Customers want a more intimate relationship with the brands they love. Web3 connects the dots with digital ownership, exclusive offers, and community membership.
Brands have the opportunity to meet customer needs, increase sales, and build their presence on the evolving internet.
But how can a brand jump into web3? They can meet customer needs with a web3 marketplace.
Using a white-label solution, brands provide a great experience that meets their high standards, enforces royalties, and fosters a committed, passionate customer base.
Together, we'll dissect and define the web3 marketplace. Then, we'll dive deeper into how a marketplace works in web3 and some use cases for consumer brands.
What is a web3 marketplace?
Web3 marketplaces allow users to buy, sell, and trade digital assets peer-to-peer with automated transactions and enforced royalty payments to the brand.
Digital assets can be “digital-only” artwork, avatars/skins, trophies, and/or membership passes, and digital assets can also be “backed” by redeemable physical goods and experiences.
Sometimes they are initially earned or distributed for free by the brand or offered at a price. The vast majority of transactional activity occurs after the primary drop (if they’re in demand by a hungry audience). This means your customers want and need a place to discover available assets, interact with other customers, and ultimately trade.
Why would brands want to drive this behavior off-platform to a third-party marketplace when they can host a white-label marketplace instead, thus controlling the experience and collecting royalty payments?
Key characteristics of web3 marketplaces
Web3 marketplaces allow sellers to list their digital assets for a “buy now” price, while potential buyers can make an offer.
Mojito enables brands to accept payments with credit cards or cryptocurrency and facilitates royalty payments to multiple parties automatically and instantly, regardless of payment choice.
When customers make the purchase, a smart contract automatically kicks in to broker the transaction. It is then recorded on the blockchain, updating the asset’s provenance and showing proof of ownership.
Customers use branded digital assets to access special events and exclusive rewards, and to share their love for their brand through profile pictures and community engagement.
It's one of the most exciting new ways to build brand loyalty and increase market reach. As customers continue to adopt web3, brands can meet them right where they are and lead the way.
Web3 marketplaces offer direct engagement with and between fans, a global economy, provable scarcity, and engaging community features.
Successful examples of third-party marketplaces include OpenSea, Rarible, and SuperRare. But third-party web3 marketplaces operate like Amazon or eBay—with your brand mixed together amongst many others, you have no control over user experience.
Worse, the leading web3 marketplaces today do not enforce royalties, so trading on these platforms generates no revenue for brands.
Alternatively, brands can provide customers with a white-label marketplace using Mojito that represents their organization and generates revenue from secondary trading.
Web2 vs. web3 marketplaces—and why web2.5 matters
Brands face several challenges they cannot ignore. They must strategize to maintain a tricky balance as customers progress at different paces within a fast-moving, innovative environment.
1. Web3 is coming
Like its predecessors, web3 is a major era in the internet’s evolution. The adoption curve is up and running, and as time goes on and technology develops, new adopters will join in at each stage. One day, "web3" will be part of the unified internet experience.
All that to say, brands need to invest in web3 marketplaces to serve customers today and prepare for the shift within the next few years.
Marketplaces should provide all the tools for web3-savvy customers to take full advantage of web3—resulting in highly engaged and loyal customers who advocate for your brand.
2. Many people still only use web2
Some customers will be slow to adopt web3 technologies. Others will only adopt web3 tools once they have no other choice.
Brands need a web3 marketplace that is aware of this developmental stage. Marketplaces should be user-friendly so that anyone can participate no matter where they are.
The easier it is to understand the web3 marketplace, the more your customer base will respond.
Mojito's innovative solution ensures that a new web3 user can participate in these experiences without the learning curve. They can purchase with a credit card and manage their digital assets with an invisible wallet.
3. Web2.5 solutions are necessary
The last two considerations lead us to this critical point: Marketplaces should provide "web2.5" capabilities.
What does that mean? It's the ability to integrate web2 and web3 simultaneously during the internet's innovative transition.
This is key for customer adoption and brand success. Customers can purchase an NFT from your marketplace with either a credit card or cryptocurrency in a new ecommerce experience that feels familiar at the same time.
