How Many Nft’s Would You Need To Sell To Buy An Engagement Ring?
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Just how lucrative are non-fungible token transactions?
What do the first ever tweet, Snoop Dogg, a yacht club and NBA collectibles have in common? All have featured, in some way, in the selling of NFTs - or non-fungible tokens.
While still in their infancy, an NFT is a cryptographic asset recorded on a blockchain that cannot be replicated. Just as you get a unique piece of art, or buy a house, an NFT is an asset that cannot be replaced by something else. It’s different to the likes of bitcoin, which can be traded for another bitcoin - making it fungible.
Blockchain is used for NFTs to usually establish sole ownership and digital provenance for each NFT owner, which can make some of the digital assets particularly lucrative.
Pictures of apes have sold for hundreds of thousands of pounds, and a number of household brands and fashion ecommerce retailers are getting in on the action. Vogue’s Business Index found that 17% of fashion brands have already worked with NFTs - and this number is expected to grow.
Boohoo has an exclusive NFT collection, Gucci has a marketplace for curated NFT artwork, and Selfridges even sold NFTs and digital fashion in its store.
The identity of your ecommerce brand is just as important as ever, and as retailers look to create bespoke ecommerce websites and experiences, NFTs can be a really impactful way to increase brand awareness. With the rise in omnichannel retail, brands need to ensure that their website maintains visibility in the space, and implementing new innovations such as NFTs and the metaverse can be a stepping stone towards this.
TikTok's role in stock cuts
TikTok has taken items going viral overnight to the next level. There are currently 23.9 million views on TikTok for the hashtag #ChristmasPartyOutfit, followed by 21.1 million for #ChristmasFoodIdeas.
The social networking app has created a new temptation for consumers. With TikTok, we visually see how items look before we’ve even thought about buying them - and it has an extraordinary power over real-life sales. Sometimes all it takes is for one person to gush over how much they love a dress or a sofa - and it sells out.
However the immediate sell-out power of TikTok and other social apps can mean that businesses aren’t prepared for such high demand.
An item being labelled as out of stock can sometimes make it appear more desirable. After all, there’s a reason why limited edition runs often work. It’s popular, yet elusive at the same time.
However the majority of the time, items being labelled as out of stock can just cause frustration from customers, and a headache for brands if they aren’t holding the right amount of inventory.
Availability is key
Retail is seasonal, and making the most of peak trading is crucial to the success of your bottom line. When there’s bigger spikes in traffic, the lost revenue from the seasonal demand of items can be enormous.
It can also have expensive repercussions for retailers. Physical stores and online brands experience the problem of stock-outs differently.
A bespoke ecommerce platform can help brands when they do experience fast growth, helping them to engage customers across each and every touchpoint, and also help with product management to ensure that information is synced across your technology stack.
What industries have the biggest stock based issues?
Remarkable Commerce looked at social media sentiment and the number of tweets from thousands of consumers in the UK over the last six months, complaining about items being out of stock, to the brand’s Twitter and customer service Twitter accounts.
It looked at the tweets to 20 of the most popular brands in eight industries - 160 brands overall. The companies are all in different sectors in consumer ecommerce, ranging from sporting goods to jewellery, fashion to supermarkets and more.
The industries most at risk of stock-outs:
1. Supermarkets and grocery stores
3. Home and Furniture
4. Consumer Electronics
5. Sport Goods
6. Health and Beauty
7. Luxury Goods
The research found that, on average, each supermarket had at least 117 complaints about items being out of stock - more than four times any other industry.
Despite many being fondly known for their Christmas adverts during this time of year, supermarkets will struggle to achieve festive cheer from their consumers if items they want are sold out, especially when food and drink is so important to people during the holiday season.
Recent research from Retail Insight that polled over 1,000 consumers found that nearly half (45%) of shoppers found that more items than usual were not available or missing from their online shopping orders.
By industry explained
Fashion and Garden
Fashion and garden came in second. Fashion is often synonymous with stock issues - ranging from the specific size being sold out, to the entire item range - especially when it becomes viral and popular on social media.
But with demands for new outfits for Christmas parties, markets and dinners, fashion retailers need to ensure that their inventory is properly managed to cater for demand.
The new year often also means new decor and fresh furniture for consumers, but it’s hard to turn the TV on towards the end of December without seeing an advert for a furniture sale. However, with huge lead times in the furniture space, and the cost of transportation increasing dramatically in the last two years, companies that can reduce the delivery time and have stock to hand are likely to build the best brand equity and consumer loyalty.
