Affiliate marketing is a lucrative way for web users to leverage their network to generate additional income through third-party sales. Until recently, these partnerships were hard to establish in a way that proved mutually beneficial for both parties. Now, there is an alternative way for sellers to increase e-commerce sales and for independent marketing intermediaries to earn a commission. Splyt takes the guesswork out of affiliate marketing, creating a way for sellers to gain access to affiliate marketers without taking on additional monetary risk.
It can be challenging to predict how well an affiliate marketing campaign will do and whether it will generate the necessary sales threshold to make the campaign profitable. With Splyt, this downside risk is taken out of the equation. In Splyt's reconceptualization of affiliate marketing, sellers do not have to worry about spending excessively on unsuccessful campaigns. In a sales style more geared around mutual collaboration, affiliate partners only get paid for the value they generate, and sellers or brands can determine a fair commission rate to incentivize product or service promotion. This trims the fat from the old system, implementing multiple ways to improve the e-commerce product lifecycle.
The e-commerce market is continuing to grow year over year, as more users opt to shop online. In the year 2000, only about 20 percent of American consumers shopped online, generating $25 billion in revenue, or 0.8 percent of the entire retail market. By 2016, 79 percent of Americans confirmed that they shop online, catapulting yearly revenues to $453 billion, representing about 9 percent of total retail commerce. Studies show that roughly 15% of Americans purchase something online at least once per week, and with a yearlong global pandemic forcing brick-and-mortar stores to shut down, that number has further increased.
All-in-all, it's evident that the e-commerce market is growing at a rapid rate, with the industry's global revenue surpassing $9 trillion in 2019. As we continue to move to a more digital world, Splyt is introducing a way for all to earn a piece of the e-commerce pie through distributed ledger technology and NFTs.
The underlying functions of Splyt's affiliate marketing platform are not so different from legacy systems, but there is a crucial twist. Splyt uses non-fungible tokens (NFTs) as a tokenized alternative to an online store's SKUs, allowing for effortless purchasing and promotion of products without the seller having to take on additional marketing expense. Through Splyt's shoppable NFT catalog and NFT bounty marketplace, sellers, affiliate markets, and buyers can all collaborate and benefit via a single platform.
In the shoppable catalog, everyday purchasers can browse the products or services they are interested in buying. This marketplace allows for the purchase and sale of almost any item conceivable, creating a seamless network where buyers can easily purchase their everyday or luxury items. Once a buyer completes their purchase, they automatically receive the NFT representing the individual product they bought as a receipt and proof of authenticity of their purchase. The vendor will then ship out and deliver the product, completing the transaction.
The shopping catalog is relatively standard, but the NFT bounty marketplace is the real industry gamechanger. Through the bounty marketplace, retailers and brands can post the products and services they offer, as well as the commission percentages they pay to an affiliate marketer who makes a sale. These will all be the same items available to purchase in the shoppable catalog, allowing affiliate marketers to directly promote products they think will sell within their network. Splyt enables affiliate partners to imbed the item product API into their own e-commerce store or social media channel, making the promotional process easy and effective.
The idea Splyt is approaching is well beyond the conceptual phase; Splyt has already partnered with Maison Du, an inventory aggregator for luxury e-commerce products with an established community of over 2,000 brands and e-commerce stores. This will allow buyers and sellers to test the power of distributed and decentralized affiliate marketing, ushering in an era of empowerment for self-sufficient marketers and the opportunity for all types of brands to increase their sales revenue.