Many investors these days might want to get in on the action without much of a clue about NFTs. Those who want the concept behind an NFT explained may soon simply look at a brand’s story.
Non-fungible tokens (NFTs) are gaining traction through collections of digital-first artefacts, with over $1B in value transferred in August 2022 alone. While the pricing of individual NFTs change, fascinating applications for the technology continue to develop, and the foundation is being set for the long run.
This new tool has enormous potential for commerce with its deeper and more dynamic customer engagement and new revenue streams. Particularly in sectors like music, gaming, art, and sports, NFTs appeal to merchants, collectors, customers, and talent. They have developed into an excellent way for people and companies to take advantage of these special digital assets, engage customers, and possibly generate revenue while innovating ahead of the curve.
So, what are the different ways to integrate NFTs into your eCommerce? Here we go:
Research and development
Some of the biggest businesses today are eCommerce. This sector has altered consumer purchasing behavior and is expected to keep doing so in the future. Similar to how eCommerce reinvented the way people shop, NFTs attempt to reinvent both the idea of ownership and the way that goods are consumed. Aspiring eCommerce businesses can now take advantage of the exciting NFT industry to further their objectives. NFTs and eCommerce can be combined to bring about a high level of financial value by connecting the brand experience to a sense of product scarcity.
Although the majority of the uses for NFTs are in digital art or collectibles, the term may start to appear in a wide range of use cases soon. If you are a bit late to the NFT space but are motivated to disrupt the market, you just might find that NFTs for eCommerce are ripe for growth.
It is crucial to obtain client insights when conducting research and development. Businesses can provide certain NFT holders unique rights to vote in a brand’s product development roadmap or use NFTs to reward customers for taking part in surveys and beta-testing.
Creating buzz around new products is an essential part of the sales and marketing strategies. Giving early access to NFT tokens could help create hype and obtain fantastic visibility at launch. Your brand could establish a strong base of early adopters.
Shopify now enables retailers to sell NFTs directly through their shops. It’s much easier than having to mint and sell NFTs through a third-party marketplace. The first team to accomplish this was the Chicago Bulls, who offered NFTs featuring the group’s iconic six World Championship rings.
The first widely used case for NFTs was as digital collectibles. These allow businesses to produce and market digital versions of their most well-liked products to their most ardent customers.
One already classic example is the acquisition of Rtfkt by Nike in 2020. The firm produces NFTs of sneakers and other collectibles. To spice up things, Nike has submitted trademark application suggesting it intends to market NFTs of its footwear, apparel, and other products imprinted with the swoosh emblem.
Soon after, they introduced a virtual playground where players could outfit their avatars in Nike clothing on the free online game platform Roblox.
eCommerce firms are advised to simply keep their minds open to new projects and new ideas because the eCommerce and cryptocurrency spaces evolve so quickly.
The NFT wave has also swept through the music business. Over the past ten years, the industry has undergone a significant transformation as streaming services replaced CDs and digital downloads. A broad list of middlemen, including record labels, streaming services, and advertising agencies took a significant portion of the pie. The artists’ profit margins were greatly reduced as a result. With NFTs, it’s turning different. They allow musicians to sell music in the form of fractionalized tokens directly to their customers.
Music NFTs have been sold by Deadmau5, Grimes, 3Lau, Jacques Greene, Tory Lanez, and Kings of Leon straight to their fans. While some have produced short audio loops accompanied by visuals or video snippets, others have marketed whole tracks. Artists are once again in charge of their branding and music thanks to NFTs, resulting in stronger communities.
Gamers already purchase digital skins, weapons, collectibles, maps, and a plethora of other goods every day for their preferred video games. Thousands of dollars are paid for some of these products. The only problem is that, before blockchain technology took off, all data generated and in-game currency won were exclusively used within the game platform.
The creators of the game maintain ownership rights to such objects. All in-game items that you have accumulated while playing are lost permanently if you stop playing a particular game, the game’s servers are compromised, or the game’s developers decide to shut down the game’s servers.
What if you could keep those virtual objects and use them in future games or even in a virtual museum? Online gaming has become more decentralized by including NFTs, allowing players to move and use their winnings or purchases from one game to another. Or, imagine receiving benefits from innovative eCommerce partnerships with games.
Loyalty and rewards
Building a community is crucial for online brands, but rewarding our best members is even more important. NFTs offer a creative method to craft reward programs – they can give members-only access to things like discounts and special offers while making money from the NFT itself. Owners of NFTs can make money by renting them out, and they can get paid royalties whenever resold.
The blockchain-based online travel agency Travala is a great example. Users of their NFT-based travel rewards program can join the Smart Diamond membership club. The Travel Tigers collection, which Travala says is the first of a series to be distributed on the Ethereum chain, consists of 1,000 distinctive and randomly produced NFTs.
Enhanced consumer experience
In 2021, providing excellent customer service might be something that people expect from brands. Some companies want to achieve even more and onboard new customers much easier. Chris Cantino (co-owner of Color Capital) has suggested using NFTs to make consumers become brand advocates. Customers might, for example, be rewarded with NFTs in exchange for welcoming newcomers to the community or even guiding newcomers, cutting down on support costs for the business. Compared to a brand employee performing the same thing, this may have an enormously greater impact.
The capacity of NFTs to create communities may be their greatest advantage. NFTs essentially stand for ownership. They make it possible for regular people to own an item from their preferred brands. NFTs can encourage people to band together to work on certain projects if they share a similar passion or interests.
NFTs are now being used to carry out social undertakings and humanitarian endeavors. NFTs made a significant contribution to the growth of numerous interest groups and online communities, including fan sites, artisanal markets, and political movements. One of the current community initiatives out there is Gary Vee’s “VeeFriends,” which gives hundreds of NFT purchasers access to Gary Vee in several ways.
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Are you looking to give new utility to your NFT collection? Or maybe you are a brand looking to explore collaborations with NFT Artists and Collections?
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