Category: technology

What Web 3.0 Means for Small Businesses

By Vitaly Gerko

As we enter the era of Web 3.0, small businesses have the opportunity to thrive in the digital economy like never before. New technologies and platforms are emerging, allowing small businesses to compete with more prominent rivals. However, navigating Web 3.0 can be challenging, and small businesses may need help keeping up with the latest trends and developments.

In this article, we’ll explore how Web 3.0 is shaping the future of the digital economy and what small businesses can do to stay ahead of the curve.

What is Web 3.0?

Businesses are embracing the new era of technology by adopting Web 3.0, the third generation’s internet, also known as the internet of the future. While there is no established definition of Web 3.0, its decentralization, artificial intelligence (AI), and machine learning (ML) principles are the secret key to Pandora’s box.

Before the emergence of Web 3.0, the internet had undergone significant transformations with the advent of Web 1.0 and Web 2.0. During the rise of Web 2.0, web pages became more dynamic, allowing users to create and contribute diverse content. This led to the development of applications and social media platforms, which actively collect user data, becoming a valuable source for monetization and communication. Yet, Web 2.0 remained centralized, with technology giants controlling all internet information. This is where Web 3.0 comes in. Web 3.0 prioritizes the ability of individuals to manage and create content, decide whom they want to share their data with (cookies), and leverage the technology’s various possibilities.

Web 3.0 promotes a more open internet with reduced censorship, and technology is becoming smarter, recognizing information like whether a user is human and whether news or reviews are fake. This transparency helps users find relevant pages in search results and may lead them to gravitate toward the less centralized projects emerging from the formation of Web 3.0. As a result, businesses focused on large platforms must migrate to these new projects to maintain contact with users and adopt new principles of transparency and openness.

What does Web 3.0 mean for small businesses?

For entrepreneurs to thrive in Web 3.0, they must understand their audience and habits, which is only possible with first-party data. For instance, small and medium-sized enterprises (SMEs) could leverage Web 3.0 technology to better understand customer behavior on their website and social media pages. Businesses can tailor their offerings to meet consumers’ needs by analyzing customer interests and purchasing patterns. Some companies are already utilizing this technology to track users’ exact actions on the company’s Facebook page, enabling them to create more compelling content for their audience.

In addition, businesses must keep up with the latest technological developments and be open to new ideas. For example, blockchain technology has significant potential in Web 3.0, especially in the areas of decentralization and security, so keeping abreast of the latest advancements is critical to staying ahead of market competitors. On top of that, building strong partnerships and collaborations with other like-minded organizations within the Web 3.0 industry can help businesses achieve their goals. Web 3.0 technologies have helped companies to improve their performance and become rising industry stars, gaining market share with their competitive advantage.

Simply put, your business cannot stay in Web 2.0. While some corporations may remain stubborn and continue to operate in Web 2.0, they risk falling behind their more tech-savvy competitors. The consequences of failing to keep up with technological progress include lost market share and reduced profitability.

Web 3.0 technology can help small businesses get started with their operations in the market by providing several benefits, including:

The potential to reach new markets. Web 3.0’s global and decentralized nature makes it possible to start a business in a different country without physically being there.

Strategic use of artificial intelligence. AI will allow corporations to improve efficiency, streamline processes, and better understand customers’ wants and needs, among other critical factors that drive businesses forward. AI, in particular, has the potential to replace manual work, analyze large amounts of data, identify patterns, and make predictions to advise corporations on vital decisions. Decision-makers can thus rely on these projections to make wise choices. Companies that leverage these capabilities can access valuable insights, improving their business operations.

Personalized customer service and marketing. Web 3.0 can improve customer engagement by offering businesses numerous creative ways to interact with customers, such as personalized content, targeted advertising, and interactive experiences. For example, the availability of real-time booking, guest, and billing information can simplify the hotel business process. Visitors entering your property will have their transactional information recorded in the ledger. Using Web 3.0 technology, it is possible to offer tailored services based on each user’s past purchases and interests. Smart contracts and automation capabilities further streamline business operations and reduce the need for manual processes, thus increasing business efficiency.

More secure transactions. Thanks to blockchain technology and its straightforward applications, people can make monetary exchanges in a secure environment in Web 3.0. People can now send and receive funds from any part of the world without going to the bank to process the transactions, as blockchain technology enhances transparency and trust between businesses and customers by providing verifiable records of the transactions.

