Amazon, the world’s largest e-commerce company, is reportedly preparing to enter the world of non-fungible tokens (NFT) with the launch of its own Marketplace, reportedly scheduled for April 24.
According to Yahoo Finance, the new “Amazon NFT Marketplace” or “Amazon Digital Marketplace” will feature 15 NFT collections that will initially be available to customers in the United States. The company is expected to expand the service to other countries in the future.
Reports of this new interest in NFTs began circulating in January. This new development would give the rumor a date. The idea doesn’t seem that far-fetched, given that Amazon CEO Andy Jassy said in April 2022 that the company was open to selling non-fungible tokens (NFTs) “in the distant future.”
What will the Amazon NFT Marketplace bring?
One of the most interesting features of this Marketplace is the ability to link NFTs to physical goods delivered to users’ homes. Collectors can use their credit cards to purchase NFTs and receive their products at home, just as they would with a regular purchase.
The initiative aims to simplify NFT purchases and eliminate the natural complexities of the crypto world, allowing users to experiment with the technology without understanding its mechanics.
An anonymous Amazon source interviewed by Blockworks stated that the retail giant can onboard millions of users without educating them on topics such as self-custody or setting up a MetaMask wallet.
According to the reports, Amazon has contacted several Layer 1 blockchains, gaming companies, blockchain companies and others to collaborate on this project. They have also hired more staff and plan to hire several developers with proven expertise in Web3.
NFTs are now mainstream
As reported by CryptoPotatomore and more giants from different industries are turning to NFTs to boost their sales. From sportswear companies such as Adidas, Puma and Nike to luxury fashion companies such as Dolce & Gabbana and Gucci, they have all launched their NFT collections to stay competitive in an industry that demands innovation.
According to Dune Analytics, the company that has benefited the most from NFT sales is Nike, with sales of nearly $186 million, followed by Dolce & Gabbana with $23.6 million.
While these numbers may represent a small amount compared to the amounts both companies earn, they show that it is a growing niche that can be profitable if leveraged properly.
Therefore, Amazon’s initiative could take NFT adoption to another level. The company has a huge subscriber base of approximately 167 million users of its Prime service, who will be the first to receive information about the launch of Marketplace directly from the company.
How does it compare to OpenSea?
OpenSea is currently the second largest NFT marketplace; although Blur has recently taken its place, the “OG” NFT marketplace has accounted for more than $3 billion in sales since its launch in 2017. The platform allows anyone to create, sell, and discover NFTs. In addition to Blur, the platform competes with other marketplaces, including Nifty Gateway, Rarible, and SuperRare.
Amazon’s NFT Marketplace aims to simplify the NFT purchase process and provide users with a seamless experience. However, it remains to be seen how the new Marketplace will compare to existing platforms like OpenSea in terms of functionality, user experience and sales volume.
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