The Rise of Metaverse Commerce Strategy in the Digital World
Since the advent of eCommerce and its continuous improvement, online purchases have increased, and the online revenue of businesses has exploded. However, if you see the market, every business has implemented digitalisation and technical aspects to improve their annual revenue and expand their businesses worldwide.
Every individual wants to grow their business and always has something in mind. Let's push your imagination beyond normal to think something out of the box. For example, if you want to deliver the product to your customers right after checkout in online stores. Can you do that with eCommerce technology?
Am I pushing too hard? Not really, because Metaverse is the new cool in the eCommerce industry. This transformation has brought many improvements in eCommerce practices, leading to more sales and potential traffic. Every leading organisation is now looking towards metaverse commerce. It would help if you also started planning how to build your digital presence to evolve like other tech giants in the market.
Why Metaverse Commerce is Essential
The Metaverse gives customers a 3D view of the products with its virtual tour. It helps the customer assess the product from the virtual shop and lets them quickly decide on any product with a 3D view. Online shopping with metaverse commerce is easier to shop without any hassle. Also, it keeps away all the doubts about the products or services.
In addition, according to Statista, the virtual representation of products during online shopping has gained popularity in the US. It shows that 7 out of 10 professionals purchase after seeing a virtual representation on the Metaverse.
The Main Features of Metaverse
Before you read other things about the virtual world, aka Metaverse, I think you should know that the metaverse technology core, including Blockchain, extended reality (augmented reality), and NFTs, are the building blocks of the Metaverse. Let's check the basic features of Metaverse:
When discussing the Metaverse, remember that Blockchain is integral to it. Blockchain technology includes decentralised structures and an aligned virtual world in which event occurs in the virtual world just like the real world.
All the features, including synchronisation and decentralisation virtual ecosystem, are impossible without blockchain integration. This technology helps to keep track and record everything done in the digital space. Moreover, the decentralised structure of the Blockchain does not let any single entity control it.
It makes blockchain technology a secure and reliable ecosystem that any individual does not control. It allows for tracking changes in the virtual assets and their ownership and reduces the crime rate in the Metaverse.
Extended reality (XR) is the spectrum term for an immersive experience involving virtual and augmented reality. Together, they make an entirely new level of virtual experiences using XR. The Metaverse is incomplete without extended reality and would be just sci-fi. These technologies would be seen as an immersive experience in the virtual world by creating them into reality and directly in front of our senses, such as 3D visuals, augmented reality (AR), etc.
Non-Fungible Tokens (NFTs)
NFTs, aka non-fungible tokens, also referred to as digital asset, is registered on a decentralised structure of Blockchain that maintains an accurate record of the ownership of that digital asset. This way of the asset has gained tremendous success in the last couple of years.
Furthermore, this digital asset can be created by different works varying from music to artwork to stock exchange. The storage of this digital asset is blockchain technology in the form of NFTs, which can be reproduced when required.
The Latest Position of the Metaverse
If we look a few years back, we might know that the Metaverse exists amongst us, but we couldn't guess it. Whether Minecraft or Pokemon GO, they all are virtual worlds, giving us a little experience with virtual life. However, technology is on the urge for expansion, and people are more interested in technology. The virtual world's expanding horizon has given the Metaverse concept.
It is now possible to create a virtual world by integrating blockchain technology where reality is synchronised and tracked through Blockchain. There are a few metaverse projects already created for the virtual future. For example, Sandbox is a virtual world built on Ethereum, allowing users to purchase lands and digital assets as NFTs. Metaverse is at a rapid development with high demands, especially NFTs. It is going to dominate the real world in no time.
According to Bloomberg, research has predicted that around $13 Trillion in the industry could grow by 2030.
Difference Between Digital Commerce Vs. Ecommerce
If you say that eCommerce is a function, digital commerce is a culture. An eCommerce market refers to the functional aspect of selling online products and services, which includes website development or supply chain management, logistics, etc. But we all know deep down that online retail requires a lot of patience and strategies to sell a product successfully. That is why digital commerce has evolved; the two disciplines should not be confused.
If eCommerce works as a “nuts and bolts” for online selling, then the digital commerce working mechanism mainly focuses on people, technology, and data-driven results with a better customer experience with more interactions and engagement, to increase the retention rate and ability to make everything workable for both parties in a reasonable manner.
Creating Community in the Metaverse Direction
The eCommerce industry has come a long way since its development. It has made tremendous and successful growth in the market. But there are still some shortcomings that need to be overcome. The lack of customer and dealer interaction sometimes makes things complicated to deal with as an overall experience for both parties.
