Chapter 7:

3D eCommerce and NFTs

Non-fungible tokens are an emerging technology that has been combined with 3D eCommerce, mainly to sell high-end designer products and to create digital twins of these products that can be used in games and the metaverse. This creates opportunities for brands to increase their revenue by leveraging 3D technology and NFTs to promote items at premium price points. Here’s a rundown of how NFTs work with 3D eCommerce and how brands can use them to increase their revenue.

What Are NFTs?

Non-fungible tokens are encrypted digital assets with unique identifying codes which distinguish one NFT from another. They are stored on digital ledgers known as blockchains. They can be sold or traded.

Because NFT tokens have unique identifying codes, they are referred to as “non-fungible,” meaning that one token cannot be interchanged with another token. The term “fungible” comes from a Latin root word for “function” which, in this context, carries the sense of something functioning or serving in the place of another thing. Since each NFT token has its own unique code, it cannot function as another token.

How Can NFTs Be Used in 3D eCommerce?

In 3D eCommerce, NFTs have proven to be a source of revenue by allowing sellers to provide designer products verified by NFT tokens. A high-end application of this strategy is selling limited-edition products at a premium price point.

For example, luxury fashion designer Louis Vuitton partnered with video game franchise League of Legends to offer an exclusive clothing collection. The collection included about 40 products, ranging as high in price as a $5,000 leather jacket. Other luxury fashion brands such as Balenciaga have duplicated this strategy successfully. When the physical product is purchased it comes with an NFT digital twin that can be used to “dress” the buyer’s avatar in the metaverse or other digital spaces. 

NFTs can generate revenue for sellers both upon their initial sale and in secondary markets. Depending on the arrangement, the initial seller may get a percentage each time an item is resold on the secondary market. This is a new path to multiple revenue streams that was not possible before the rise of NFTs. Undoubtedly, brands will continue to develop new ways to leverage this revenue source as NFTs become more widespread.