The future of Ecom with Web3.

Where Customers become users and creators become brands. 

It all started with the internet. The initial promise of the internet was to push power down into the hands of people.

To all of us. And it has in some way. It has weakened the original gatekeepers like Publishers, Music Labels, and TV Networks. They all lost their power and prestige. But the path is not a straight line; the road has many bumps. At the same time, the internet pushed the power into the hands of platforms like Meta, Google, Microsoft, and a few others.

This was unexpected. But this will not stand for long. In the coming 5 to 10 years, we will see a massive shift in power. And it's already happening. We went through 3 generations of the internet. The first generation web 1.0 was only pushing information by webpages and blogs. The second generation Web 2.0 is known for its interaction. It was the rise of the social media platforms. The 3rd generation web 3.0 is known for its decentralization. This power shift is away from the big platforms to creators and communities. A creator is someone whose personality is their brand. Using their passion for a living

They generate new ideas, push boundaries, and push cultures. In the future, the creator will own his/her relationships with their audience. They didn't rent it, they will own it, And all of us can invest in their success.

Imagine already:

Top athletes have more followers than the team that they play for. Lebron James has more followers on Instagram than the Lakers. Cristiano Ronaldo had more income from Instagram than his former Club, Manchester United (one of the biggest brands in the world). It's unheard of. But if the power will shift to the creators, we must rethink some things. Because now, the platforms like Instagram and TikTok. Like X, Empowers the creator to connect with their audience. Today, creators fully depend on those platforms. The platforms are in charge.  But if we have learned one thing as a business, you want less dependency.  I'll not say that the platforms will disappear. But new platforms will rise, and platforms will fall. But all platforms will see THE power of these creators towards their audience.

And their dependency on these creators. So, they will hand over more and more power to creators overtime to fulfill creators’ and audiences’ needs. And this is a good thing. The more creativity there is in the world, the better for us all. As I mentioned, stability and dependency are essential for business. And that is a considerable risk now, on the web 2.0 as we know the internet now.

If Instagram disappears today, you lose your audience and the most important communication channel you depend on. Even you are censored now if you spend less advertising money on those platforms. 

Also, Data is a big part of this. All data belongs to the platforms; that is why they are so powerful. They can predict your interest and needs and sell this information to the highest bidder. Luckily, Today, we are beginning a new internet—web 3.0. This completely new technology makes new ideas possible. Cryptocurrency, social tokens, non-fundable tokens, decentralized organizations, artificial intelligence, smart contracts. This group of ideas is known as Web 3.0.  And each of everyone is building on an infrastructure called the blockchain. The blockchain removes the need for an intermediary. 

So there will be less dependency because there is not an Intermediary.

What do I mean by that, no intermediary? I’ll give you an example to explain:

Everyone has a bank account. With this bank account, you trust an intermediary, in this case, the bank, to take care of the transaction of your money. With blockchain, you don't need an intermediary like a bank. Therefore, the blockchain opens the potential for new ideas. There is nothing new about digital money. What is new is that you don't need a middleman. And this power shift from the one who holds your money to the individual. That is what blockchain and Web 3.0 stands for There is an opportunity here.

We can help creators establish money and direct financial relationships with their audience. Independant from any platform. One thing you also need to know is the value of Smartcontract. As you may know, we live in a contract society. Everything we do, we put into the contract. Therefore, Ethereum created the opportunity to add ‘smart contracts’ to the blockchain. You can program your terms and agreements into code. And the smart contract will execute and take care of these agreements. If you hold a smart contract, the agreement can be that you receive a percentage for every sale and re-sale. The smart contract takes care of all these transactions in your wallet. No bank, no lawyer, or accountant is needed. 

The rollout of Web 3 technologies comes in waves. We already experienced two waves in crypto and blockchain solutions, and we are now surfing the AI wave. 

What will this mean for the Future of E-commerce? 

A major change I see is That we don't want to own stuff anymore. And why would we?  Why would we own products? Why would you own a sofa? The need you have is that you want comfortable seating. Why would you own a bike? You want transportation from A to B. Primarily we want to USE a product, not OWN it.

And it is already happening. This is the start of a new era in E-commerce called LeasEcommerce. The success of Swapfiets shows us that people want to rent a bike. And the brand is taking care of the maintenance of this bike. Loverly rent-out boxes filled with toys for each age of your kids. You can swap your box every three months for a new one. In the field of fashion, we already know the concept of Rent-a-runway. But for fashion, I as a consumer, want to rent 4 of 5 styles, complete outfits every season. And return them afterward. And receive 4 or 5 new ones for the next season. 

Think of the benefits from a consumer perspective. 

You need less space. 

You have less waste. 

You have less mess.

To give you a better understanding of the advantages of this system shift. I'll tell you a story about Philips and Schiphol. Years ago, Schiphol reached out to Philips and Ask Philips if they could provide Schiphol with light. Of course, could Philips provide light? But when they sent out their proposal, Schiphol replied that they didn’t want to own the lightbulbs. They want Philips to take care of the light. Philips agreed, but soon after that, they noticed some risks. The fuze of the light had a lifetime value of a maximum of two years. In this case, they must change all the lightbulbs every two years, which was a hell of a job. So Philips decided to separate the fuse and the light bulb. They also worked to enlarge the endurance of the lightbulb itself. That has saved them a lot of money over the years. This story tells us that we need to rethink production and product development. To create a healthy business for the future. 