Additionally, this lack of interaction leads to trust issues between parties, which does not give businesses the edge to be wholly trusted by consumers. This metaverse technical aspect has changed this dilemma by providing a virtual experience to the customers.
This solution works for both parties because it helps them understand their requirements. Also, metaverse commerce has built-in social features which encourage interactions and build trust between buyers and sellers. The overall positive impact leads to increased sales and a better shopping experience. It will be a smart choice for your eCommerce strategies if you consider moving in a metaverse direction.
How Metaverse Comprehends with eCommerce Technology?
Metaverse commerce uses blockchain technology to create an open and transparent environment for buyers and sellers. It helps them deal directly with each other. Besides, the metaverse smart contract's strategy provides secure, easy, and fast transactions because the binding agreement is automatically applied to both parties.
The past has critical developments, which include blockchain technology, with which a new era of eCommerce technology has emerged. Moreover, this technology is suitable for everyone and gives chances to anyone who wants to start their business with a transparent, fast, and secure platform.
Metaverse Commerce Facilitates Online Payment
Metaverse platforms are also designed to facilitate online transactions, which include the use of cryptocurrency, also known as ETP (exchange-traded product). It is also used to purchase goods and services from merchants worldwide. ETP is an efficient, fast, and secure way for payments. You can use it to pay for coffee or a car.
Moreover, you can also make payments using NFTs to improve your customer service and experiences. However, NFTs purchases are limited to the brand's loyal and passionate customers.
This platform makes things transparent for businesses and offers secure and fast transactions to do business. This technology has opened ways for businesses to everyone.
Combining Both Online and Offline eCommerce
Metaverse is a virtual world that maintains and merges online and offline stores. This evolution has opened new doors for eCommerce stores. For instance, you check a product online and go to a physical store to try it, or you can order anything online and pick it up physically. That is how metaverse commerce has made things work too.
Furthermore, this technology also provides customers with a better and more immersive experience. This approach produces a stronger connection with potential customers and provokes them to spend more money.
Evolution of Metaverse Commerce
A metaverse is a form of marketing in which you visually represent your product, allowing users to do business with you or buy your products. Here are some pointers that you must know about metaverse commerce.
Good for Global Marketing
This eCommerce revolution provides ease to businesses and helps them reach international audiences and customers globally for their products. You can sell your products without setting up a shop physically in different countries. It also cuts the shop cost, including everything from staff to products to customs.
Secure Policies for Businesses
This development is secured with blockchain technology, ensuring all your transactions are recorded and cannot be changed by another person or any third party. This new way eliminates expensive third-party payment processors, which lead to fraud or scams.
Better Shopping Experience
Metaverse commerce stores provide a better shopping experience to potential customers. You can visit the stores online and check the products virtually. This strategy has increased customer satisfaction and retention along with more engagement and loyalty toward brands.
Online stores and virtual shop tours provide customers with a fun experience and promote products or services. The virtual environment will improve the shopping experience through more interesting product encounters. Customers can ultimately interact with the products in virtual environments where virtual storefronts will be present.
Businesses can set up identical stores in different virtual worlds because they are digital assets. Even Facebook allows users to sell things on Facebook by using Facebook Shop. If shoppers can investigate and experience items in several dimensions, their shopping experiences will be more enjoyable. There won't be much of a difference between offline and online shopping.
Metaverse Commerce Uprise in the eCommerce Industry and Its Benefits
Metaverse commerce tends to uprise the eCommerce industry with its strategic approach to gain customers' attention and provide a better experience to potential audiences to increase sales. Check out the concepts below that might change the eCommerce practices:
Perfect Customised Experience
Mostly, eCommerce store sales are limited to product recommendations or discounts. But in metaverse commerce, brands provide hyper-personalisation to customers, freeing them from worrying about multiple restrictions in the physical stores.
You can also do virtual meetings based on metaverse commerce technology. It provides a different kind of environment. According to a study by Gartner, 25% of people will spend a minimum of 1 hour a day in the metaverse world for shopping, education, social media, or entertainment by 2026.
Just imagine if you are working from home with your AR glasses and your company has a metaverse approach, then it will look like the GIF attached below:
Minimises Return Rates
The return rates will decrease if you integrate metaverse commerce into your online stores. By creating virtual experiences, merchants can sell products with minimal return rates by giving them a virtual tour. The products commonly returned are cosmetics, furnishing, shoes, and ready-to-wear.
Growth in Revenue
Research shows that customers are willing to pay up to 40% more for products that can be tested in 3D. This advanced technology, knowns as metaverse commerce, provide consumers with details about the product, which leads them to make an informed purchase decision. This approach leads to growth in revenue.
