NFTs have become a major buzzword in recent times with the rise of Blockchain technology and the Metaverse. Almost every industry is trying to implement NFTs to innovate their operations and offerings. The capitalization of major NFT projects has increased by 2100%. This shows the remarkable possibilities of NFTs in the near future. In this blog, we are going to discuss the future of NFT in the eCommerce industry.
Let’s discuss the NFT technology before discussing the future of NFT in the eCommerce industry;
What is an NFT?
NFTs or Non-Fungible Tokens are digital assets cryptographically encrypted on a Blockchain network. However, they are very different from cryptocurrencies. NFTs cannot be replicated, divided and minted like cryptocurrencies. Thus, NFTs are quite different from Bitcoins and Ethers, they cannot be used for trading or as a payment method.
Important Characteristics of NFT
NFTs can play a significant role in the various industries with their unique characteristics. For this reason, they often become the central attraction for investors, businesses, and collectors. These are some top features of NFT;
NFTs are Authentic
Every NFT on any Blockchain must have a recognized owner. The ownership of each NFT must be verified and transferred properly.
They are Indivisible
Unlike cryptocurrencies, it is not possible to divide an NFT token into smaller assets. This feature is only possible with cryptocurrencies. Being indivisible is often regarded as one of the most important features of NFT.
NFT are Non-Interoperable
Each NFT on a Blockchain will have a different and unique value. Therefore, it is usually not possible to exchange NFTs with each other. However, this is possible when you are trading in cryptocurrencies like BTC, Ether, and XRP.
They are Tradable
You can trade NFT tokens with the help of various cryptocurrencies or fiat money. Moreover, an NFT marketplace like OpenSea could be the best place to trade NFTs.
Works with Blockchain Ecosystems
NFTs are compatible with various Blockchain standards such as ERC1155 and 721. This makes them an ideal product of Blockchain.
Due to the amazing possibilities of trading in NFTs. They provide high liquidity to investors and users.
NFT development provides huge possibilities for creativity and innovation for developers. In fact, developers and businesses can create custom NFTs for almost anything.
Impact of NFTs on eCommerce Stores
The effective use of NFTs can help businesses with efficient trading and liabilities. Moreover, decentralization and better ownership will be very impactful for eCommerce businesses. These could be the best positive impact of NFTs on eCommerce businesses.
Increasing Profit Margins
Many eCommerce businesses have drastically changed the shopping experience with many innovations and user-friendly experiences. However, the transfer of ownership of goods is still a big problem in the eCommerce industry. Creating NFTs of physical goods can drastically help businesses to change the ownership of products instantly.
The users can receive instant ownership of physical products with the help of virtual NFTs. Moreover, they will be having more trust in the eCommerce business when they have acquired an NFT for each purchase.
Better Loyalties and Rewards
eCommerce businesses have to build strong relationships with their customers. Therefore, a customer loyalty program works as a catalyst for accelerating their business. However, customers usually avoid joining such loyalty programs because the benefits are mostly in the form of offers and discounts.
NFT collectables could be very useful for making loyalty programs more fulfilling. Integrating NFTs into your customer loyalty program would provide customers with a more delightful shopping experience.
Better Authenticity Verification
eCommerce businesses often face the problem of counterfeiting and fake products. Thus, it becomes important for businesses to implement a better authenticity verification system. NFTs and Blockchain could be very realistic solutions to create a superior system.
NFTs can be used with personal signatures and deeds of ownership for the products. Moreover, by having a code with a unique value, it will be much easier to verify the authenticity of products.
Developing an NFT-Based e-Commerce Platform
Working on an NFT-enabled eCommerce platform is a very challenging and time-consuming task. Above all, these are some of the most important steps to developing an NFT-based eCommerce platform;
Hiring the Right Technical Expertise
Although you might have plenty of options to build your own development team. However, hiring a prominent Blockchain company would be the most cost-effective and efficient option to build your e-commerce store. They will have a team of expert developers, designers, QA professionals, and project managers.
Designing the UI/UX
You must give sufficient time and effort while designing the UI/UX of your eCommerce platform. It is the most important component of your eCommerce store to create a good first impression on the users.
Therefore, it would be highly advisable to think from a user’s perspective while determining the look and feel of your online store. Your design team must work with a lot of wireframes, prototypes, and user guides to finalize the best design for your target audience.
Determine the Relevant Technology Stack
When you are building an eCommerce marketplace, you have to select the most relevant technology stack to fulfil your target audience’s requirements. Above all, your chosen technology stack must provide a smooth and high-performance experience with faster page loading and the ability to handle heavy loads.
Determining the Features of Your eCommerce Store
You have to create a feature list for your NFT-enabled eCommerce store to help your customers with their requirements. These are some prominent features that you might consider including in your eCommerce store;
- NFT Showcase
- Search Engine Filter
- Product Verification
- NFT Payment Methods
- Transaction Logs
- User Wallet
Core Development of NFT-Based eCommerce Store
After choosing the necessary features for your eCommerce store, the core development process is the implementation of features and the chosen technologies into the final product. The development team must provide you with constant updates about the development process so that you can make urgent changes to the eCommerce platform.
Testing and Deploying
The development process of your NFT-based eCommerce store isn’t complete yet. Your development team must conduct multiple test cases to check the performance, reliability, security, integrity, and resilience of your NFT-based eCommerce platform. Your QA team must be proficient in handling different test cases of both manual and automated testing. Ultimately, your digital product would become more polished and refined.
This would help your business to ensure a final bug-free version that runs smoothly on all platforms. You can also create a demo version of your eCommerce and market it as a beta version to receive feedback from real-world users. It would drastically help you optimize the user experience and align your offerings with the latest market trends and user demands.
Developing a traditional eCommerce platform has become a common practice among businesses to promote their products and services with a wider market reach. However, implementing NFT into your online store would provide you with a competitive edge over others in the market.
It would be highly advisable to hire a prominent Blockchain development company to take advantage of the lucrative opportunities that come with NFTs. They will have the right professionals with extensive technical experience in Blockchain technology. Moreover, try to find a company that has a good portfolio with clients from diverse industry verticals. It will be a very cost-effective and efficient approach to developing eCommerce stores with NFT.
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