Amazon is reportedly planning to launch its own NFT marketplace in April 2023, according to sources cited by Big Whale. The new platform, called Amazon Digital Marketplace, will initially be available to U.S. customers, with a global rollout planned for later. It will feature 15 NFT collections at launch, marking Amazon’s entry into the Web3 space. The launch was initially delayed twice following the collapse of FTX in November 2022.

A Potential Game-Changer for Web3 Adoption

Amazon’s venture into NFTs could have a massive impact on the broader Web3 ecosystem. With more than 310 million active customers, even a small fraction of interest could lead to exponential growth. Crypto influencer Waleswoosh highlighted the potential for rapid expansion, saying that if just 1% of Amazon’s customer base engages with the marketplace, the space could grow substantially.

Despite excitement surrounding Amazon’s NFT platform, critics point out that the marketplace reportedly will not support cryptocurrency payments. Purchases will only be possible via credit and debit cards, which has drawn skepticism from the Web3 community. Web3 developer AlexIsBuilding noted that Amazon does not plan to accept crypto wallets like Metamask anytime soon, potentially limiting appeal among blockchain enthusiasts.

NFTs Linked to Physical Goods

Amazon’s NFT marketplace will reportedly feature physical goods tied to some NFTs, according to a report from Blockworks. For example, users could purchase fashion-oriented NFTs, such as a token tied to a pair of jeans, and receive the physical item delivered to their homes. This hybrid model of digital and physical goods could provide a unique value proposition to Amazon’s marketplace.

Earlier this year, Amazon announced a partnership with Ava Labs, the developers of the Avalanche Layer 1 blockchain. This collaboration allows Amazon Web Services (AWS) to offer tools and infrastructure support for blockchain developers, positioning Amazon as a key player in blockchain services.

The NFT Market Begins to Recover

Amazon’s entry into the NFT space comes as the market shows signs of recovery after a challenging 2022. According to DappRadar, $2 billion worth of NFTs were traded in February 2023, marking a 117% increase compared to the previous month. While OpenSea facilitated $587 million in trades, it trailed behind emerging competitor Blur, which saw $1.3 billion in trades as users scrambled to earn BLUR token airdrops.

Though Amazon’s upcoming marketplace has received both excitement and skepticism, its massive customer base could prove pivotal in shaping the future of Web3 and NFTs.