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How Metaverse and Crypto Changing the E-Commerce Landscape?

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The last several years have seen a tremendous increase in online shopping due to a major contribution of the internet. The overall number of digital shoppers globally increased by over one billion between 2014 and 2021, which is anticipated to continue, according to Statista. Our lives are now simpler than ever because of the successful entry into the digital age, where technology is growing and replacing old processes. Blockchain, NFTs, virtual reality, and virtual money are recent technical breakthroughs anticipating a more immersive online experience—the “metaverse.” When we enter the world of Web 3.0, the metaverse is just around the corner. This article focuses on the Metaverse and Crypto in E-Commerce and how it affects the online retail industry, things that every owner of an eCommerce company should be aware of.

What is Metaverse and Crypto?

With the use of blockchain technology to build decentralised virtual worlds and economies, the Metaverse and cryptocurrency are becoming increasingly entwined. In Metaverse, cryptocurrency may be used as a means of payment and to buy virtual goods.

Blockchain-based decentralised finance (DeFi) apps are being created for usage in Metaverse contexts, allowing users to trade, lend, and borrow bitcoins and other digital assets. Users may be able to develop and sell their own virtual goods and experiences, such as virtual real estate, clothes, and entertainment, through the metaverse and cryptocurrencies. As the metaverse and cryptocurrencies are still in their early stage, it how they see how will it affect society in the years to come.

Advantages of Metaverse and Cryptocurrency in Ecommerce

Decentralization

Decentralized technologies like the Metaverse and cryptocurrency do away with the necessity for middlemen. The procedure will be quicker, less expensive, and more secure if transactions between the buyer and seller can be made directly.

Example: Shopify

In December 2021, Shopify said it would look into how NFTs and metaverse experiences could be used to give merchants and shoppers new options. The company is working on integrating its e-commerce platform with blockchain technology. This would let merchants sell directly to customers without middlemen and allow the creation of decentralised marketplaces.

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Wide Reach

Bitcoin and the Metaverse have a global reach that enables e-commerce enterprises to connect with clients from across the world. Businesses may extend their consumer base and income since there are no physical limits.

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Example: Utrust

Utrust is a payment platform built on blockchain technology and enables enterprises to receive cryptocurrencies as payment. The platform also features a digital wallet and an exchange service that enables users to transform their cryptocurrency holdings into traditional currencies, thereby simplifying the process of conducting transactions across international borders.

Security

Blockchain technology, on which cryptocurrencies are built, offers high security. A decentralised ledger is used to verify and record transactions, making it challenging for hackers to control the network. The virtual system of the Metaverse offers a further degree of protection, where transactions can be made in complete secrecy.

Example: OpenBazaar

OpenBazaar is a decentralised e-commerce platform that enables buyers and vendors to interact directly with one another without any intermediaries. Transactions on the platform are conducted using a cryptocurrency known as Bitcoin Cash, and the platform includes features for ensuring the safety of transactions, such as escrow and conflict settlement.

Transparency

Transparency is ensured via blockchain technology in cryptocurrencies and the Metaverse, which records all transactions in a decentralised ledger and makes them transparent. It is now simpler to track and trace transactions due to this insight into the transaction history.

Reduced Transaction Fees

Unlike typical e-commerce platforms, transaction fees are much cheaper because there are no middlemen. This lowers the cost of transactions for businesses, especially small and medium-sized firms (SMEs).

Smart Contract

The conditions of the agreement between the buyer and seller are directly encoded into lines of code in smart contracts, which are self-executing contracts that may be created in the Metaverse. As a result, there is no longer a need for middlemen and transactions may be completed more quickly.

Faster Transactions

Compared to more conventional payment methods like credit/debit cards or bank transfers, cryptocurrency transactions are carried out more quickly. As there are no middlemen, transactions may be finished quickly, improving consumer satisfaction and lowering the possibility of fraud.

Rewards and Loyalty Programs

By providing rewards and loyalty programmes, e-commerce enterprises may use cryptocurrencies to entice customers. Customers become more loyal as a result, leading to increased purchases.

NFTs

Unique digital assets stored on the blockchain are known as non-fungible tokens (NFTs). Online stores may employ them to produce uncommon and distinctive goods that can fetch a high price.

Impact of Metaverse and Crypto on Ecommerce

Decentralized Marketplaces

The emergence of decentralised marketplaces is one of the most important effects of cryptocurrencies on e-commerce. By enabling peer-to-peer transactions without the need of middlemen, these markets lower fees and transaction costs.

Increased Security

A reduction in the risk of fraud and refunds is possible when using cryptocurrencies in e-commerce transactions. Transactions may be verified and documented in a tamper-proof way by utilising blockchain technology.

