Reading Materials for Module 6

DM Strategies for Online

Selling
Module Code: eCOMM

Article Title:

The Future of Web3 and E-Commerce

Strategy

Date of Publication: 2022/07

Reference Link: https://www.spiceworks.com/tech/innovation/guest-article/the-future-of-

web3-and-e-commerce-strategy/

Filename: The Future of Web3 and E-Commerce Strategy

The content in this document belongs solely to Intangibles Consultancy Pte. Ltd. and is not to be
circulated outside the designated coursework without permission. Copyright reserved 2023.
Title: The Future of Web3 and E-Commerce
Strategy

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, 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 Association, 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.
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.

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.

Navigating Online Transactions and Decentralized Networks

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.
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.

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.