programs
- Redeemable NFTs
A great way to start creating NFTs and selling them to your customers is to bundle them with other products. For example, if a customer buys a certain product or spends a certain amount of money in your store, you can add an NFT to their purchase. Bundling has two positive effects on your business. One, it gets customers used to NFTs and builds interest in the collectibles your business is creating. And two, it gives your eCommerce store the chance to instantly gratify customers.
The main drawback of eCommerce is that customers have to wait to receive their purchases. However, bundling an NFT with an eCommerce purchase gives your customers something they can interact with and share with their friends and family immediately. This will delight customers, and it will also generate additional interest in your product offerings.
The metaverse is here, and it is growing. People buy land, wear clothes and accessories, and more in the metaverse. All of the digital assets in the metaverse are NFTs. Forward-thinking companies that want to delight early adopters of the metaverse have started offering digital duplicates in addition to the purchases customers make.
For example, if you sell shoes, give your customers a digital pair in the form of an NFT with the pair they purchase online. Global footwear and fashion brands like Nike and Gucci have already started doing this. Like the product bundle, digital duplicates give your online customers instant gratification. However, by offering digital duplicates, your business can also enter the digital asset market in the metaverse.
Eventually, once your brand recognition is strong enough, you can sell your NFT products to metaverse participants and generate additional sales revenue.
eCommerce businesses can use NFTs to offer exclusive pre-launch access and generate buzz around their new products. Getting the consumer public interested in your products and services before they are available is a trick every business is interested in. Businesses can use NFTs to give customers a sneak peek of what is to come, offer promotional content, and build interest around a product launch.
Now that businesses don’t have to rely solely on NFT marketplaces to mint and sell these digital assets, it is easier than ever to creatively use NFTs to launch new products. Like the Chicago Bulls, successful organizations have used Shopify’s new NFT features to produce NFTs around product launches and promotions.
Your business needs to have an established brand and solid customer base to take advantage of the collectible craze. However, if your business is a well-established brand, you can create collectible NFTs to commemorate special moments and delight your fans and dedicated supporters. Unfortunately, most small eCommerce businesses won’t have the brand power to interest customers in commemorative collectibles, but that doesn’t mean you shouldn’t make a few.
Collectibles appreciate over time. Maybe no one will be interested in an NFT collectible for your eCommerce store today, but who knows what consumer interest will be in the years to come. All successful businesses were once small, fledgling companies with small audiences.
NFT technology can be used to power loyalty programs in unique ways. The most obvious manner is giving loyal customers free NFTs for their continued patronage. However, savvy businesses are using NFT technology as the backbone of their loyalty rewards program. Like coffee shops and cafes, many businesses have loyalty cards that they punch every time a customer makes a purchase.
Likewise, eCommerce businesses can use NFT technology to create digital loyalty cards for their customers. Digital loyalty reward cards enhance the customer experience, cut costs for the business, and allow customers to store all of their rewards in one place and potentially even use them interchangeably on other items and services.
NFTs are digital assets, but some companies are creating redeemable NFTs that can be used for real-world items and experiences. The options here are endless. One winery sold a barrel of rare wine as a series of 300 NFTs. The people who purchased these NFTs could redeem them for a bottle of wine from the rare barrel represented by the NFT.
Creative eCommerce businesses can find several different ways to use NFTs to further their brand goals and delight their customers. Many businesses are not yet utilizing NFT technology to its full potential. If you are interested in the future of NFT eCommerce and want to know more about its possibilities, reach out to an experienced app development partner.