A report by Insider Intelligence says that by 2022, e-commerce sales in the U.S. will have topped $1 trillion. Another report from the U.S. Consensus Bureau News says that 13% of all retail sales in the first quarter of 2022 came from online shopping. These big numbers show that we are in the middle of an e-commerce revolution that is picking up speed as web3 lays the groundwork for an internet that doesn’t need permission and isn’t controlled by a single group. We might soon see the rise of non-exclusive, interconnected systems that any online seller or brand can use to run their business. Web3 gives brands the freedom to choose the e-commerce systems and solutions that work best for them, instead of being tied to large platforms that control sales channels, customer data, and operations.
A report by Insider Intelligence says that by 2022, e-commerce sales in the U.S. will have topped $1 trillion. Another report from the U.S. Consensus Bureau News says that 13% of all retail sales in the first quarter of 2022 came from online shopping. These big numbers show that we are in the middle of an e-commerce revolution that is picking up speed as web3 lays the groundwork for an internet that doesn’t need permission and isn’t controlled by a single group. We might soon see the rise of non-exclusive, interconnected systems that any online seller or brand can use to run their business. Web3 gives brands the freedom to choose the e-commerce systems and solutions that work best for them, instead of being tied to large platforms that control sales channels, customer data, and operations.
Even though e-commerce is growing and doing well, it still has some problems. Most of the problems come from the fact that most platforms rely on centralized financial institutions or payment gateways to do things like transactions. A centralized way of doing financial things related to e-commerce is not only less safe, but also less reliable. In a web3-based e-commerce system, all important data, including information about transactions, can be stored directly on a blockchain. Most of the problems with the current e-commerce system could be fixed by doing this. So, you could say that web3 e-commerce is disruptive and has changed the e-commerce industry.
What is it?
Before we go into more detail about web3 shopping website development, let’s take a look at the idea of web3, which is sometimes called the participatory internet.
Web2, which came before web3, has centralized data, which means that only a small number of big players own and run it. One of the people who started Ethereum came up with the term “Big Tech” to describe these big companies. This is the exact opposite of what people who like web3 imagine the digital world to be like. Web3 is a new digital universe that improves user experiences by using blockchain technology and blockchain ideas like decentralization and a token-based economy. Because Web3 is not centralized, “Big Tech” and other middlemen are not needed. This is why web3 is interesting. Web3 is not a platform where users can access the internet through centralized platforms like Google, Apple, and Facebook. It is a web architecture that puts the user in charge of their own parts of the internet.
Why Web3 e-commerce is good for businesses
Web3 and related technologies like non-fungible tokens (NFTs) and cryptos are already having an effect on e-commerce, and this is likely to continue in the future. After all, there are more and more ways to use blockchain as businesses of all sizes and types come up with new ideas at a rapid pace. Let’s look at some examples from the real world to see how this changes the way e-commerce works.
Finances without a central bank or a crypto wallet
In web3, you can pay for things on e-commerce sites like Shopify and WooCommerce with cryptocurrencies.
Markets with no one in charge
Web3 will make markets that don’t have a central point of control, so users can choose what they want to be made. It will be a community-run market where users will have full control and be able to trade freely.
Trustless e-commerce based on the blockchain
In the near future, it’s likely that people will use innovative, contract-enabled apps called decentralized apps or dApps over the blockchain to buy things from online shops. These transactions will be permanent, can’t be changed, and can be carried out by self-executing codes called “smart contracts.” This will lower the number of scams, chargebacks, and returns. Even though trust is still the most important thing in e-commerce today, web3 will put less emphasis on it because the blockchain makes it possible for transactions to happen without trust. It will be the norm to pay for things online with cryptocurrency, and it will be the same as using credit cards or PayPal.
E-commerce loyalty reward programs based on NFT
In e-commerce, NFTs are used to make money from loyalty programs. Customers who use these programs get points for every purchase they make. These points can be turned in for products, discounts, or even bigger bonuses. NFTs make it possible for companies to give out better loyalty rewards. Companies can now give customers tokens based on NFTs that have a set value instead of just giving them points.