Integration of the Metaverse

As the metaverse expands, e-commerce businesses may take advantage of it to provide new purchasing experiences. Users may easily acquire virtual products and services within the metaverse by incorporating bitcoin payments.

Asset Tokenization

Physical assets may be readily traded on decentralised markets by being tokenized using cryptocurrency. This may create new options for e-commerce businesses to offer goods like real estate or artwork that were previously challenging to sell online.

Smart Contracts

These self-executing contracts are created by writing the contract terms between the buyer and seller straight into lines of code. Smart contracts enable the autonomous execution of cryptocurrency transactions, eliminating the need for middlemen and accelerating the transaction process.

Cross-border Transactions

Cryptocurrencies can simplify cross-border transactions by eliminating the need for currency translations and international wire transfers. This may make it easier for e-commerce businesses to access global marketplaces.

Loyalty Programs

Cryptocurrency can be used to create loyalty programmes that encourage customers to make purchases. E-commerce businesses may boost client retention and encourage repeat business by offering bitcoin rewards to their consumers.

Enhanced Transparency

Blockchain technology makes a transparent, auditable record of every transaction possible. This can lower the risk of fraud by increasing trust and openness in online transactions.

Micropayments

Micropayments are possible with cryptocurrency, which is advantageous for e-commerce businesses that offer inexpensive goods. This can lessen the impact of how much minor transactions are affected by payment processing fees.

New Business Models

The metaverse and cryptocurrencies can help e-commerce businesses adopt new business models. For instance, businesses may design virtual stores within the metaverse that let customers explore and buy virtual goods in a 3D setting.

How to use Metaverse and Crypto together in E-commerce

Accepting Cryptocurrency Payments

One simple approach to incorporating cryptocurrencies into your business is to accept cryptocurrency payments in your online store. It enables your consumers to make payments using well-known cryptocurrencies like Bitcoin, Ethereum, and Litecoin and exposes your company to a new group of cryptocurrency users.

NFT Marketplace

Establish a market place in your Metaverse store for Non-Fungible Tokens (NFTs). NFTs, distinctive digital assets that can be purchased and traded, are gaining popularity in the e-commerce industry. Creating a market place for NFTs may be a terrific approach to draw in new clients and increase earnings.

Virtual Product Demos

Host virtual product demonstrations in your Metaverse store. Customers may experience things virtually through virtual product demos, which makes it simpler for them to make wise purchase decisions.

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Example: FlipKart

E-commerce platform Flipkart has launched Flipverse, a metaverse shopping experience for android users. Flipkart has tied up with several brands for this web3 shopping experience. Shoppers can buy shoes and other sportswear from Puma, wearables from Noise, beauty products from Nivea, bags from Lavie, and even two-wheelers from TVS. The Flipverse from Flipkart functions in the Web3. Now, Web2 is the web version that most of us access. Decentralization, blockchain technology, and token-based economies are some of the ideas included in Web3.

You would have a customisable avatar and exist as a digital twin on Flipverse. It is possible to completely change the appearance of your avatar or to completely modify it so that it resembles you. When you use the Flipkart metaverse platform Flipverse, you will hear this word a lot. Digital collectibles in Flipverse would be NFTs. They can come in different forms, like Strand and other digital items.In Flipverse, a Strand is an NFT that you can claim to make your digital avatar and make Flipverse your “own virtual world.” Flipkart was also giving away up to 500 Supercoins to people who finished their KYC on Firedrops. The Flipkart app now has a new feature called “Firedrops by Flipkart.” You can get your own wallet through Firedrops by Flipkart, which is important for storing, trading, and collecting NFTs.

Augmented Reality (AR) Try-Ons

Employ augmented reality (AR) technology to provide customers the option to virtually try on things. Customers may have a more immersive buying experience with AR try-ons since they can be utilised for various items, including apparel and home decor.

Example: LensKart

The LensKart app has 3D AI technology that enables users to digitally try on several frames and choose which one best suits them. Customers no longer need to visit physical stores due to any inconvenience. From the comfort of their couch, they may select the appropriate frame. The mobile vision correction technology offered by Lenskart is another distinctive offering. Customers can do an eye checkup at home. It makes sense that the app has received over 20 million downloads.Technology and AI are the biggest enablers in what we do and want to achieve . Our goal is to consistently raise the standard for customer service while surprising our clients. The items are created and tailored centrally in an amazing robotic center, guaranteeing the highest level of accuracy in the glasses without compromising quality.