Store and web integrations
Brands can also take advantage of alternative fulfillment options too, such as store and web integrations to help the whole omnichannel experience. If a store has extra stock but the website is sold out of an item, the store can send stock back to the site - but this still counts towards store sales, complimenting the high street and the ecommerce offering.
Back in store reminders need to be acted on ASAP
One of Remarkable Commerce’s clients has had almost one million requests (938,934) for back-in-stock products in 2022. While this is just 3.5% of the average traffic for the year, 58% of this figure received a confirmation email when the item was back in stock. This suggests that over 392,000 requests were unable to be made - and customers could be heading elsewhere if the items aren’t bought back into the inventory fast enough.
Replatforming to Aid Growth
During a time where many businesses are aiming for substantial growth, if your digital store isn’t properly equipped to handle it, you may easily end up with many systems that don’t talk to each other. Not only is this not ideal for keeping on top of stock, but it also means more manual tasks, leaving more room for human error.
A poor website that doesn’t match your goals can not only cause a loss of sales, but also reduce customer satisfaction. This can impact profitability, and your brand reputation. It’s clear that supermarkets, fashion and home retailers need to prioritise inventory management to enhance the customer experience - and not leave it too late.
Read our whitepaper on how ecommerce replatforming can help you to realise your commercial gains and grow your business effectively, here: https://remarkable.net/ecommerce-replatforming/
Utility NFTs go beyond simply being a unique digital asset. Utility NFTs often grant the owner specific privileges or rewards that they could not previously access. This includes exclusive access to a real estate community, metaverse land access and even a free holiday to a mystery location on a random date each year.
Retailers specifically are using utility-based NFTs as a clever tool to create an exclusive waiting-list for people to enter their metaverses.
How many utility-based NFTs would you need to sell to buy certain items?
Number of NFTs you would need to sell at £211.47 each
Small business start up
10% deposit on a house
Launched in February 2022, the Yorkshire-based menswear retailer Joseph Turner are realising exponential growth following their re-platforming to the Remarkable Commerce platform. Their digital conversion rate grew by 20% within their first 30 days of selling through the platform. Read more about their growth story here.
When you think of NFTs, visual assets may come to mind - but they have quickly infiltrated the music industry. From The Weeknd to Muse, some of the top musicians are making waves in the NFT music industry, and anyone who purchases a music-based NFT receives a digital version of the item - either multiple buyers or make it so there is one exclusive owner.
The artist can then also make it so that they receive royalties if the buyer sells the album or digital copy on to someone else, ensuring that the artists maintain the power over their digital merchandise.
How many music-based NFTs would you need to sell to buy certain items?
Number of NFTs you would need to sell at £89.71 each
All inclusive luxury holiday to Spain for four
A new kitchen
Hermes Birkin 25 Leather Handbag in Black
Virtual worlds and NFTs go hand in hand. Virtual worlds are alternative realities where users and brands alike can create and trade digital items and display NFTs.
On OpenSea, many NFT-related items for virtual worlds include items you can purchase for your metaverse or virtual world. While it takes a lot of work to create the worlds, it can be lucrative. You’d only need to sell two NFTs to purchase your own playstation, and 20 to afford an average engagement ring.
How many virtual world-based NFTs would you need to sell to buy certain items?
Number of NFTs you would need to sell at £179.40 each
Weekly shop for the year
Private jet charter from Liverpool to Dublin
Derby County Football Club
Sports NFTs are digital assets that represent the likes of sports cards from worlds including golf, rugby, football and more. Some NFTs allow you to become an owner of a metaverse football club, while others, such as NFTeams, involve specific teams that battle against each other each month.
How many sports-based NFTs would you need to sell to buy certain items?
Number of NFTs you would need to sell at £64.1 each
Monthly rent for one-bedroom apartment in central London
Jackson Pollock painting
Derby County Football Club
NFT trading cards are often valued based on their scarcity, rarity and certification, just like real-life ones. Sometimes people are likely to pay a premium for them - however our research shows that they may be the least lucrative out of the other NFT areas.
How many trading card-based NFTs would you need to sell to buy certain items?
Number of NFTs you would need to sell at £38.45 each
First edition of Harry Potter and the Prisoner of Azkhaban
Takashi Murakami painting
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To understand just how lucrative NFTs are, and the areas where they pay off the most, Remarkable Commerce analysed the current floor price of 700 of the current trending NFTs on marketplace, OpenSea.
Items marked under the ethereum currency were counted, and then analysed against the currency conversion on the day of analysis, which was £1281.64 for every one ethereum.
Reference points for the average prices for each item analysed are available upon request.
For more information on how a bespoke ecommerce platform could benefit your brand, please visit https://remarkable.net/blog/bespoke-ecommerce/