Cryptocurrency in Retail and Ecommerce: Changing the Landscape
Cryptocurrency and NFTs in retail are both major parts of decentralised ecommerce. With these technologies, they are transforming the industry as we know it, from transaction security, to efficiency, to shopper incentives. A partnership between blockchain and ecommerce has the potential to transform how brands conduct their transactions online and how customers experience shopping forever.
But before we dive into this initiative, it’s important to learn about the concept of decentralised ecommerce, as well as the benefits of a Web3 marketplace to the retail industry.
What is decentralised ecommerce?
The concept of decentralised ecommerce pertains to a model where an environment of mutual trust between parties is created during a transaction. This also means that, rather than the transactions being overseen by a single point of authority, they are distributed in a shared database as a form of transparency.
Part of this concept is the existence of various Web3 marketplaces, which are avenues for open and decentralised buying and selling within the blockchain. Some examples of these marketplaces are OpenSea, Rarible, and Origin Protocol. The benefits of a Web3 marketplace are also the key strengths of decentralised ecommerce.
Benefits of Web3 marketplaces and cryptocurrency in retail
While blockchain and ecommerce coming together is still a new concept for many people used to the traditional model of retail shopping, it’s slowly gaining traction. Whether it’s through brands that accept crypto payments or specifically-launched Web3 marketplaces, many brands are stepping into this new space and benefiting greatly through the following factors:
Efficiency in payments
Part of the benefit of cryptocurrency payments is their improved speed, lesser cost, and ease of use. For international payments, this is quite beneficial as blockchain is far quicker in processing such transactions than traditional bank transfers. Without the need for foreign transaction fees, crypto makes for an enticing payment option for customers.
Beyond the benefits for customers, offering the opportunity to pay via crypto is also beneficial for brands in expanding their customer base. While the ability to accept crypto transactions would require set-up and learning on the brand’s end, providing this option can do wonders in enhancing the customer’s experience with your brand and appealing to more customers.
Quick and secure transactions
By using cryptocurrencies to make purchases, your transactions are safe and secure. This is because each transaction is recorded on an immutable ledger that tracks everything, and helps you protect your wallet from scams and frauds. Additionally, crypto is pretty much impossible to counterfeit due to the immutable nature of the blockchain.
In comparison to other traditional payment platforms such as credit cards, crypto also gets rid of fraudulent chargebacks, adding to the secure aspect of this currency on the blockchain. Crypto does have its own set of concerns to be considered, but its removal of common points of vulnerability in security make it a good alternative to traditional payments.
Finally, through smart contracts, the exchange of cryptocurrency for goods is both quick and secure, ensuring a smooth and safe transaction every time.
Various shopper incentives through loyalty programs
Traditional payment methods offer perks through loyalty points, which are points users earn through spending more and fulfilling certain conditions. These points can be used to redeem items, as well as avail certain financial perks and services. For example, using certain credit cards can earn users more points and other benefits such as discounts or freebies on their next purchase.
With cryptocurrency rewards, they fulfil similar perks, but have key differences. For one, crypto rewards can shift value depending on the market unlike the more static loyalty points. When market demand shifts positively, you can take advantage of it for your investments.
Another benefit of crypto rewards is the security, as loyalty programs often entail giving brands personal information that they can use to sell your data to third parties for advertising purposes.
Innovation and getting ahead of competitors
Finally, blockchain and ecommerce coming together paves the way for rising above your competitors. By taking advantage of these new innovations, the implementation possibilities are endless for your business. In turn, you can offer benefits that your competitors may not be considering, boosting trust and loyalty from your audience in the process.
For starters, think of how NFT for ecommerce can be used for the benefit of your brand. The potential of NFTs in ecommerce means all sorts of advantages, such as a streamlined sales process, a place in the metaverse, and a loyal community built around your NFT launch. Crypto also carries the same perks. With these technologies, your ecommerce brand can lead the charge to the future and not be left behind!
By integrating cryptocurrency and other blockchain technologies to your ecommerce business, you’ll greatly benefit your customers and your brand with secure transactions, worthwhile loyalty programs, and convenient payment processes. That being said, it can be confusing to navigate and implement all of these without an expert by your side.
At No Standing, we offer services such as Web3 marketing and Web3 ecommerce platform development to beef up your brand’s online retail presence. Talk with us and let’s discuss how we can help your ecommerce sales through Web3 initiatives!