You provide a seamless process and functionality for new web3 users and an efficient, high-quality system for web3 enthusiasts. A web2 marketplace cannot fulfill these web3 needs, and not every web3 marketplace can bridge the gap. Mojito ensures every customer can get involved and join your brand’s community.
4. Web3 marketplaces should be secure and easy to use
By now, you've noticed many moving pieces in the web3 ecosystem (and that's not including web2 integrations). A lot can go wrong without the right partner, resources, and tools.
Brands should pick a partner to facilitate all the above issues through a secure process and system while refraining from overcomplicating the customer experience.
Today, you can kickstart your web3 marketplace strategy and create unforgettable customer experiences and engagement opportunities with Mojito
Web3 marketplaces for consumer brands
Consumer brands can transform their markets with beautifully designed web3 marketplaces. And the experience doesn't end when a customer purchases your physical product. They can then use their assets to gain access to events, exclusive offers, and more with token gating.
Elegant web3 purchases
Since leading consumer brands hold their design to a higher standard, they need a marketplace to represent their brand well.
For example, when Sotheby's, the distinguished 300-year-old auction house, partnered with Mojito, it knew of third-party marketplaces like OpenSea.
The dilemma was that the brand needed control over the experience. Selling on third-party platforms is like a retail shop selling a product on Amazon—there's almost no say over the experience, ultimate offer, and process.
Sotheby's knew that if it wanted to create a luxury experience that matched its long-standing expectations, it needed to build a high-class web3 platform everyone would love. Sotheby's was acutely aware of a new generation of wealth that wanted to purchase digital assets (and have the option to pay in crypto).
That's when the high-end auction house and Mojito created Sotheby's Metaverse. In this beautifully designed marketplace, collectors and investors can purchase some of the most valuable artworks in the world.
Mojito took care of web3 complexities, compliance and security issues, and cryptocurrency payments—ensuring the high-quality Sotheby's customer experience. More notably, it can now serve a fast-growing, new-generation collector community that wants to participate in digital art and web3 assets.
Buyers have loved the experience. Sotheby's proudly offers the digital luxury auction experience it wanted. And the results speak for themselves with over $130 million in sales since!
Sotheby's now builds on top of its legacy by leading the future for digital ownership.
"Mojito has given us a platform to provide the best possible web3 experience for our clients and scale our web3 strategy for the future." — Sebastian Fahey, Managing Director of Global Fine Art, Sotheby's
Community and brand loyalty features
Brands don't have to stop at the initial purchase. They can use NFTs to foster ongoing engagement, glean more valuable insights from new data sources, and even create better logistical solutions.
When Mojito partnered with the Tampa Bay Rowdies, it wanted to create the best fan experience possible on and off the field.
From that desire came the evolution of the Rowdies Digital Pass, an NFT for season ticket holders. Owners received a QR code to redeem discounts at third-party food and concession stands, providing data back to the Rowdies that was previously impossible to retrieve.
Incredibly, over half of the season ticket holders minted the digital pass, signaling excitement for innovation intertwined with brand experiences.
How Mojito builds web3 marketplaces
We provide high-end white-label web3 marketplaces built for your brand and customers.
Brands can use Mojito to freely distribute or sell digital assets directly to their customers, and then facilitate secondary trading between customers. The best part? Brands control the entire experience.
Mojito provides all the features and tools you need:
- Minting API
- Standard auction, dutch auction, buy now, and free-to-earn distribution options
- Secondary marketplace SDK
- Commerce operations like taxes and KYC/AML
- Crypto payments
- Fiat payments
- And more
Web3 marketplaces require careful consideration of technical aspects like blockchain protocols, smart contracts, user wallets, scalability, and security. But Mojito takes care of all these aspects so that you can offer a great experience backed by vetted technology and a formidable team.
Click here to learn how to implement a web3 marketplace for your brand. Your brand has a huge opportunity to create remarkable customer experiences—answer the call to next-level innovation, meet customer needs, and increase sales.