In Web 1.0’s day, the World Wide Web was a game-changer on par with the printing press. Suddenly, anyone accessing a web server could release a simple website.
With Web 2.0 came more complex platforms, allowing users to promote their online shops through social media or link to products they liked.
Web 3.0 is the next generation of the World Wide Web, and it is based on decentralized systems and distributed ledgers like cryptocurrencies and blockchains. Web3 is accelerating the transition to open-source software based on blockchain technology towards a more open and trustworthy internet.
Can Web 3.0 make the e-commerce industry even more decentralized? In other words, the modern consumer is treated like a king or queen.
There will be no major gatekeepers to limit the reach of marketers. Ads will no longer be forced upon consumers; they will be invited.
Vanderhook is optimistic about the impact of recent innovations on the relationships between businesses and customers, calling Web 3.0 a “moment of reset between consumers and brands” and a “tremendous opportunity for brands to connect.”
Okay, but what will the actual results of this change be? Here is how we anticipate online shopping evolving due to Web 3.0 and how web3 ecommerce website development will help.
So, What is Web3 Technology?
Web 3.0 is the most recent iteration of the World Wide Web. The third version, based on complex software like AI, will enter the battlefield after 2.0. It aspires to provide a dependable and data-driven user interface accessible to all. Web3 is anticipated to use blockchain technology, the metaverse, and the Semantic Web.
Users are likely to be perplexed because most of Web3’s features are already available in Web 2.0. So, what’s the latest and greatest feature?
There’s more to it than just the fact that these traits are present in today’s internet generation and are spreading quickly. The widespread interest in blockchain technology has led to an increase in the sophistication of the 3.0 version. Web 3.0 is based on decentralization, which is the primary difference between Web 2.0 and Web 3.0. Users will fully control their online experience and the content they create.
Generally, Web3 Is Made Up of Three Specific Components or Innovations:
Blockchain: Blockchain technology is a distributed public ledger that can be used to verify ownership without exposing individual details. Before the advent of blockchain technology, establishing rights was done through centralized database ledgers. To verify ownership without relying on a centralized database, blockchain links together “chunks” of data.
Cryptocurrencies: Cryptocurrencies, or “Crypto” for short, are digital currencies stored on the blockchain. This makes online transactions and purchases more secure and decentralizes financial ownership.
NFTs: Non-fungible tokens (NFTs) are digital “receipts” in a blockchain system. When it comes to digital assets are used to keep track of who owns what.
- Most data is public domain and available without charge.
- There is no duplication or falsification of data during a transaction.
- Information belongs to the individual who created it.
- Bitcoin and other cryptocurrencies have supplanted the old monetary system, which was based on DeFi.
- Any dealings and transfers of ownership are conducted in complete secrecy.
How AI/Machine Learning Will Impact Ecommerce
In Web3, consumers are given greater control. However, e-commerce companies can still discover additional insights about their customer’s preferences.
Making the most of your knowledge requires using AI.
AI can analyze your e-commerce data for patterns that can inform the development of new advertising initiatives. At the same time, it can provide information that boosts sales. Analyzing your first-party data lets you gain insight into your target audience. Web analytics and surveys are just two channels AI can use to unearth information your team may have missed.
Artificial intelligence (AI) can provide useful information for improving product features and enhancing internal business processes. As a result, the shop is better equipped to introduce innovative new products and reduce the time employees spend on repetitive tasks thanks to automation.
Getting Ready for Web3 Electronic Commerce
Successful marketing relies on appealing to customer values, the significance of a committed community, and the target audience’s enthusiasm. Here are some steps you can take right now to get ready to implement this cutting-edge technology into your online shop:
Payment Accepted in Cryptocurrency
The first is that 40% of crypto buyers make their first purchase with a given company; the second is that crypto buyers spend twice as much as credit card buyers.
This demonstrates that new users have a high degree of faith in the safety and convenience of cryptocurrency payments.
The sooner you accept cryptocurrency as payment, the sooner you will be able to attract new customers, turn them into devoted brand advocates, and increase the average transaction value.
Try Gamifying Your Next Shopping Trip
To get a younger audience interested, you need only take a tentative first step into the water. NFTs can be used to access premium features in various stores. There will be more of a sense of interactivity, and interest will be generated, but it won’t feel like traditional advertising.
NFTs and Customization
The role of NFTs in the metaverse is crucial because they enable users to express themselves through avatars, art, and the newest fashion trends. Creating NFTs that feature your products is the first step to becoming a marketing pro in the metaverse.
Making a cool NFT of your sneakers, as Nike has done, or a luxury handbag, like Gucci, and releasing it in the metaverse is a great way to demonstrate your company’s familiarity with cutting-edge technology and awareness of current consumer trends. It also provides valuable advertising for your products.
Engaging the Metaverse
You already understand the significance of providing customers with unique store services to increase sales. In the metaverse, nothing will be different. Customers will have a reason to interact with your web3 presence if you provide them with metaverse experiences, such as product previewing with customization that can be paired with customer avatars.
Use Cases for the Blockchain in Web 3 Commerce
- Using blockchain for inventory management, stores can track sales and restock when the stock drops below a certain level, similar to how shopping carts work.
- High-quality photos and videos, along with other information crucial to an e-commerce website, are purchased by the store owner at great expense but ultimately become the property of the e-commerce platform. On the other hand, Blockchain grants merchants complete ownership of their digital storefront, product photos and videos, and customer reviews.
- Using blockchain technology, businesses can send tailored promotions and loyalty rewards to their clientele.
- A blockchain can safely record information about a customer’s tastes and buying habits.
- Blockchain technology allows stores to create secure customer authentication systems with encrypted digital identities. This will enable them to safeguard personal information and enhance identity management.
- Blockchain technology allows e-commerce businesses to monitor their supply chain.
- Blockchain technology makes it simple and secure for stores to keep track of customer warranty information.
Future of Web3 e-Commerce
Companies that utilize Web3’s potential for individualized customer connections will benefit from decentralization. To maintain their relevance over the long term and appeal to a larger customer base, more e-commerce brands are opting to invest in the DTC model.
The customization options available via Web3 could be what sets apart omnichannel marketing for individual buyers. With the help of customer avatars powered by AI, they will receive a more customized experience.
The emphasis of Web3 will shift from advertising to collaboration. Potential customers in the web3 ecosystem will be able to find you through channels like streaming audio or in-game advertising that were not as common in the web2 era.
To a large extent, Web3 democratizes the relationship between consumers and businesses. The distinction between business-to-business and business-to-consumer transactions is likely to become increasingly blurred in the future.
Jump into Web3 Today!
The transition to a digital era is well underway, and now is the time to get on board. It’s time to launch your business into the world of virtual property, NFTs, or cryptocurrency as a payment option for your online store. The internet is evolving, so we must as well.
A quick Google search will reveal that web3 is one of the simplest ways to begin expanding your brand’s presence in the blockchain industry. They require little effort to make and market. A digital storefront is more expensive to set up, while these don’t need nearly as much capital. Moreover, they can assist in expanding your brand’s reach by facilitating interaction with your target audience and partnerships with complementary businesses. Making an NFT-powered marketplace where users can buy and sell their creations can generate an entire community around your work.