Brands will be able to sell their own licensed non-fungible tokens (NFTs) through Shopify's online store. Among the first basketball teams to utilize NFT is the Chicago Bulls, which has launched its own online store.
Introducing Shopify NFT (non-fungible tokens), its President Harley Finkelstein recently disclosed that the platform's merchants will be able to sell to customers directly.
Previously, before Shopify made the announcement, merchants had to sell NFTs through third parties which forced them to give up control over customer relationships and the sale.
By bringing merchants back into the picture again, Finkelstein asserted that customers are free to shop at the stores they choose.
Brands rarely sell NFTs directly on their website, instead choosing to sell them on third-party marketplaces. A brand can create its own storefront for NFTs through Shopify's solution.
Platforms operated by third parties require brands to manage their sales process differently and deliver consumers to another platform.
NFTs are subject to less control over the layout, marketing, and brand positioning when they are sold on one marketplace, and they may not align with the company's values.
Therefore, brand-managed NFT stores enhance the relationship between brands and consumers and help market Shopify to their desired audience, besides addressing these challenges.
NFTs such as those of the Chicago Bulls, are based on the Flow blockchain. Nevertheless, brands can now choose between Flow or Ethereum, and they will soon be able to choose from other blockchains for Shopify.
In addition to merchants' requests for the ability to sell NFTs, the move was also driven by the desire to provide creators and artists with yet another professional platform.
The NFTs marketplace allows creators to better connect with their fans and monetize their work via NFTs, and removing some of the friction for creators and their buyers.