For the uninitiated, web3 may sound confusing (and to be honest, it kind of is), but you may know more about it than you think. Cryptocurrency, NFTs, the metaverse, virtual reality—these buzzy concepts are just some that distinguish web3 (also known as Web 3.0) from the version of the internet we’ve come to know. And all of those things are poised to become increasingly important when it comes to the future of e-commerce and the way products are bought and sold online.
However, both web3 and the metaverse are in the early stages, so there are still a lot of questions about just what they are—and how they will affect your business’s e-commerce strategy in the short and long term. Here, we’ve put together a primer to help your brand navigate the future of e-commerce and web3.
- What Is Web3? For background, web1 is the internet at its most basic, while web2 is the second phase, heralded by the advent of social media. This brings us to web3, which will be built on blockchain, as opposed to a centralized database—and is said to be more secure. According to Forbes, web3 is “currently a work-in-progress and isn’t exactly defined yet. However, the main principle is that it will be decentralized—rather than controlled by governments and corporations, as is the case with today’s internet—and, to some extent, connected to the concept of the ‘metaverse.’” Read more in Forbes.
- How Will Web3 Impact E-Commerce Strategy? For starters, you and your company will likely be much more comfortable with the NFT market, and customers will increasingly make purchases using the blockchain rather than traditional methods of payments. According to Inc., “In the future, every product bought or traded online could be a unique NFT token, which could easily be used to buy other products from any company across the internet.” Read more in Inc.
- Is There Selling Potential in the Metaverse? As French fashion photographer Hugo Comte believes, there’s endless potential. Reading about Comte’s virtual realm called Nikita World, set to launch in June, we started to understand and visualize how fashion-image makers will be able to take their art to the next level. Creatives like Comte will have new ways to deepen relationships with their fans. Comte has even created a new kind of currency in his ‘world’, which his fans can earn through engaging in his content. These unique digital tokens can then be spent on things like masterclasses and digital clothing. As market leaders like Gucci and Balenciaga enter this space, this article also helps us understand how individual creators may evolve and grow their own potential within the Metaverse. Read more in Business of Fashion.
- How Is Artificial Intelligence Transforming E-Comm? AI can sound intimidating, but the truth is it’s already in practice. (For instance, ever asked Alexa to place an Amazon order? That’s AI at work.) From customer service chatbots to intelligent product recommendations, AI has become an integral part of the online shopping experience for both consumers and retailers. Read more on Medium.
- Can AR Make Virtual Clothing Try-On a Reality? Another step forward for fashion retailers in particular is the potential for virtual clothing try-ons—which, if done successfully, can help sell real-life products. According to research from Shopify, “the use of 3D and AR [in e-commerce] can reduce returns by up to 40 percent and increase conversion by 97 percent.” Read more in Vogue Business.
Embrace the future of e-commerce by understanding the impact of blockchain, NFTs, the metaverse, AI, and AR on your business strategy. As you consider how to implement these tools into your e-comm strategy, feel free to contact The Line Studios. We’re here to partner with your brand to create beautiful, technology-forward assets that will set your products apart as well as create innovative solutions that will help you stay relevant with your customers and grow your business.
