Tech powerhouse Amazon plans to launch NFTs granting ownership of physical goods to improve customer experience and draw more shoppers.
Amazon (NASDAQ: AMZN) is developing an initiative centered around its non-fungible tokens (NFTs) that would enhance customer experience. According to reports, the e-commerce giant seeks to tie NFT ownership to physical goods delivered to customers. This development marks a significant upgrade from Amazon’s initial efforts to launch a digital assets enterprise.
The Amazon NFT platform could go live on April 24th, with the company looking to notify every Prime customer in the US once it does.
By tying digital assets to real-life items, Amazon seeks to stoke further interest in NFTs as viable assets worth owning. For example, shoppers can purchase a fashion-centric NFT linked to a clothing item and pay with a credit card. The same concept also applies to every other available item category for sale.
Amazon CEO Weighs In on Projected Company NFTs
Speaking on the possibilities that abound from the NFT scheme from a broader point of view, Amazon CEO Andy Jassy said:
“I expect that NFTs will continue to grow very significantly. We’re not probably close to adding crypto as a payment mechanism in our retail business, but I do believe over time that you’ll see crypto become bigger and – it’s possible that Amazon ingrates crypto payments.”
With Amazon’s large customer base, an introduction like this NFT initiative could reach unprecedented magnitudes. An inside source also touched on the projected scale of the initiative and its feasibility, saying:
“We knew it was possible, but now it seems like it’s really happening. That’s going to affect the existing players in the space – if they execute and do this right and are smart about it.”
However, the timing of the NFT launch still seems to be in a constant state of change despite the April launch date. Meanwhile, two other inside sources claim that Amazon will roll out the initiative in May.
The supporting blockchain technology for the NFT agenda remains unclear, with Amazon considering several options. Reports state that Amazon representatives working on the project have already reached out to a host of blockchain projects. These include Layer-1 blockchains, blockchain-minded gaming platforms, and other emerging and established companies.
Amazon seeks to create a private blockchain for its NFT initiative, though it remains unclear how this goal will materialize. Over the last year, the multinational tech company has grown interested in Web3 technologies.
Last December, Amazon revealed a new NFT documentary that features artists, collectors, and industry specialists across the globe. In the documentary, these denizens share their experiences with digital assets and the positive impact of tech and art mergers.
Titled ‘NFTMe,’ the documentary has featured more than 50 guests in its inaugural season, including Peter Rafelson and Cheryl Douglas.
Amazon is also funding other popular NFT platforms in addition to its own projects. For instance, the tech giant played a key investment role in the $20 million Series A funding of NFT animation studio Superplastic.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.