Unlocking the potential of NFT Business: guide to maximizing profits

NFT business

Table of Contents

Non-Fungible Tokens or NFTs have generated plenty of conversations about the role of blockchain technology in business.

NFTs represent a range of potential use cases and offer businesses and other organizations a way through which they can offer unique and individualized experiences and one-of-a-kind digital assets

But NFTs are not the only new assets you should take into account. In today’s competitive market, you have to empower your business with the latest technologies, such as Zakeke Visual Commerce Platform!

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Understanding Blockchain and NFTs

There is a wide range of ways a business might be able to use an NFT, meaning that it can be important to understand what NFTs are outside a particular use-case context. In order to best understand what an NFT actually is, let’s take a look at blockchain technology–since NFTs are a product of blockchain technology.

Essentially, a blockchain represents a digital ledger that is very difficult to change retroactively. Blockchain technology allows users to share access to a central ledger and see changes in near real-time. This presents a tremendous opportunity to anybody who needs to quickly share information securely and accurately. 

One frequent use of blockchains is the organization of digital assets. Digital assets can be many things. Importantly, a digital asset is generally worth something and stored securely and digitally. Cryptocurrency, fungible tokens, and NFTs are all examples of digital assets. 

NFTs are non-fungible tokens, meaning that they’re unique and cannot be interchanged with another token. Other digital assets, such as crypto coins can be traded for one another, but theoretically, a non-fungible token is a unique asset. As such, NFTs can be used to represent ownership of singular assets or can be used as exclusive assets themselves–as might be the case with some NFT art.  

NFT businesses can leverage NFTs in their business models in many ways. NFTs can be used as exclusive passes to in-person experiences, as assets that only represent themselves as digital art, to represent ownership of real-life assets and more. 

Understanding NFTs for eCommerce and retail

There’s no one way to use an NFT. E-commerce businesses and retailers have already begun to use NFTs in all kinds of capacities. NFTs have a wide range of use cases in e-commerce to engage with customers further:

  • One such use is offering consumers digital assets that are used to represent real-life assets such as experiences or products;
  • Another possible use is for rewards and loyalty programs which might offer consumers NFTs that they can collect over time;
  • Still, some businesses might use NFTs as simple digital assets that are inherently valuable. 

Examples of NFT business use cases

Big brands such as Nike, Taco Bell, and even Coca-Cola have moved to adopt the use of NFTs as a way to engage with consumers. 

For example, Nike recently launched their first line of NFT sneakers. Taco Bell has started to use NFTs to raise money for the Taco Bell Foundation, a nonprofit organization dedicated to helping youth attain education opportunities. 

As many use for NFTs as there are in retail and e-commerce, the use of any new technology can come along with certain challenges that must be addressed. With NFTs some of these challenges include ensuring that NFTs are compliant with emerging regulations, addressing security concerns, and more. 

Importantly, NFT websites and NFT e-commerce platforms may need to find ways to ensure that consumers have secure wallets with which to store NFTs. In order to do this, retailers might partner with businesses that specialize in securing digital assets.

NFT business

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NFT business models for eCommerce and retail

NFT ecommerce market

What business models can organizations use in order to generate revenue with NFTs? Let’s explore a few possibilities:

  • Selling NFTs as NFTs

Some businesses might simply be in the business of selling the NFTs themselves–they might be digital art, collectibles, or novelties. In many cases, these might be customizable and available through a custom NFT marketplace. Some businesses might offer ways for consumers to mint and create their own NFTs by using NFT builders. 

One potential upside of this business model is that it’s very straightforward, while a potential downside is that should consumers lose their interest in NFTs, there may be no additional value offered. 

While selling off a single set of exclusive NFTs for a low price might not seem like a great way to generate revenue, offering NFTs can be a great way to generate conversations. For example, Taco Bell’s tweet announcing that they were offering NFTs received hundreds of retweets, over a thousand likes, and hundreds of quotes. 

A similar tweet from Coca-Cola received over a thousand quotes. While the potential upside is clearly higher marketing visibility, one potential downside to this approach is that it could result in negative press and backfire as well. 

  • Using NFTs as a part of a larger rewards or loyalty program

Businesses may offer consumers NFT drops as a part of their rewards or loyalty program. This can be a way to make shopping more exciting for consumers, offer more personal rewards, and even learn more about customers. One challenge that businesses might face with this approach is creating desirable rewards for NFT.

E-commerce platforms can choose what benefits come with NFTs – for example, consumers who’ve collected one NFT may get access to exclusive rewards or discounts, and consumers who’ve collected two might have access to even bigger discounts. 

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NFT use cases across industries

There are many possible use cases for NFTs. Let’s explore some particularly exciting ones:

The gaming industry already holds an audience that tends to be invested in new digital technologies, particularly when they’re able to drive gaming experiences. NFTs can be used to create digital goods that are used in games exclusively by owners. Big players like Ubisoft have made moves toward a future where gaming and Web3 meet. 

  • NFT and Retail

We’ve already explored some of the NFT use cases in retail and reasons businesses can make use of NFT in retail. What’s more, retailers can find ways to make NFT drops even more appealing through methods such as NFT visualization and by offering customizable NFTs. Companies like Nike, which offer NFTs, may be able to tap into exciting new markets as a result. 

  • NFT and Fashion

Perhaps with the amount of overlap between art and NFTs, it’s no surprise that one industry that can embrace NFTs is the fashion industry. In fashion, it may prove particularly important to offer beautiful, visually appealing NFTs. Gucci and other major fashion brands have already started to experiment with NFTs. 

Monetizing NFTs in eCommerce and retail

NFT marketing strategy

We’ve discussed, already how there are a few different business models that can make use of NFTs, but let’s talk a little bit more about actually generating revenue. There are a few ways to monetize NFTs, and not every business model even seeks to do so. Here are some ways NFTs can be monetized:

  • Selling NFTs themselves: sure, this is the most straightforward method, but there’s nothing wrong with it. One of the ways businesses can monetize NFTs is simply by selling them. In fact, Adidas recently made millions on an NFT collection. Let’s look at some NFT examples and prices: on Opensea, users will find items such as Adidas virtual gear, which at the time of writing ranges in price from .02 ETH to over 1 ETH;
  • Selling NFTs that represent real-life goods or in-person experiences: some businesses might take a different approach to NFT monetization and offer real-life products or services along with them;
  • Using NFTs as a way to drive sales: offering free NFTs is another way companies can drive revenue through NFTs – albeit indirectly. By offering consumers NFTs for free, companies may be able to generate loyalty and buzz. 

How to start an NFT business

NFT minting

If you’re interested in starting an NFT business, it can be helpful to understand some of the things we’ve discussed – such as what business models can be used with NFTs, how different big players have approached the matter, and different ways that NFTs can be monetized. 

However, you might be wondering more about the nuts and bolts of it all – how to create an NFT, what the best NFT creator software is, and which NFT platforms you might be able to use to help. In other words, really, how to start NFT businesses. 

The short answer is there is no one single best way to start any business, let alone an NFT business. Importantly, you may want to consider some of the same things nearly any business owner might – what your intended market will be, what value you will offer, and what pain points you can address. 

The truth is, there are many approaches you can take to creating NFTs to use for your business. All you need to do is embrace new technologies to take your business to the next level. Zakeke, our Visual Commerce Platform, can help you through the power of visual commerce, empowering your eCommerce with Customization, 3D Configuration, and Augmented Reality.

NFT business

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