Safer storage of customer information and data. Web 3.0 also offers decentralized and encrypted data storage capabilities, which enhance data security and protect sensitive customer data, preventing potential cyberattacks.

How to implement Web 3.0 in your small business

Begin your journey to Web 3.0 by educating yourself about the concept, its potential impact on your industry, and understanding how crypto wallets work in the infrastructure of the blockchain industry. Start reading about blockchain technology, decentralized applications (dApps), and other Web 3.0 technologies. Once you’ve grasped the new technology, you can identify opportunities for your business. Pinpoint the areas where these technologies could be applied. You might explore blockchain-based supply chain management, decentralized finance (DeFi) solutions, or you might consider leveraging dApps to create new products and services.

Collaborating with experts in blockchain, smart contracts, and other relevant technologies is another vital step to successfully entering the Web 3.0 era. Businesses could contact technology companies and consultancies specializing in Web 3.0 solutions or look for collaborations and partnerships with other businesses that have successfully transitioned to Web 3.0.

Experimenting with new technologies is essential in order to embrace Web 3.0 and decentralization fully. So, start experimenting with Web 3.0 in all forms, take risks, and explore new business models, leveraging the full potential of the technology. Be open to new governance models and decentralized decision-making processes, and be prepared to cede some control to the community in exchange for the benefits of decentralization.

To enter the Web 3.0 market, you could also use some tools and strategies to your advantage. Decentralized finance is an attractive area for founders and business owners because it allows the creation and use of decentralized financial applications built on blockchain technology, providing new opportunities for fundraising, investing, and trading.

Non-fungible tokens (NFTs), unique digital assets representing anything from art to music and virtual real estate, provide new opportunities for monetizing digital content and creating an exceptional customer experience.

Additionally, businesses could create applications running on blockchain technology with the help of decentralized applications. Such an approach could open new doors for creating and using decentralized services, including social networks and marketplaces, among other vivid illustrations.

Leveraging artificial intelligence is also an effective way to improve a business’s processes and operations, analyze large amounts of customer data, identify patterns, and personalize consumer offers. AI offers founders a unique perspective on automation, optimization, and innovation options.

Preparing for the arrival of Web 4.0

In the future, there will also be Web 4.0, a term used to describe a hypothetical version of the internet. Most experts use the term Web 4.0 to describe the next stage of Web 3.0 or explain concepts that go beyond Web 3.0. Some people speculate about using advanced technologies, such as artificial intelligence, augmented reality, and virtual reality, in Web 4.0.

Since no one knows what Web 4.0 holds, it is important for businesses to stay aware of emerging trends and technologies in the digital space to position themselves to adapt and thrive in a rapidly evolving market.

FAQs about Web 3.0 and small business

What is Web 3.0?

Web 3.0 represents a new phase in the evolution of the internet. While Web 1.0 was focused on linking websites, and Web 2.0 brought about the creation of content ecosystems and passive consumption, Web 3.0 creates a paradigm shift by ushering in active interaction with a virtual ecosystem that addresses the limitations of its predecessor.

How can Web 3.0 assist small businesses?

Web 3.0 will help small businesses through the strategic use of artificial intelligence, personalized customer service and marketing, automated business processes, more secure transactions, and the safer storage of customer information and data.

How can businesses leverage Web 3.0 to expand their operations?

The expansion of any business is based on cultivating its user base, resulting in increased revenues, EBITDA, and margins, all crucial performance indicators. Web 3.0 will cause users to gravitate toward new sources, services, and platforms, compelling businesses to follow suit in order to maintain growth.

About the Author

Post by: Vitaly Gerko

Vitaly Gerko, an expert in MarTech and Web 3.0, is co-founder and CPO of the AdTech platform OTM, and is a startup mentor in tech. He works with such companies as Google, Meta, and Amazon Ads. He is also a limited partner at True Global Ventures.

Company: Online Technology and Media (ОТМ)
Website: www.otm-r.com/en/main-page
Connect with me on LinkedIn and Twitter.

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Cross-Border E-Commerce Is Booming—Does Your Website Get It Right?

By Rafael Lourenco

Consumer attitudes are changing about ordering online from overseas, and global e-commerce market forecasts reflect that shift. Analysts predict 25% compound annual global e-commerce growth through 2028, when the market will be worth more than $3 billion, up from $794 million in 2021, per Vantage Market Research.

