Last Updated on by LAUNCHTIP
(Originally Published November 3, 2021.)
NFTs have taken the millennial world by storm. Talks of overnight riches, crazy looking art, right-click savers who think they have beaten the system and people now paying “Gas fees”.
With all that aside, there may well be a new emerging market underlying all the hype that could be here to stay. Utilising the blockchain, you can validate the creation, sale and ownership of both digital and physical goods.
What is an NFT?
NFT stands for Non-fungible token. Whilst Wikipedia has an in-depth explanation of exactly what it is along with all the other new acronyms, for the sake of this article, we will give you a quick explanation for those who don’t know:
Simply, an NFT is a digital record that can not be altered. Upon its creation known as “minting”, the information is logged to a decentralized network like Ethereum. This then allows the others to view and verify ownership. Only the owner can transfer the record of ownership to another person. It is held in what is known as a “Wallet”.
A key point to mention here is that an NFT can represent both a digital and physical item. Many are currently using this for pieces of Art. There are people that have sold NFTs attached to a wide variety of both digital and physical items.
In eCommerce terms, it can represent a true, authentic receipt for something that also rolls the transaction/payment into one.
Can I sell NFTs on Shopify
NFTs are traditionally minted, sold and traded on marketplaces such as OpenSea, Rarible, foundation and so on. You can view a list here.
Currently, Shopify is exploring a solid path forward for merchants to sell NFTs through the platform.
A partnership has been announced between Shopify and Venly.
Venly offer NFT and Wallet products for Developers to create blockchain based products and services. The partnership announced on October 20, 2021 details the basics surrounding the partnership, who can participate and what is on the roadmap.
At launch, it is only available to Shopify Plus Merchants and requires an application process. Once approved, you can install the Venly app from the Shopify App Store and begin your NFT journey on Shopify.
If you are not a Plus merchant, there are other avenues you can explore.
Shopify’s Policy on NFTs
A Shopify support representative responded to a Merchant query on whether you can sell NFT’s on the platform. The response is as follows:
“Shopify does allow the sale of NFTs as long as they align with our Acceptable Use Policy. The only thing to note is that Shopify Payments does not support the sale of NFTs at this time.
Since Shopify only provides you with standard website hosting and payment collection, how you fulfill your NFT orders is entirely in your hands and not something we would be able to directly support. We are here to provide the platform and the access to a variety of payment gateways to accept payment for your items. Shopify does not provide the direct resources to create or host NFT files themselves.”
Sell your own NFTs using Shopify
As mentioned previously, Venly is a current solution available to Shopify Plus merchants. If you aren’t a Plus merchant, you can still sell NFTs on the platform but you will have to come up with workarounds until Venly opens up. Selling NFTs on Shopify without Venly is possible but it will be a bit of a manual scenario.
Listing an NFT
There is nothing stopping you from creating a Product listing and advertising your items in Fiat currency (e.g $, £, €..). To keep it closer to a seamless experience, you could list the NFT on your store in your chosen Cryptocurrency and display a conversion rate.
Shopify supports a number of Crypto Payment processors. These include:
- Coinbase Commerce
- BitPay
- Coinpayments.net
This would allow the customer to pay in their chosen cryptocurrency.
An important note. Before completing the transaction, you would need to collect the buyers wallet address so you can send them the NFT.
Managing a sale
Upon a sale, you would need to confirm the payment and then transfer the NFT to the buyer. As you collected the buyers address, you are free to simply make the transfer.
If you haven’t minted the item at this point, you may lose out if you are using a NFT token than is subject to fees. There are free or super cheap NFT minting options available.
Summary
Basically, selling NFTs with Shopify is very achievable once you have gotten your head around the world of NFTs, the variety of tokens available, minting/creation and how to manage wallets.
As this emerging market gains more traction, the solutions will become more widely available and simpler.
An important aspect to remember though is this market is largely unregulated still. Due to the potential anonymity of crypto currency, there is a certain level of fraud and multiple scams that have left investors and holders with large losses. As always, it is important to do your own research and consult a specialist if you aren’t sure.
