Web3 is changing our lives as it advances a shift to open-source software that uses blockchain technology as the core driver toward a transparent internet. Michael Gaizutis, Â Founder and CXO of RNO1, talks about Web3 and how e-commerce strategy will need to undergo significant change in the future.
This shift brings with it important questions for businesses, consumers, and regulators. e-commerce is one sector already adopting these changes, but there is room to discuss long-term strategy. How will companies stay ahead of the curve?
Building a Web3 Roadmap for E-Commerce Success
According to the International Trade AssociationOpens a new window , E-commerce has shown rapid growth in the past few years. The industry had an 18% share of global retail sales for 2020 and is forecast to have over a 1% annual growth rate, achieving a nearly 22% share of global retail sales by 2024.Â
With the widespread adoption of cryptocurrencies and blockchain, these numbers will increase, and e-commerce brands must choose to shift and scale their business models. Web3’s success is driven, in part, by ongoing demand from consumers for transparency. This should drive how branding and financial decisions are made, and fuel the user-experience ethos.
See More: Web 2 vs. Web 3: What’s the Difference and Why It MattersOpens a new window
Leveraging business growth and strategic funnels for opportunity is essential, but Web3 is about identifying and building community, giving a sense of ownership back to the consumer. The e-commerce brands who understand the intersection of smart storytelling, customer value alignment, and how that translates into a meaningful community experience will thrive in the Web3 environment. Failure to overlook the need for community and how that can take shape as true brand alignment can result in loss of customer loyalty. E-commerce and Web3 will allow brands to understand their buyer personas at a deeper level, but it will be important not to “oversell†in a space where young users are hyperaware of these tactics.  Â
Navigating Online Transactions and Decentralized NetworksÂ
The future of online transactions, experiences, and customer options will only continue to grow in the years to come. E-commerce innovators should assess how versatile they want their solutions to be and ensure they are flexible enough to evolve with industry capabilities and standards as this digital frontier evolves. If a clothing brand wants to accept crypto and a Coinbase Wallet integration checks off all the boxes – great. There are endless options to consider, and it all depends on what makes sense for a brand and its community.
E-commerce brands must also consider decentralized finance applications such as Uniswap or dyDx, blockchain layers, wallet integrations, and a long list of possible solutions that work for what they are trying to achieve. These improvements need to be designed with the end-user in mind. Businesses cannot forget that users engage many brands in their life. They learn interaction habits based on the design, payment systems, and interfaces of their credit card companies, their bank, their favorite online store and their cloud-based work file-sharing system. Users are developing digital UX muscle memory that brands must consider as they craft a familiar and valuable experience for their customers.Â
Web3 is driven by brand. Companies must consider aligning their strategic growth in this space by creating ethos and familiarity with consumers on wholly digital platforms. In a Web3 marketplace that is (in theory) community-owned, e-commerce outlets must examine their motivations, make their ethos clear, and recognize what elements of their strategy can and should be prioritized.
Reconfiguring the Experience
In many ways, the past few years have been all about shifting away from the traditional retail experience and embracing new ways for consumers to purchase goods online. Many brands moved away from brick-and-mortar stores to online, making the physical experience less of a priority, thus re-framing customer relationships. Similarly, some brands started brick-and-mortar stores later, needing a new connection to their consumer base. Web3 adds a new layer and depth to the experiential aspect of every interaction. Brands have an opportunity to evaluate what touchpoints are the most important to their mission and how they want their future-forward experiences to unravel going forward.
Form and Function
A critical shift in e-commerce is the resurgence of form relating to technology, utility, and function. In the past several years, e-commerce has transformed the way people make purchases, and the foundational technology is becoming more advanced. However, the opportunities to revisit design and form as e-commerce solutions evolve are where brands can radically differentiate themselves moving forward. Users want meaningful connections, memorable brand identities, and experiences beyond the basic function of technological developments. That is where design can showcase next-level e-commerce experiences moving forward. Brands can reshape their consumers’ muscles.
Addressing Value Alignment and Transparency
Consumer value alignment is an essential piece of the consumer brand puzzle and will unfold in interesting ways as e-commerce moves forward in Web3. For example, 68% of consumersOpens a new window believe that a company’s behavior is just as important as its products and services. Even with these high expectations, only 38% of people think that the positive actions brands implement make a difference or reflect their core belief systems.Â
The profit potential for fashion brands in the metaverse, for example, is astronomical. By 2030, the value of the metaverse could reach $5 trillionOpens a new window . Fashion brands, in particular, will need to weigh profits or ethical practices in their decision-making to build an experience that works with their goals. That is where strategic design thinking will factor into the conversation.
Design for the User
Adopting new payment methods presents an exciting opportunity for the growth and evolution of the e-commerce sector. Building fresh strategies that move brands forward systematically will require design experts at the forefront to support the next wave of Web3. Web3 is a space where a brand exists as more than a logo: every touchpoint represents a brand’s ethos, from entering passwords to completing sales transactions to virtual assistants. High-level experience design will be essential to brand success in the e-commerce space. Most importantly, the savvy business enterprise brings design to the table as they begin their Web3 growth.Â
What key evolving trends do you predict for the e-commerce industry? Share with us on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We’d love to know your thoughts on this!