Another big change for businesses is to own products and resources.

This is a graph of the cotton prices over the last 12 months.  Owning your resources will create enormous value in your business over time. If you rent out more products You will own more resources. Which has huge consequences for the value of your company and valuation.

Imagine that Tiffanies will rent out their jewelry. Instead of selling it. The rings and bracelets will be worn for 6, 12, or 24 months. After this period, consumers can change them for a new pair. Nowadays, this jewellery will end up in a closet and will stay there for the rest of the owner’s life. That is an absolute pity.  A product with value laying in the dark doing nothing. In the new system, the jewelry will find a new user and/or be depatched and used for a new jewel. In this way, products become Assets for brands. 

What is an Asset? An Asset is a product that delivers you money overnight while you sleep. You don't depend on production capacity or your working hours. You make money 24/7. A good example is your house. If you own a house, you can rent it out and make money overnight. Airbnb makes it possible for every human to rent out their asset. So you can go on Holidays cost-neutral. 

But How? 

We know the importance of purchasing frequency. We know the importance of Customer Lifetime Value: It will lower your cost and higher your margins. To enlarge your Customer Lifetime Value, you need to Enlarge your Product’s Lifetime Value. There is a real treasure to unlock value in multiple ways. This movement is already on the roll: You can think of 

Re-Pair

Re-Sale

Re-Make

Re-Purpose

To Give you an Example. Patagonia is doing well on Re-pair. They work with a Giant company Trove. Who is taking care of Pagagoina’s Reparations. But also Photografie and distribution for Re-sale. Faume is doing the same in Europe for brands like Isabel marant, Ami Paris, Sandro and many more.

Re-sell is already a colossal Trend. Brands like Axel Arigato, Net-A-Porter, and Cos en H&M fully embraced Re-sell. And, of course, we all know the succes of Vinted. The most interesting part is that there is already software that can provide Re-sell solutions for brands. You can pay out your re-selling customers with store credit. In this way, you hold the cash flow streams within your E-commerce. Which is good for purchase frequency, customer satisfaction, and enlarging your Customer lifetime value. Re-sell, for me, is a fase between the old world and leasE-commerce. 

Also, Re-made is on the Rise. A good example of this is the Brand 1 of Paris (https://www.1offparis.com/) This brand creates high fashion designs out of worn and 2nd hand clothes. If you look at this. These are beautiful pieces. I can also Imagine that brands like Drole de Monsieur or Kith will introduce Re-made collections. Which can bring this trend to mass adoption. 

The last trend to enlarge your Product’s Livetime Value is Re-purpose. As I mentioned, the resources of your product have value. But also most of your production waste. Like in nature, waste can be fuel for one oneother. In the meat industry in Switzerland, there are more than 230,000 tonnes of waste each year from slaughterhouses

The company Elos made a range of switches and sockets using bone meal. The moment products end up in a closet and the product is not used anymore. It lost its value. But still, this product has value. So, Re-sale, Re-use, or Re-make, or Re-purpose it.

As a business owner, you can make this happen. And it is a significant opportunity. A product is an asset that you can rent out over time, which creates Value over time. It’s not a new concept. It’s already there. 

The only major challenge is how to finance your business in the future. 

As always - How to Finance these ideas?

The way we finance our ideas nowadays is predated the internet. The primary way to finance your idea or company is to borrow it as debt. And as any of you struggled with student loans or a mortgage. There is much downside of dept.

As a creator, you use technology to raise money and finance your business. You sell your equity, and you set the terms. For instance, for a 100 euro investment, you pay 5% of what you make for the next ten years. Or when the product reaches its Re-purpose phase. And we can codify these terms into a smart contract. Or You can connect the ref-share you make or the direct sales you make all to one token. Who, Everyone ( with an internet connection)  who believes in you can buy.

By doing so, you are allowing your audience to share in your success. With this ease of raising money, you have more time to explore and create. And with less paperwork and institutions in between, you have more money to invest in your ideas. In conclusion. New technologies will bring us a lot of advantages. 

Advantage for consumers: 

You need Less space 

You have less garbage

We still can consume the way we do

Become a stakeholder of your favorite product or brand.  

Everyone can join (cellphone + internet)

Advantage for Businesses:

Enlarge your CLTV

Uplift your customer frequency

Customers become stakeholders & and ambassadors

Make financing more easy and less risk

Less waste 

Sustainable & Circular 

More predictable 

Brings Value to your business over time

Makes money 24/7

Less administration/paperwork 

We will create a world where anyone has an appealing idea. Can turn that passion into a living. Which, at the same time, affects the most significant shift of power from institutions to individuals in history. Become that creator as a brand, as a company. 

It’s only a mind-shift away.