Taking one step further, Lenskart cleverly marketed their augmented reality throughout the IPL season. In less than 10 seconds, the virtual augmented reality creates a customised selection of glasses for the consumer based on face traits detected by AI. Discover more than 10,000 styles, virtually try them on, and even share them with others for a second view. This promotion, which included a free eyeglasses giveaway for clients every minute, was a smashing success. “We are thrilled to have an incredible reaction for Nazar Ghati Durghatna Ghati 2.0 highlighting Lenskart’s new feature of Augmented Reality,” stated Ramneek Khurana, Product Head at Lenskart.

Today’s visitors to the Lenskart App have already begun using the virtual augmented reality function. In the past two weeks, the firm has seen a 3X increase in the use of augmented reality. With the use of this new AR technology, Lenskart has enhanced its 3-D Try-On function, making it much simpler and easier to use to try on glasses online.

Virtual Events

Organize digital gatherings in your Metaverse shop. For example, sales events and product introductions may both be held virtually. They provide customers a special and interesting method to engage with your brand.

Loyalty Programs

Employ cryptocurrency-based loyalty programmes in your online store. Customers can earn incentives through cryptocurrency-based loyalty programmes that can be exchanged for other goods and services or bitcoin.

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Centralized Alternative Markets

Build one in your Metaverse store. Decentralized marketplaces provide direct communication between buyers and sellers, eliminating the need for middlemen like Amazon or eBay. Customers may have more influence over their purchases, which can lower transaction fees.

Crypto-backed Loans

Provide consumers with loans secured by cryptocurrencies. Loans that are backed by cryptocurrencies are known as crypto-backed loans. Customers may find them a wonderful alternative to selling their crypto assets to obtain funds.

Smart Contracts

Implement smart contracts in your online store. Self-executing contracts, or smart contracts, autonomously enforce an agreement’s provisions. They may be utilised to automate several facets of your online store, including payments and delivery.

Crypto-based Affiliate Programs

Use affiliate programmes that are based on cryptocurrencies in your online store. Customers may make money by referring people to your goods and services thanks to affiliate networks based on cryptocurrencies.

Gaming and Entertainment

People can use avatars to converse, play games, and do other tasks in the metaverse, a virtual environment. Crypto is a form of virtual money that may be used to purchase and sell goods and services in the metaverse.

By enabling users to design their own avatars, exchange virtual goods, and obtain real-world money through games, these technologies improve the gaming experience.

Example: Illuvium

Illuvium is a sci-fi, play-to-earn game with excellent visuals based on the Ethereum network. ILV tokens, a type of cryptocurrency, are something that players may gather in Illuvium games. The players can discover the natural disaster events that destroyed Illuvium by exploring 7 magical alien worlds.

Players can engage in combat in the PVP Battlegrounds or the Leviathan Arena for additional prizes. In the IlluviDex, the Illuvium marketplace, users may exchange their NFTs for free with other users. You may claim ownership of your game assets using Illuvium.

Conclusion

In conclusion, the combination of Metaverse with Crypto is revolutionising e-commerce by bringing new heights of comfort, accessibility, and security. A virtual environment called Metaverse allows users to communicate and do business with one another, opening up new possibilities for enterprises to interact with clients in more detailed and customised ways. The safe and decentralised payment system that cryptocurrency offers makes online transactions quicker and more secure than those with more traditional payment methods. Moreover, new business models and income sources like NFTs and virtual real estate are being made available by the convergence of Metaverse with Crypto.

FAQs

A metaverse is a virtual environment where users may communicate with each other and other users as if they were in a real-world setting.

This can include immersive technologies like virtual reality, augmented reality, and others.

The Metaverse is revolutionising e-commerce by giving companies a new channel for connecting with customers.

Businesses may use the Metaverse to provide immersive retail experiences that let customers interact with items and do business virtually.

The Metaverse relies heavily on cryptocurrency since it makes transactions in the virtual world safe and quick. Users may use cryptocurrencies to buy virtual products, services, and experiences in the Metaverse.

This creates new e-commerce opportunities and enables companies to reach a rising market of digital customers.

The Metaverse is reshaping the e-commerce industry by giving companies a new way to connect with customers and increase sales. The Metaverse is revolutionising e-commerce by enabling the creation of immersive shopping experiences and allowing businesses to reach the expanding market of digital customers.

Additionally, using cryptocurrencies in the Metaverse offers new chances for businesses to carry out transactions quickly and safely.

Business in the Metaverse carries dangers, just like with any new technology.

For instance, the usage of cryptocurrencies and the storing of private information in virtual settings may raise security and privacy problems. To maintain the security of their clients and internal operations, firms must be aware of these dangers and take action to reduce them.

Reaching a growing market of digital customers, having access to cutting-edge technology, and being able to design immersive shopping experiences are just a few advantages of conducting business in the Metaverse.

Additionally, the usage of cryptocurrencies in the Metaverse opens up new possibilities for companies to execute transactions securely and effectively and connect with a new generation of digital consumers.

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