Our business models
We started our journey with a cashback model. Cashback has been a new trend in the eCommerce business - on top of discounts it puts a certain amount of money in customer wallets, which they can avail for further transactions. Cashback, as such, spurs the customer to make future purchases itself. The process ensures that both the company and customers gain - the customer always has extra cash for purchases and the company can assure further sales. Today many companies and eCommerce platforms are using cashback as the most efficient customer loyalty scheme.
Similar to cashback in traditional business, at ShopNEXT, people can just use our mobile app to do online shopping as normal and get dual cashback (fiat and NEXT) straight to their wallets. So they can earn their very first tokens easily without any additional cost.
At first, we thought this model worked well but later we found out some fundamental problems:
- Affiliate models cannot offer instant rewards. Users keep complaining about reconciliation time.
- It takes time to integrate affiliate systems with new merchants and merchants are different from country to country.
- The fact that we are using our main token ($NEXT) to reward makes it hard to control the dilution when we increase the number of users.
As such, while the current affiliate-based Shop-To-Earn model can still attract users, it's very hard to grow exponentially globally with billions of users.
Still adhering to our ultimate vision on Web3 onboarding, ShopNEXT will build a model that can reward users instantly, scale globally and be fully controllable by us. Combining the most out of card payment and blockchain, we will grow our project in 3 key phases:
- Phase 1 - Users acquisition: Onboarding new users by the new Shop-To-Earn model with a card-linked feature. There will also be an integrated built-in NFT gameplay that can make shopping more entertaining. From the user data, we will determine the most active markets and merchants to enter phase 2.
- Phase 2 - Merchant acquisition: Partnering with selected merchants to get more benefits and rewards for users (coming later).
- Phase 3 - Ecosystem engagement: Creating a Metaverse for merchants to build virtual stores. Merchants can engage more with users through activities in the Metaverse (coming later).