This growth represents an opportunity for brands and retailers to grow their customer base and insulate themselves from economic fluctuations in their home markets. To build a thriving cross-border presence, brands and retailers must understand why consumers shop across borders and how to adapt their customer experience (CX) for different markets.

In our
2022 Consumer Attitudes Survey on Ecommerce, Fraud & CX—which included more than 5,000 online shoppers evenly distributed among the United States, Canada, Mexico, Australia, and the UK—6% of respondents said they prefer to buy from overseas retailers. That was an increase from 4% in 2021, and among that 6%, more than half said their preference for shopping internationally had increased over the past 12 months.

Also 40% said they preferred shopping with overseas and local retailers equally, and 18% of those consumers said they increasingly preferred buying from a mix of local and cross-border sites. At the same time, consumers are discovering more offshore brands and retailers through social media, with 75% of consumers saying they have purchased from a brand because they engaged with it on social media.

Cross-border growth opportunities for retailers and brands

Turning international followers into loyal customers requires strategic planning. Here are some of the key best practices for e-commerce sites seeking to succeed in cross-border commerce.

Identify your first cross-border market

Start with one international market or region that shares some attributes—language, payment methods, or customer demographics—with your domestic market. For example, a French clothing store might opt to expand into another EU market because of the common payment options before expanding outside the EU.

Go beyond basic language localization

Update your site to ensure that all customer touchpoints are provided in your target market’s language, including product descriptions, shipping and return policies, and customer service chatbots. As tempting as it might be to control costs by relying on an automated translation of your site content, a translation by a professional in your target market is a wise investment, especially if the target market uses a language with many regional variations, such as Spanish, Portuguese, or English.

Provide preferred local payment options

The popularity of payment methods varies by market, but digital wallets appeal to consumers in multiple regions because of their convenience and security. In the same report, 70% of respondents said that having the option to pay using alternative methods like digital wallets makes them feel “more secure when placing an online order.”

In addition to digital wallets, it’s wise to offer a buy now, pay later option, as well as any other local payment methods that are popular. For example, debit, bank transfer, and cash payments through convenience store kiosks are preferred by many Mexican online shoppers. Consider also how you’ll handle multicurrency payments, sales tax, and value-added tax collection for overseas markets.

Set shipping expectations for cross-border customers

Shopping across borders opens a whole world of products to consumers. The trade-off is often slower delivery times and higher costs. Communicate that information clearly, so there are no surprises at checkout. More than one-third (39%) of respondents in the survey said they’d abandoned at least one purchase at checkout in the previous year because “shipping was expensive or would take too long.”

Welcome cross-border customers in your loyalty program

One way to compensate for higher shipping costs and longer delivery times is to invite cross-border shoppers to join your loyalty program as soon as they arrive at your website. Allowing new customers to start earning points toward future purchases, bonus items, or shipping discounts appeals to virtually all customers, including the
49% of Gen Z and Millennial shoppers who already belong to at least one retail loyalty program.

Add cross-border holidays to your marketing calendar

Boxing Day, Singles Day, and El Buen Fin aren’t online shopping events in the United States, but they’re major e-commerce events in other countries (the U.K., China, and Mexico, respectively). Virtually every market has a unique sales event or national holiday that your store can leverage through social campaigns, seasonal promotions, and products selected specifically for these events.

Align your fraud prevention with local consumer behavior

By now, it should be clear that customers in other markets won’t behave exactly like those in your domestic market. That means your fraud screening rules and practices need to adapt, so you can approve as many good orders as possible in your cross-border markets.

For example, if you’re expanding into a country with a developing e-commerce market, many of your customers may have a limited history of online purchases—or perhaps none—before their first order in your store. In this scenario, the order history parameters that work well for identifying fraud in developed e-commerce markets may be counterproductive. Know what good customer behavior looks like in your new cross-border market and adjust your fraud controls as needed.

Building the foundation for future cross-border growth

Finally, choose the KPIs for your first cross-border initiative so you can track your progress and make CX improvements over time. Once you have the process down and have a track record of successfully selling into one international market, it becomes easier to deliver an excellent customer experience as you expand your online business even further beyond your own borders.

About the Author

Post by:
Rafael Lourenco

Rafael Lourenco is executive vice president and partner at ClearSale, and holds more than two decades of experience providing e-commerce fraud detection and prevention services in major international markets.

Company: ClearSale

Website:
www.clear.sale

Connect with me on
LinkedIn, Facebook, Twitter, and Instagram.