According to Insider Intelligence, e-commerce revenues in the United States will likely exceed $1 trillion by 2022. According to another U.S. Consensus Bureau News research, e-commerce accounted for 13% of retail sales in the first quarter of 2022. These astonishing figures indicate that we are witnessing a growing e-commerce revolution as web3 prepares the basis for a permissionless and decentralized internet. We may soon see the emergence of linked, non-exclusive platforms that any seller or brand may utilize to fuel their company online. Instead of being tethered to monolithic platforms that dominate sales channels, customer data, and operations, Web3 enables organizations to embrace the finest e-commerce solutions and systems for their needs.
How Businesses can benefit from web3 e-commerce
Web3 and related technologies, such as NFTs and cryptos, are already influencing the e-commerce business, and this trend will continue. After all, the use cases for blockchain are proliferating as firms of all sizes and scopes innovate at a breakneck pace. Let's look at real-world scenarios to understand how this influences the e-commerce environment.
Decentralized finance or a cryptocurrency wallet
Cryptocurrencies may make payments on e-commerce systems such as Shopify and WooCommerce in web3.
Markets that are not centralized
Web3 will develop decentralized markets where people can choose what they want to be produced. It will be a community-managed market with total user control and freedom of transaction.
E-commerce based on trustless blockchain
In the near future, consumers will likely buy things from online stores utilizing creative, contract-enabled, and distributed apps are known as decentralized apps or dApps on the blockchain. These transactions will be immutable, trustless, and carried out by self-executing programs known as smart contracts. This will cut down on fraud, chargebacks, and refunds. While trust is today's primary motivator for e-commerce, web3 will place less importance on trust since the blockchain ensures trustless transactions. E-commerce purchases utilizing bitcoin will be the standard, much like credit cards or Paypal.
E-commerce loyalty incentive systems based on NFT
In e-commerce, NFTs are used to monetize loyalty programs. Customers are rewarded with points for each transaction, which may be redeemed for items, discounts, or even larger prizes. Companies may now give more significant loyalty benefits thanks to NFTs. Companies may now offer consumers NFT-based tokens with specified values rather than random points.
Customer encounters in the Metaverse
There is no one description or model of what the metaverse will look like, as there is with many emergent technologies. The metaverse is a synthesis and extension of several new technologies, including AR/VR, blockchain, and cryptocurrency. The metaverse is a universe of 3D virtual worlds continually expanding and developing their economies. Within the metaverse, e-commerce firms face an exciting challenge and the potential to offer unique customer experiences.
NFTs for community development and monetization
POAP, or Proof of Attendance Protocol, demonstrates how entrepreneurs extend NFTs, which is exactly their business plan. POAP's fundamental concept is to convert event participation into NFT assets. The POAP is graphically represented via badges. You might scan a QR code in real-time to acquire an NFT souvenir that grants you admission to an online community.
How do you get your store ready for Web3 E-commerce?
Here are some strategies for preparing your brand for Web3 commerce:
Token-based Commerce:
The first approach is to instill excitement in individuals about blockchain and NFTs. Token-gated commerce connects these technologies with e-commerce. It gives clients a cause to acquire your NFTs and become more devoted to your business.
Metaverse Experiential Learning:
We're all aware of tailored shopping experiences' influence on consumer loyalty, and the metaverse is no exception. Customers will have a motive to interact with Web 3.0 if they can view items in a separate world with their avatars. Metaverse E-commerce refers to the use of Metaverse for an eCommerce shop.
Create a gamified purchasing journey:
Engaging a younger audience in the game entails dabbling in the water. NFTs can help you uncover these aspects of the purchasing process. It will be more engaging for users than standard advertising tactics.
Accept cryptocurrencies as payment:
Cryptocurrency is a jargon that may soon be the future of payments. Accepting this will give you a statistical edge in obtaining a higher value for your order. It will help boost client trust in your brand.
Conclusion
Web3 is a decentralized web version that claims to remedy issues in previous web versions such as web1 and web2. With AR and VR growing more popular as experience-enhancing technologies and NFTs continue to grow, new e-commerce standards with a wider variety of alternatives for customers may be expected. Modern companies want to be available to customers wherever they shop: online, in-store, or social media. With the connectivity provided by web3, omnichannel strategies will be even more efficient, as businesses will be able to integrate all of their sales channels and operational systems to create seamless e-commerce experiences for their customers. Web3's intrinsic attribute, decentralization, enables companies to run their apps without a single point of failure and benefit from the solid technological stack of blockchain. Web3 will surely give consumers and companies the finest e-commerce experience conceivable.