Race for innovation: Why do companies like Amazon move to Web3 and adopt NFT marketplaces?

The word NFT marketplace has been consistently gaining popularity in recent years. However, while people with technical knowledge are increasingly benefitting from the marketplace, others have no idea what that means. Let us break it down, so you could start considering the value the NFT marketplace could bring you.

What is an NFT marketplace?

You might have heard of Facebook Marketplace, right? If not, think about your local website or an application, where people can sell their stuff and purchase something. Or even Etsy and Shopify. All of these are examples of a marketplace – an open space where people make commercial deals. Now, the NFT marketplace should be easier to understand!
An NFT marketplace is the same marketplace, but instead of physical goods, this marketplace offers NFTs (if you are not sure what NFTs are, read this article). Those NFTs could be coming from companies or individuals, as well as from dozens of various fields. For example, think of sports – a collection of sneakers from an NBA legend; art – pieces that are available both online and offlinegaming/popular culture, and even fashion – a phygital collection of ready-to-wear clothes. Open Sea is the largest NFT marketplace example.
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Picture credits: The Generalist

Commercial giant and its own NFT marketplace

Although Open Sea is the most popular, more and more companies are launching their own NFT marketplaces. Undoubtedly, companies begin to realize the possibilities of having their own marketplaces. That is, they can have full control of the purchases their customers make, emerge as an innovative force, establish a new source of revenue, and even set up a strong loyalty program (here is how NFTs can enhance your customer loyalty).
Amazon is the world’s most famous commercial place with a net revenue of over $513.98 billion in 2022. Just a week ago, the company announced that it will be launching its own marketplace. This caused a lot of excitement among Web3 lovers all around the world because some major changes seem to be coming. More specifically, Amazon might be linking physical products to their NFT collections, meaning that people that buy an NFT will get, let’s say a pair of limited shoes, as an extension. Additionally, Amazon’s marketplace opens up space for digital assets and new ways of advertising. It is also predicted that many companies around the world might follow Amazon’s move and launch their own NFT marketplaces.
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Picture credits: ad.nl

Be Among The First

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