Cryptocurrencies are disrupting industries left and right, and the ecommerce market stands to see major shifts in the next decade. Leading the way is a company called Ecryptostore, a platform that allows users to buy/sell goods and services with cryptocurrency or fiat.
Free Market Tokens (FMT) will power the protocol, allowing sellers to stake FMT as collateral and receive payments instantly in their chosen cryptocurrency. Buyers will be able to earn FMT simply by opening direct marketing messages relevant to their purchasing behavior.
Why Ecryptostore?
Let’s take a brief moment to consider the technological trajectory our civilization has built over time. If we narrow things down to a few pivotal moments, we see inventions like the agricultural revolution, the printing press, television, radio, and now the internet. We’re moving into a world where information is plentiful and global communication is cheap.
As computational power continues to increase exponentially with inexpensive means of access, an increasing number of people will have the ability to improve their lives at the swipe of a finger. On your last roll of toilet paper? Have 24 double rolls shipped to your house by tomorrow. This example might be crude, but the infrastructure necessary to support its reality is profound.
Ecommerce has forever changed the way the free market operates. According to a study by eMarketer.com, by the year 2020, almost 15% of all global sales will be fulfilled on the internet. This is roughly the time online retailers like Amazon and Alibaba will be able to introduce cryptocurrencies to their business model.
These massive companies have likely had their eyes on the blockchain for years, but integrating cryptocurrencies as a payment option will take time due to corporate regulations and market volatility.
There is a growing number of people who would much rather do business with cryptocurrency instead of fiat. Being a smaller company means Ecryptostore has corporate agility, and the adoption gap Amazon and eBay are subject to means the market is open to options—and might even be seeking them out. After all, true crypto believers are always on the lookout for a good use case.
The Platform
Sellers
A key component of Ecryptostore is powered by Free Market Tokens. FMT is a utility token that aims to solve the ‘volatility riddle’ inherent in the crypto space. Aside from the wild price swings constantly occurring in the market, merchants are generally exposed to volatility when funds are held in a smart contract. A contract in ecommerce can take weeks to fill due to all the terms required before and after the product has been delivered.
Free Market Token is being built on the NEM mosaic, which allows FMT to be used as collateral during a transaction. Merchants can instantly receive funds by staking their FMT directly in the on-platform wallet, reducing their exposure to price fluctuations considerably.
Sellers are able to gradually reduce the amount of collateralized FMT through a verification process combined with an increasing amount of positive reviews on their account. Eventually sellers can receive funds instantly without any escrow required.
What makes this solution to the ‘volatility riddle’ powerful is that merchants have incentive to hold FMT aside from its use as collateral. By using FMT, merchants are able to cut their transaction fees in half and avoid monthly subscription fees.
This would be like Amazon heavily reducing their fees if sellers use “Amazoin” to facilitate their sales. It’s an extremely attractive offer for businesses looking to reduce overhead.
Another interesting benefit Free Market Tokens will provide merchants is something called “Audience Incentivized Gift Marketing”. Sellers benefit from the program simply because it’s cost effective. The merchant is only billed when the advertisement is opened by a customer, and campaigns can be dialed in so their target market receives relevant ads.
Buyers
Right now there is a growing group of cryptocurrency investors whose ears would perk up after hearing, “It’s like Amazon but with crypto.” The whole point of investing in blockchain while it struggles with growing pains is the belief that one day we’ll see mass adoption.
Part of what’s necessary for that to happen is everyday use as currency. There is a growing population that already buy their toothpaste with Bitcoin, sell company shares with Bitcoin, and get paid in Bitcoin.
Ecryptostore is doing its part to close the gap by making their platform easy and safe for anyone to use. Buyers will be able to make payments directly from their on-platform wallet. The multi-currency wallet is currently underway and is set for release by the end of 2018. Buyers will also be able to communicate with sellers through an encrypted messaging system.
As stated above, sellers are able to send targeted ads with FMT “gift bags” attached. This means buyers can instantly earn FMT for opening these direct marketing messages, which can be saved and used for future purchases.
User Interface
Without an intuitive user interface, companies are exposed to unnecessary competition. Ecryptostore is currently up and running with an early version of what the website will become. The FMT team is working hard to build a product that incorporates all the elements stated in their whitepaper.
There is no capital required for buyers and merchants to create an account. After the user’s account has been verified, they’ll have the option to quickly sign in using a Google or Facebook account.
Buyers will be able to search through a large variety of items quickly by using the website’s categorical menu. As users navigate the website, their interests will be identified by the system so relevant items can be displayed in their dashboard.
When a buyer finds an item they like but aren’t ready to buy, they’re able to create lists by ‘Liking’ an item. After purchasing with their chosen cryptocurrency, shipping information will be provided so orders can be tracked until successfully delivered.
Any legitimate online marketplace needs to have an effective peer review system that allows buyers to quickly identify trusted merchants within the marketplace. Merchants who accumulate positive reviews are naturally awarded more sales.
There’s a host of applications that sellers will be able to use to conduct marketing campaigns, track sales performance and inventory, and check their account status. There’s even a ‘quick add’ function available on the upcoming mobile app that allows sellers to add products to their store by smartphone alone.
Final Thoughts
Companies like Amazon and eBay took the retail business model and put it online. Ecryptostore is taking the ecommerce business model and putting it on the blockchain.
They’re currently targeting 1% of the total online retail marketplace, which equates to $1.75 billion in annual revenue. While it’s no easy task, the FMT team has a proven track record of success and an extremely detailed roadmap. Once the model proves its ability to attract and support users, the team will begin global expansion.
You can learn more by visiting the Ecryptostore website or participate in the token sale by visiting the ICO page. Stay in the FMT loop by following them on Telegram and Twitter.
