The new phase of the Internet is set to roll out with Web3, which seeks to have decentralization at its core. Prevalent issues in Web2, including data privacy, security, and censorship, are expected to be solved by putting people in control of their own data.
With the promise of faster and safer transactions and more accurate data storage with developments in blockchain technology, Web3 is widely expected to bring a host of benefits for transforming the eCommerce sector.
Read on to find out the 7 impacts of Web3 on E-commerce platforms in the coming years:
7 impacts of Web3 on E-commerce Platforms
1. Web3 Makes Your Life Easier
Web3 is widely touted to bring the dawn of the next generation of the internet as a new iteration to Web2 that we are used to nowadays. Bringing free-to-use and open-source information, decentralized digital space, monetary systems, transaction information that are unique and secure, and many other features.
Self-executing codes that are expected to revolutionize society in the coming years will also fundamentally alter the notion of trust in business. Shopping things online will become much faster and systematized with reduced errors and disruptions, no chargeback fees, and generally less fraud online.
Payments in cryptocurrencies are expected to be commonplace which will make transactions faster and more convenient. In the same way, Web2 revolutionized the internet bringing people closer and growing businesses, Web3 is expected to be the next big upgrade for a lot of things combined with the development in the field of VR/AR and the metaverse.
2. It Could Speed The Shift From Traditional To Online Merchants
A few years ago transactions were very slow with hectic paperwork that were both time-consuming and bad for the environment. They were also prone to human errors and usually required third-party interventions.
Advancements in blockchain technology have helped streamline and automate most of these processes by increasing efficiency and speed. Now transactions are recorded in a single digital decentralized ledger that can be shared between all parties. It’s easier to trust one another without multiple intermediaries and the clearing and settlement processes are also done faster.
Web3 will increase the efficiency of the eCommerce sector by cutting costs and eliminating wasteful charges like crime and transaction fees. It makes financial management easier and also simplifies the process of investing om other cutting-edge fields.
Analysts envision a future where consumers will most likely buy products in webshops through innovative, contract-enabled, and distributed applications (dApps) over the blockchain.
3. It Increases Subscriptions Popularity
Customers are expected to be more trusting of Web3, which makes it easier for them to subscribe to its services. Including quick and efficient premium charges for the services of your company will guarantee that you are ready to make use of Web3’s potential.
It can potentially alter the way loyalty programs are made and run. Brands can monetize their services into sustainable revenue streams for all eCommerce purposes. As it becomes easier to keep track of individual purchasers they can be allotted appropriate incentives and loyalty points to keep their business.
With the advent of numerous advantages such as increased trustworthiness and discretionary loyalty points, increased brand loyalties are expected. Many clients may however showcase reluctance when signing for long-term commitments. But their concerns will disappear if the steps are simplified and guarantees are readily available at the right time.
4. Web3: Using Common Experiences To Form Communities
Forming communities from common experiences is going to be widespread in Web3. One way this is ensured can be assessed from the expanding concept of POAP. POAP stands for “Proof of Attendance Protocol” which is how innovators are expanding NFTs. The core idea behind it is to turn participation at events into NFT assets. You can create communities based on badges as visual signifiers of the protocol which can be scanned like a QR core IRL and receive an NFT memento that serves as an admission sign into online communities.
Some of the biggest companies such as Nike, Taco Bell, Coca-Cola, etc have all invested in the booming NFT marketplace and are striving to build online communities of digital art holders who get access to events, meetups, interactions with celebrities, and special offers. Some companies have launched their own NFT art which is often tied to fundraising campaigns, while others are investing in blockchain technology. The fact that the biggest corporations are taking it seriously shows the potential for excellent business solutions available with Web3.
5. Web3 Offers Benefits To Everyone
It is evident that most businesses strive to cut costs as a top priority in their operations. With Web3, organizations will no longer have to pay intermediaries or third-party vendors to verify trading partners. It will no longer be a requirement to go through countless documents manually before finalizing a transaction. Storing records will also become easier, as everyone will have one copy that will be permanent.
ECommerce companies will be able to accurately track the supply chain using blockchain technology. It will also allow them to ensure vendors are adhering to the agreed criteria and are not substituting products without giving prior notice. Transparency will be maintained throughout the various processes.
Customers, and people in general, will have access to a faster and decentralized form of the internet that will not track user data for selling it to third-party dealers. They will also experience far more secure web surfing and enjoy the benefits of anonymity for a multitude of transactions on the web.
6. Brands May Easily Meet And Exceed Consumer Expectations
One of the biggest appeals of NFTs is that it allows building online communities of digital art holders who are giving member perks such as real-life events, interactions and meetups, and special offers on their products. Big corporations like Nike, Taco Bell, and Coca-Cola have invested greatly in the booming NFT markets. Many have launched their own NFT art, and others are investing in new technologies related to blockchain. Reddit uses Web3 and blockchain technology to enable users and contributors to own parts of the communities they are part of. Three kit helps brands deliver eCommerce experience in 3D and have recently debuted its ability to offer product NFTs for their brands.
Customers are found to enjoy engaging with brands like this across multiple channels. Omnichannel marketing is known to increase customer retention with ninety percent higher retention rates than conventional single-channel marketing according to reports.
With the advent of Web3 personalization options, omnichannel marketing will be greatly enhanced to provide unique experiences for customers with AI-powered customer avatars.
7. Web3 Improves Your Online Shopping Experience
In the very near future, consumers are expected to buy products from online shops using innovative, contract-enabled, and distributed apps called decentralized apps or dApps over the blockchain network. These transactions will be more secure and are executed by automatically executing codes known as smart contracts. Smart contracts have already begun to be widely used for software development projects and other kinds of business deals. They greatly reduce fraud, chargeback, and returns while upholding trust in the eCommerce industry.
Again, with faster transactions and seamlessly executable contracts, the online shopping experience is expected to be improved with Web3.
Anna Smith is a blockchain expert and crypto enthusiast with over 5 years of experience in the industry. She is the author of the best-selling book "Cryptocurrency for Beginners" and a regular contributor to leading industry publications. In her free time, Anna enjoys staying up-to-date with the latest developments in the crypto world and participating in online forums and communities. She is also an avid supporter of cryptocurrency adoption and believes in the power of decentralization to shape the future of finance.