GM, this is Milk Road. The crypto newsletter that has better service than the US Postal Service. We actually deliver on Sundays.
Let’s get right into the good stuff.
Something BIG just happened… And no, it’s not another bankruptcy, scam, or hack. Don’t worry, no dirty talk today. *phew*
Instead, we’re gonna talk about something that we think will play a big role in the future of web3…
E-commerce.
Today, we’ll talk about:
- Why web3 commerce will be huge
- How it’s already starting
And we teamed up with our good friends over at thirdweb to make it happen.
Today’s edition is sponsored by thirdweb - they provide tools for companies and developers to build Web3 apps. They’ve just partnered with Shopify to launch CommerceKit - a development kit for building web3 commerce apps.
WHY WEB3 COMMERCE WILL BE A BIG TREND
Pop Quiz: What’s the most popular thing people do online?
It’s…. shopping. And e-commerce is taking over the retail world faster than you can say “one-click checkout."
As of today, there are 2B+ people around the world that buy stuff online, and close to 20% of all retail sales happen online. (Btw, it’s estimated that number will go up to 95% by 2040)
Why?
- It’s easy. You can buy stuff with a click of a button. (Literally)
- It’s convenient. No need to leave your house - just buy online & get it delivered to your doorstep. Plus, I can finally shop in my boxers without getting weird looks.
And it’s not just buyers moving online, so are sellers. From large brands to local mom & pop shops, retailers are creating digital storefronts to expand business opportunities.
It’s a lot easier for a small company in MiddleOfNowhere, Kentucky to get 10,000 website visitors than to get 10,000 people to physically walk into their store.
Plus, it’s never been easier to create an online store. Platforms like Shopify make it super simple to create and run a digital storefront. And Shopify’s e-commerce platform has been boomin’...
Last year Shopify processed ~$80B in order value across 4.4M+ digital stores, and was used in 175+ countries. Even celebrities like Kylie Jenner, Adele, and David Beckham use it to run their e-commerce brands.
We bring all this up to highlight one thing: e-commerce is growing exponentially and will only continue to get bigger.
Web3 commerce will help bring the next evolution. And guess what….
It’s already started. Shopify and thirdweb just launched a set of developer tools that allow brands to easily integrate web3 features. It’s bringing stuff like NFTs, on-chain loyalty programs, and token-gated experiences to Shopify’s digital storefronts.
This is big for 2 reasons:
1/ NFT-gated experiences for “true” customers
Have you ever heard of “1000 true fans”? The idea was created by Kevin Kelly (creator of Wired Magazine).
It’s a simple one: the idea is anyone (i.e a creator, brand, musician) can "make it" if they find 1,000 true fans.
These are the die-hard fans who will be the first to buy your t-shirt merch. They know your brand inside & out. They’ll die on the hill supporting you & your products, no matter how sh*tty they are.
Now Shopify is letting brands recognize & reward these customers by giving them NFTs. Holders of the NFTs can get exclusive products, discounts, and even tickets to IRL events. All you have to do is connect your crypto wallet to Shopify and voila - instant access to cool limited edition stuff.
Not only are NFTs the best “true fan” technology out there, but it also gives customers & merchants…
2/ Additional revenue streams
You see, NFTs give loyal customers a way to “invest in your success." The same way that sports fans invest in "rookie cards" for athletes, getting an NFT for a new business early on is an investment too.
If you get an NFT from a smaller clothing brand early on, and then it becomes the next Nike, that exclusive 1 out of 1000 NFT is going to be worth a LOT, as more & more people want the perks of exclusive products, discounts, and IRL events associated with that brand.
And not only can early customers sell that NFT membership for a profit if the business is boomin’, but the store owners will also benefit from royalties on each secondary sale. Just check out how much the top NFT collections made in royalties last year…
NFT project royalties last year
— Milk Road (@MilkRoadDaily)5:38 PM • Jan 2, 2023
RTFKT MNLTH and Adidas IT are two great examples of how brands can successfully leverage NFTs to bring in millions in additional revenue.
In a nutshell - Early customers can sell the NFTs (sometimes for a nice profit), and creators/brands receive royalties. What’s not to love?
THE FINAL GULP
There is no doubt the Web3 commerce wave is coming - it’s already begun. Which is exactly why whether you’re a retail buyer or a seller - it’s an exciting time to get involved.
The Shopify x thirdweb duo is making it as easy as possible to build the future of Web3 commerce. There are gasless relayers that lower transaction fees, an easy NFT process where customers just need a credit card to buy, and seamless wallet sign-in so customers can easily connect popular crypto wallets like MetaMask and Coinbase Wallet.
Plus, now it’s possible to sell digital products (aka NFTs) on a storefront alongside physical products.
Consumers are gonna want to purchase their digital products from the same places they buy their physical products - Commercekit lets you do it all in one place. No need to go to another marketplace like OpenSea, Blur, or x2y2.
Wanna learn how you can easily build Web3 commerce experiences?
MILKY MEMES
🤣🤣
That's a wrap for today. Stay thirsty & see ya next time! If you want more, be sure to follow our Twitter (@MilkRoadDaily)
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Happy sunday, milk road fam!
— Milk Road (@MilkRoadDaily)1:33 PM • Mar 5, 2023
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
