The Future of E-commerce: Web3's Impact on Online Shopping

Welcome to the future of e-commerce, where Web3 technologies are reshaping the way we shop, transact, and interact online. In this article, we will explore the potential impact of Web3 on e-commerce, highlighting the emergence of decentralized marketplaces, tokenized loyalty programs, and improved supply chain transparency. Moreover, we will provide insights into how businesses can adapt and thrive in this evolving landscape of e-commerce.

Author: Carmen Rodriguez

Decentralized Marketplaces: Empowering Buyers and Sellers

The appearance of decentralized marketplaces responds to the necessity of transparency in the markets as well as lower fees. The possibility to cut the middle man and connect buyers and sellers may not sound revolutionary, but it could save you plenty of money. What is more important is that counterparty risk can be reduced through smart contracts, which are self-executing agreements with predefined rules encoded on the blockchain. 

Let’s say that you want to buy a piece of art for your mum's birthday. Someone recommended ArtBlocks which specializes in contemporary generative art. The first benefit you will experience is that they use advanced technology to ensure the artwork's authenticity and origin, so you can be confident that you're not buying counterfeit or stolen art. Once you select your favorite artwork and do the payment the system will hold your funds until the necessary conditions for the transaction are met, providing an extra layer of protection. You can also rely on feedback and ratings from other buyers to make informed decisions about the credibility and quality of the artists. Overall, using a decentralized marketplace reduces the potential risks involved in purchasing art.

While many decentralized marketplaces primarily focus on digital products, there are exceptions like Sellitic, which caters specifically to artisans. Sellitic offers a wide range of handmade goods that are unique and carry a personal touch. By purchasing from Sellitic, customers can not only enjoy high-quality products but also contribute to local communities and sustainable practices. The marketplace connects customers directly with artisans from around the world, ensuring that purchases are made in the most ethical manner possible, fostering a direct connection between the buyer and the artisan.

Tokenized Loyalty Programs: Engaging and Rewarding Customers

The impact of web3 can also be observed among loyalty programs. Tokenized loyalty programs use digital tokens instead of traditional points or vouchers to represent customer rewards. The benefits include more flexibility and accessibility, as customers can easily store, transfer, and redeem their rewards across various partners and platforms. It provides transparency, security, and authenticity through blockchain technology, reducing the risk of fraud. Overall, tokenized loyalty programs make it easier for businesses to engage customers and for customers to enjoy and control their rewards.

In 2018, Singapore Airlines revamped its frequent flier program and introduced KrisPay, a digital wallet based on miles. With KrisPay, members could convert their miles into digital spending power, which could be used with various partner merchants. Upon launch, KrisPay partnered with nearly 18 merchants spanning different categories, including beauty, retail, food services, and gas. This allowed members to use their miles for purchases within these merchant networks, expanding the utility and value of their loyalty rewards.

Improved Supply Chain Transparency: Building Trust and Authenticity

Web3, powered by blockchain technology, has the potential to revolutionize supply chain and logistics management in three fundamental ways. Firstly, it enhances traceability by securely monitoring and mapping the entire supply chain, allowing enterprises to provide verifiable and immutable information about their products and transactions to increasingly informed consumers. Secondly, it ensures transparency by creating unique hash values for all data and transactions, allowing public access to the supply chain process and real-time validation on a blockchain network. Lastly, web3 enables trade ability by tokenizing assets within the supply chain, allowing for fractional ownership and seamless digital transfers, akin to the concept of stock exchange shares. This transformative technology promises to reshape the supply chain and logistics industry by fostering trust, efficiency, and innovation. What is also fascinating is that the process can be fully automated as you can see in figure 1.

Figure 1: How does web3 automate commercial processes in logistics?

IBM Food Trust is a prime example of how blockchain technology is being harnessed for supply chain management, specifically within the food industry. By leveraging this innovative solution, food producers, distributors, and retailers can seamlessly track the entire journey of food products across the supply chain. This enables enhanced transparency and traceability, ensuring that vital information such as origin, ingredients, and handling procedures can be readily accessed and verified. IBM Food Trust empowers stakeholders to make informed decisions, mitigate risks, and build trust among consumers by providing an immutable and auditable record of each step in the food supply chain.

Adapting and Thriving in the Web3 E-commerce Landscape

To stay ahead of all the innovations we discussed, consider partnering with Web3 platforms, collaborating with others, and being an early adopter of emerging technologies. By being proactive, you can unlock new possibilities, gain a competitive edge, and succeed in this evolving e-commerce ecosystem.

Don't miss out on the exciting opportunities that blockchain technology, decentralized marketplaces, and tokenized loyalty programs offer. Blockchain ensures secure and transparent transactions, while decentralized marketplaces connect you directly with customers. Tokenized loyalty programs can boost customer engagement and keep them coming back. Make sure to embrace supply chain transparency and let your customers know about your efforts to build trust. 

References:

1. https://decrypt.co/resources/what-are-decentralized-marketplaces 
2. https://blogadmin.sellitic.com/sellitic-the-decentralized-marketplace-for-artisans/ 
3. https://www.linkedin.com/pulse/why-tokenization-rewards-future-loyalty-programs-frank-mazza/ 
4. https://101blockchains.com/tokenization-for-loyalty-programs/#:~:text=Examples%20of%20Tokenized%20Loyalty%20Programs&text=Singapore%20Airlines%20revamped%20its%20frequent,power%20with%20other%20associated%20merchants. 
5. https://www.leewayhertz.com/web3-in-supply-chain-logistics/#What-are-the-features-of-a-web3-supply-chain? 

About Carmen Rodriguez

Carmen Rodriguez is a social media manager at Luna Vision and executive assistant at basenode.io. Before that, she worked for other companies in the marketing field. Besides her degree in business administration, she holds a master's in social innovation. She is an alumna of the DLT Talents program, well connected in the Berlin web3 ecosystem. You can reach out to Carmen via LinkedIn.

About Luna Vision

Luna Vision is a blockchain marketing agency with its roots in the blockchain ecosystem. We offer data-focused marketing to blockchain startups. With a deep understanding of blockchain technology, we can best promote your products created and running within the blockchain ecosystem and “translate” to your customers - may they be already included in the ecosystem or still be new here.