Unless you work in a mobile app development company or are interested in the latest cutting-edge technology, you are likely wondering what the concept of Web3 eCommerce website development entails.
App and web development companies have been excited about Web3 and other emerging technologies like blockchain for a few years. While you will find development services for Web3 eCommerce, we are currently in Web2.
However, if you operate an eCommerce business, now is the time to begin considering the different development solutions that can be employed to position your business for the future of Web3 eCommerce.
This post will explain what Web3 eCommerce website development is and why eCommerce businesses should be excited to embrace these cutting-edge technologies. However, before we explore Web3 eCommerce web development, we need to understand what Web3 is.
What Is Web3?
It can be challenging to pinpoint a definition of Web3 since many of the key technologies and development solutions are in their infancy. However, the primary hallmark of web3 is decentralization.
Web3 will be built on a foundation of decentralized applications that prioritize interactions between users and remove control of the World Wide Web from a few centralized tech companies.
Web3 will be built upon blockchain-based technology and utilize cryptocurrencies, token economics, and smart contracts. In addition, innovative technologies like Artificial Intelligence, Machine Learning, and Virtual Reality will play a vital role in Web3.
Currently, the Internet is in its second generation, Web2. Web2 is characterized by centralized data that a few big tech and development companies, like Apple, Google, and Meta, control.
If we are still in Web2, why should businesses begin exploring Web3 eCommerce website development services?
If your business wants to gain a competitive advantage by being a first mover or early adopter in the eCommerce industry, it is wise to partner with a development company that is already exploring Web3 eCommerce solutions and decentralized eCommerce platform development.
The Impact Web3 Will Have on eCommerce
The excitement over Web3 is not unanimous among tech experts and development companies. Some believe Web3 is a niche concept that will have little impact on the general market. However, others believe that Web3 will fundamentally change the Internet.
If Web3 is massively transformative, like many experts think it will be, it will significantly impact eCommerce. While many of the cutting-edge technology solutions Web3 will rely on are still emerging, we can look at what we know about existing Web3 technologies and examine their potential impacts on eCommerce.
Let’s explore how Web3’s latest technologies will impact eCommerce, including:
- Blockchain
- NFTs
- Cryptocurrencies
- AI
- Metaverse
- dApps
Blockchain
Perhaps the most significant impact blockchain technology will make on eCommerce is in logistics. Ledgers are vital to logistics. Logistics is critical to world trade. Blockchain can eliminate the need for a centralized logistics ledger.
If centralized ledgers are eliminated, eCommerce businesses no longer have to partner with expensive third-party ledger providers. In addition to eliminating third-party intermediaries in logistics, blockchain technology promotes cost savings by reducing or eliminating duplicate tasks along the supply chain.
However, the benefits of a decentralized ledger go beyond cost savings. Blockchain also adds greater transparency, accountability, and security to logistics and supply chains.
If a customer has an issue with a product they purchased from your business, blockchain technology makes it easy to trace that product through the supply chain and find out where it occurred.
NFTs
NFTs have gotten a lot of attention due to the high prices some of these digital assets have secured. However, NFTs have exciting applications in Web3 that go beyond asset trading and collectibles.
Perhaps the most exciting application of NFTs is identity management. Since NFTs are unique tokens, they can be used like an ID or passport to interact with specific brands. Forward-thinking organizations are utilizing NFTs as digital brand loyalty cards.
NFTs allow eCommerce businesses to connect with their customers in new ways that add value to customers by offering them digital ownership of digital collectibles and brand-related assets.
Another way eCommerce websites and brands are using NFTs is through tokengating. Tokengating limits access to parts of your website or products to customers with a particular NFT.
Adidas has experimented with tokengating when they partnered with Bored Ape Yacht Club. Owners of specific NFTs were given access to exclusive physical products produced by the famous apparel company.
Cryptocurrencies
One of the earliest examples of Web3 and blockchain is cryptocurrency. Crypto has been widely examined and discussed in the media due to currency trading, but the essential function of cryptocurrency is to make secure payments.
As a result, cryptocurrency will be essential to Web3 eCommerce. There are several benefits of accepting cryptocurrency payments from customers. Adopters of cryptocurrency have more trust in this technology than traditional payment gateways and will use it to make larger purchases.
By accepting a more comprehensive range of payments, your business can expect to make more sales. Additionally, cryptocurrency reduces the friction typically associated with digital payments and makes it easier for customers to make purchases, especially large ones.
Cryptocurrency also makes it simpler for eCommerce businesses to implement buy now pay later features. Introducing new financing options is another great way to make more sales, especially large sales that consumers might otherwise shy away from.
AI
AI and Machine Learning tools are getting more sophisticated, and they are being used in a variety of different applications. You might think data analytics will be less valuable when users own their data in Web3. However, AI can still be used in Web3 to learn about buying preferences.
eCommerce brands can use Artificial Intelligence and Machine Learning algorithms to identify patterns in their data and optimize campaigns and product offerings to increase sales and conversions.
AI can be utilized to analyze first-party data to learn more about customer preferences. There are several different ways AI can be used to generate insights that your business might have missed.
In addition, AI-powered chatbots can help your brand deliver great customer service at scale and enable your brand to communicate with customers 24/7.
Metaverse
The Metaverse attempts to blend the lines between the digital and physical worlds. Augmented Reality and Virtual Reality play a big role in creating new, immersive shopping experiences in Web3.
eCommerce brands need to take note of these technologies and trends and embrace the Metaverse. While widespread adoption of the Metaverse has not occurred yet, the future of technology, entertainment, and the Internet is moving towards the Metaverse or something conceptually similar.
Businesses that want to position themselves for long-term success should begin exploring how they can use Augmented Reality and Virtual Reality in their existing apps and websites. In addition, exploring the Metaverse and what it would take to begin selling digital and physical products on the platform is also important.
dApps
Decentralized apps (dApps) allow users to download apps without an intermediary platform. dApps can be beneficial to eCommerce businesses in several ways. Decentralization promotes greater security which can help to build customer trust, especially when selling expensive items.
In addition to stronger security, dApps promote faster payment processing by using cryptocurrency and removing the need for bank clearances. Plus, decentralized apps promote user involvement and allow users to have a say in how the app develops as it ages.
Decentralized apps are driving the decentralization of eCommerce. With the self-executing code of these applications, many believe that eCommerce businesses will enjoy fewer product returns, instances of credit card fraud, and chargebacks.
Final Thoughts
Web3 is changing the landscape of eCommerce in a significant way. Like any innovation, Web3, like cloud computing or the Internet, will take time to catch on, but a change in how people browse, shop, and interact online is coming soon.
To learn more about Web3 eCommerce website development, contact a HiTech app development partner like Koombea.
