How Metaverse is Revolutionizing the E-Commerce Space?
Technology has progressed to unimaginative heights and Metaverse is one enigmatic example of this evolution. Metaverse is the fruitful outcome of more than three decades of technological processes to build an exemplary level of virtual experiences. We are leaning towards a captivating virtual environment and this synergized impact of Metaverse is also influencing the e-commerce industry to level up its game by multiple leaps and bounds. Through this read, we will discuss how Metaverse is revolutionizing the e-commerce space and what prospectus it holds for the future.
In simple words, Metaverse is described as the experience of real life in virtual space. It is a ground where data and digital assets can be operated with the help of Virtual Reality (VR) and Augmented Reality (AR). For the e-commerce space virtual reality is an excellent way to give such services to consumers that are beyond their expectations.
What Problems of the E-Commerce Space are Tackled by Metaverse?
It is also evident that in the past few years, E-Commerce has faced various complexities related to data and security which only a deep-technological transformation like Metaverse can solve. It has now become the ultimate tool that allows businesses to deal with these real-time complexities and combine various online platforms providing the “in-store” experience. This creates a hybrid-shopping mode for the consumers and empowers them to make futuristic choices. Some of these problems that can be resolved on larger grounds via Metaverse are listed as follows-
Retaining the Customer Base
Known as Customer Lifetime Value (LTV), the tool is used by companies to analyze the profit gained by working with a client. A very simple rule of business is; the more loyal and regular your consumers are the more income it brings along. As customers now have multiple platforms pitching the same assortments, chances are that over a period, the churn rate exceeds the retention rate and Metaverse is emerging as a surreal expert in dealing with this.
Return Rate and Policies
We all agree that it is more convenient to return purchased/damaged items online as compared to retail stores. Nobody has the time or patience to visit two-three times and receive an immediate refund for the damaged items. Hence consumers find it more hassle-dense to deal with the return/refund policies in retail stores as compared to online platforms. With technologies like Blockchain and AI-driven supply chains (sub-domains of Metaverse) coming up, this can too be resolved with utmost swiftness.
Running out of Creativity
In each segment of the business ecosystem, the competition is cut-throat both offline and online. It becomes imperative for businesses to constantly come up with ideas to stand out from the competition and deliver a unique experience to their target audience. Whether it is deploying an AI-driven customer experience model or a customer-query service with Chat GPT-3, the urge of having that edge over the competition is crucial. So, Metaverse brings the best of both worlds-social media influence and e-commerce to create new and adaptable ideas.
Wavering Trust of Consumers
We all will agree that once we get to try a product or a service with no or minimal cost before investing all our money into it, we feel smarter and more confident about our choices. Hence Metaverse can be an excellent way to deal with customers’ varying trust issues, give them multiple opportunities to experience the elements of a service, and then on the grounds of authenticity build stronger alliances with them. It predominantly takes into account basic human desires and is particularly an attractive factor for the gen-z.
Scaling Low Margins
Retailers and small businesses often have to deal with fewer margins and fewer profits which are the total opposite of the profits made from online sales. With Metaverse, having the ability to combine the shopping experiences of both online and offline modes, it robustly strengthens the omnichannel of e-commerce and brings larger profits to the business.
Let’s Know About Brands Who Have Changed their Customer-Engagement Game with Metaverse
The superlative star of the fashion and shoe industry- NIKE has created a whole new universe with Metaverse named “NIKELAND”. With this, NIKE has given its consumers the experience of its exclusive products and it has even helped the brand sell its digital products. NIKE has also made a benchmark by selling their NFT SNEAKERS (digital assets) and made a total of 3.1 million dollars.
The next one is the tycoon of the electronic industry- SAMSUNG. The brand created its virtual store in New York and gained more than 120,000 clients within a couple of months. Other brands like Rolex, Gucci, Louis Vuitton, and Dior amongst others have leaped in Metaverse.