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This powerful machine has evolved your audience. You can now introduce products based on your customer demand, specifically those who can pay for those products — this help in building strong relationships of customers with the brand. In addition, you can assess your potential customer's expectations of your brand.
The hyper-real alternative virtual world will significantly change people's interactions with virtual items. One example of how the Metaverse has the potential to transform the online business landscape is how consumers engage with companies and products.
It will replace today's boring 2D product sites with a 3D virtual environment where users may interact with virtual objects and other users. Metaverse will raise customer contact with brands and products to a nearly comparable level to in-person shopping.
Such an intensely immersive product experience will significantly influence customers' purchase decisions. Through different new virtual touchpoints, it will also improve the customers' pre- and post-sale purchasing experiences. For instance, companies can use virtual items in the Metaverse to demonstrate their products.
Help in Understanding Customer's Interests
It is one of the essential parts of understanding your customer's psychology. Marketers always create content that will engage and attract customers. Imagine yourself taking a virtual tour, seeing different products online, and interacting with them virtually.
It helps the brand to understand how much they need to produce that specific piece according to the customer demand.
Make Customer Journey Better
Metaverse commerce has made the digital experience closer to reality. It is way too different from the 2D interface of eCommerce stores. You can say that it bridges the gap between eCommerce and physical shops.
According to research by Shopkick, around 70% of consumers want to try, touch, and see physical products before purchasing. But this Metaverse has provided customers a new experience that lets them purchase online without hesitation.
Ecommerce Giant Businesses With Metaverse Technology
Adidas and Nike are the biggest two names in the apparel industry. These two giant tanks have implemented and entered the world of virtual reality using metaverse commerce technology. This technology is beyond everyday strategy and traditional internet ways.
This place is inaugurated by smart ways to let people interact with each other with digital versions of real-world objects. Adidas have associated them with Metaverse, but their strategy is still underway. However, it is still unknown what it will look like in the future, but they know the importance of the Metaverse's technical aspect. At the same time, Nike has been working with a company like Vertebrae plans to build a 3D replica of its central location in the virtual world.
Virtual worlds are projected to impact billions of people and their internet presence. Three-dimensional avatars can interact in these virtual spaces. In a situation where most things have switched from being real to being virtual, people are increasingly concerned with how their avatars seem.
Mark Zuckerberg states avatars will represent people's motions and gestures in the Metaverse through more robust interactions. Rich brands are already profiting greatly from this. Limited virtual assets are being sold in the virtual world through non-fungible tokens. This is how top-quality businesses have also started establishing themselves in the online world.
Here are some stats for brands:
- Recently, Gucci sold a bag in Roblox using NFT technology for 350K Roblox currency, which equals $4115.
- In 2021, Coca-Cola merged with Tafi and created virtual loot boxes, grabbing around $1 million.
- Also, in December 2021, Nike bought RTFKT, a famous digital sneakers brand that sold 600 pairs of shoes valuing $3.1 million in less than 10 minutes.
Takeaways for Companies For Moving to Metaverse Commerce
Here are a few things you need to take care of as a company to move to metaverse commerce.
- To improve consumer interactions and boost online sales, companies must concentrate on making their eCommerce websites feel more realistic.
- Similarly, businesses may consider lowering their physical infrastructure shortly to concentrate more on technology investments and metaverse areas to increase sales.
- To develop, share and maintain competitiveness, organisations should concentrate on offering fascinating content and engaging experiences (e.g., exclusive partnerships, user-created content tools, robust data and insights collecting).
- Organisations will be required to handle a variety of risks and complications in the Metaverse (such as privacy/security, accessibility, and sustainable energy use), as well as make sure they are actively creating a responsible metaverse and successfully upholding employee and customer trust.
- Create a metaverse plan, but make it adaptable enough to consider customer tastes and technology shifts. Adopt a “test and learn” strategy for enterprise and consumer-facing activities.
- Given that the widespread Metaverse and related income generating are likely several years away, businesses should consider KPIs for consumer and employee engagement in addition to ROI when making investments. Think about your investments in light of larger digital transformation goals.
The virtual buying experience is improved when the Metaverse is integrated into a company's sales structure. However, there are a few things to consider if you want to maximise this potential and overcome any obstacles that might serve as hurdles. Realism is necessary so that your clients can mimic a real purchasing experience. Additionally, businesses must innovate; digital engineers must use more effective techniques to create these virtual places and accelerate transactions.
Metaverse commerce's emergence will change the direction of online shopping for people who prefer shopping online rather than physically. Since the pandemic outbreak, digital commerce has been evolving. It has gained so much popularity and profit that businesses now want to implement these technologies to grow and expand their business worldwide.