How ShopX is Minting Profits from Physical Goods With RWAs

Shopx Web3 Ecommerce Brands

In a revealing interview, Eric McHugh, founder of ShopX, shared exciting plans for SourceX (or MerchX), a groundbreaking product set to launch later this summer that will enable brands to tokenize real-world assets (RWAs) by attaching ENFTs (e-commerce NFTs) to individual product SKUs. 

This innovative solution promises to revolutionize product authentication, lifecycle tracking, and royalty collection for brands while providing customers proof of ownership and potential access to token-gated experiences.

The concept of Web3, the decentralized iteration of the internet built on blockchain technology, has been a buzzword in recent years. McHugh, the visionary founder of ShopX, breaks it down in simple terms:

“Web1 is read-only, Web2 is read and write, but you can't own. Web3 is read, write, and own. So not only can I read content and write content, but I own the content.”

This ownership aspect is the key differentiator of Web3, and it's what ShopX aims to bring to traditional e-commerce brands through its suite of innovative products.

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ShopX Web3 Ecommerce Brands
Learn about the decentralized internet and ownership in e-commerce.

In this exclusive interview, Eric McHugh, founder of ShopX, unveils groundbreaking solutions that empower e-commerce brands to monetize in Web3. From NFT-powered loyalty programs to tokenizing real-world assets, ShopX bridges the gap between Web2 and Web3, creating incentives for mass adoption.

Reserve X: NFT-Powered Loyalty Programs Made Easy

One of ShopX's flagship offerings is Reserve X, an NFT-powered loyalty program designed to revolutionize customer retention for Shopify and WooCommerce brands. McHugh explains the simplicity of launching an NFT collection with e-commerce benefits:

“If you're a brand on Shopify or WooCommerce with zero blockchain experience, you can download our ShopX app from their app store, just like the iPhone. And then from within your Shopify backend, you can launch your very first NFT collection with e-commerce benefits for your customers in less than five minutes with no technical help.”

The benefits for brands are compelling, with Reserve X boasting up to six times higher customer retention rates compared to traditional loyalty programs and conversion rates as high as 80% for token-gated products offered to NFT holders.

Tokenizing Real-World Assets: The Future of E-Commerce

ShopX is also pioneering the concept of ENFTs (e-commerce NFTs), which attach an NFT to each product SKU. This groundbreaking solution allows brands to track the product lifecycle, ensure authenticity, and collect royalties on secondary market sales.

McHugh shared exciting plans for SourceX (or MerchX), a forthcoming product that will enable brands to tokenize real-world assets (RWAs) using ENFTs:

“MerchX is attaching an ENFT to each individual product SKU, which has a plethora of benefits.”

This technology has the potential to revolutionize the e-commerce industry by creating a more free-flowing economy where individuals can sell products from various brands and earn commissions.

The ShopX Ecosystem: Incentivizing Mass Adoption

One of the key challenges in the adoption of Web3 and crypto technologies has been the lack of incentives for users to enter the space. ShopX addresses this by creating a self-sustaining ecosystem that benefits all parties involved.

“What ShopX does is we create incentives for e-commerce brands to enter the space and then bring in their customers. And all of our products are related. So we built our solution holistically and powerfully.”

Through products like SquadX, a blockchain-based ambassador program, and the ShopX tokenized software license, the company incentivizes its community to promote and grow the ecosystem, creating a positive upward spiral for everyone involved.

Real-World Examples: From Startups to Enterprises

McHugh shared several real-world examples of brands leveraging ShopX's solutions, ranging from startups to enterprises like Fox's new show Copopolis.

“Fox's new show Copopolis, they have an NFT collection called the Crab Chickens. So I own a Crab Chicken. I get early access to content, I get access to merchandise, I can vote on stuff in the show, I get specific access to a Discord channel, and my Crab Chicken may even show up in the TV show.”

For startups like Husky Jackson, an Instagram dog influencer, ShopX provided a way to monetize their following and build a loyal customer base before launching a product.

“He launched his NFT collection, the Husky Pass. Prior to the release of his product, he was able to raise some money to create his product in the Kickstarter fashion. And then from there, what's cool is since he already had that NFT pass, people already owned his pass, they've already bought into his product, he had a base of customers to sell to.”

FAQ

How does Reserve X benefit e-commerce brands?

Reserve X offers up to six times higher customer retention rates compared to traditional loyalty programs and conversion rates as high as 80% for token-gated products offered to NFT holders.

What are ENFTs, and how do they benefit brands?

ENFTs (e-commerce NFTs) attach an NFT to each product SKU, allowing brands to track the product lifecycle, ensure authenticity, and collect royalties on secondary market sales.

How does ShopX incentivize mass adoption of Web3 and crypto technologies?

ShopX creates incentives for e-commerce brands to enter the Web3 space and bring in their customers through products like SquadX and the ShopX tokenized software license.

How is ShopX well-positioned for the RWA narrative, and what are their plans for tokenizing e-commerce?

ShopX has been working on tokenizing real-world assets since 2016, even before NFTs became popular, giving them a head start in the RWA space. Their plans involve attaching ENFTs to product SKUs from major brands, allowing customers to track product authenticity and lifecycle while enabling brands to collect royalties on resales. ShopX aims to have 80% of all NFTs be their ENFTs by tokenizing as many e-commerce products as possible. They already have luxury items like cars lined up for their SourceX/MerchX launch later this summer.

Can you provide an example of a brand successfully using ShopX's solutions?

Fox's new show Copopolis launched an NFT collection called the Crab Chickens, offering early access to content, merchandise, voting rights, and exclusive Discord access to NFT holders.

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