E-commerce is constantly having changes and it is understandable that corporations are always on the lookout for ways to advance the convenience of shopping for consumers. Thus, one of the most significant advancements that is changing the shopping experience within the e-commerce world is Augmented Reality (AR). The augmented reality (AR) places textual and visual data on the user’s immediate environment, which enhances the chances of online purchases. It enables the customers to see products in their context and perform various actions on items they may not otherwise be able to do and thereby, assist them in making a more educated buying decision. One way in which Augmented Reality (AR) brings improvement to the overall shopping experience is that with the help of Augmented Reality (AR) the customers can try on the clothes, accessories or even makeup without actually owning them. Customers can picture products in three dimensions, which allows them to move objects around and see items from different angles. Augmented Reality (AR) application in room planning enables customers get real life feel of the home decors and furniture products before purchasing through the application. In this blog post, we aim to discuss how augmented reality changes the way people shop online, with the focus on advantages, applications, and opportunities in the future.
Understanding Augmented Reality (AR) in E-commerce
Today the technological advancement is also touching the lives of online shoppers through the implementation of Augmented Reality (AR) which integrates digital and actual objects in the purchasing process. This is important in e-commerce direct marketing since it enables the customers to imagine the products that is being offered in a better way while making their shopping experience even better. Additionally, clothing and accessories, makeup and cosmetics, interior design and arrangement – all of these can be shown with the help of Augmented Reality, which allows continuing the tradition of virtual try-ons and 3D models. Thus, these features bring together the convenience and accessibility of e-commerce along with the touch and feel of the actual store.
There is a growing interest in Augmented Reality (AR) among consumers all over the world, particularly in Poland and the U.S where a significant percentage of consumers would like to use Augmented Reality (AR) for shopping purpose. Google Consumer Augmented Reality (AR) Survey conducted revealed that 66% of the consumers are willing to use Augmented Reality (AR) in shopping assistance. The Augmented Reality (AR) actually has a very promising future within the sphere of e-commerce having the average annual growth rate of 47%. Thus, it is evident that Augmented Reality (AR) has an influence on purchasing behavior where 57% of users are willing to purchase from brands that have implemented Augmented Reality (AR). At present, more than one third of consumers are using Augmented Reality (AR) when making purchases and this percentage is likely to rise in the future, underlining the relevance of AR in the context of retail.
Advantages of Using Augmented Reality in E-Commerce
There is no doubt that Augmented Reality (AR) is revolutionizing the e-commerce industry in a very substantial way by bringing a lot of advantages that benefit both shoppers and businesses. Here we will explore briefly the benefits of Augmented Reality in E-Commerce:
A. Enhancing Customer Engagement with Augmented Reality in E-commerce
With the help of Augmented Reality, e-commerce companies can generate enhanced engagement and conversions since the incorporation of an immersive in-store experience into an online web platform is the next step in the evolution of e-commerce markets.
- Visualizing Products in Real-World Scenes
Product visualization is one of the massive advantages that AR provides customers while buying something through e-commerce. This feature is more useful for the products that do not fit into categories such as furniture, home decorations, or clothing. For example, IKEA has AR application known as IKEA Place where the users can place actual scale 3D images of furniture into their homes via the phone’s camera. This capability makes customers visualize how that piece of furniture will look and where it will fit in their home, thereby minimizing the level of uncertainty and thus increasing the chance of buying that piece of furniture more.
- Interactive Product Demonstrations
AR has the potential to provide inclusive experiences through which customers can interact with products to greater depth and more efficiently. Most beauty brands, including Sephora, employed the use of augmented reality to enable customers try and compare makeup products on the appearance of their faces without having to apply them. It not only enhances the practicality of shopping but also enhances customer satisfaction and sales since customers would get better results in their search within a shorter period.
B. Reducing Return Rate with Augmented Reality in Ecommerce
Augmented Reality (AR) is revolutionizing e-commerce by addressing one of the industry’s significant challenges that is high return rates. AR technology helps in creating a better representation of products to the customers, which helps in reducing the gap between the perceived and real products. Additional services, such as virtual dressing rooms, or product information overlays are another way in which the use of AR can reduce return rates due to increased customer satisfaction and confidence in the decisions they make.
- Selection of Accurate Product
Another common reason for returning products in e-commerce businesses is lack of proper sizing and misfit. AR technology makes it possible to overcome this challenge since users receive accurate information about the size and fit of a product. Fitting rooms are sections of the garments that allow customers to ‘wear’ clothes on screen in order to choose an appropriate size before buying them. This in turn minimizes returns from the retail shops attributed to size concerns hence cutting costs and offering convenience to clients.
- Detailed Product Information
AR also uses overlaid information which gives more elaborate information concerning a certain product. This aspect benefits the customers by providing broader information on features and specifications of products thus ensuring that customers make better decisions on the products to buy and thus minimizes on cases of returns. With AR, customers can watch instructional videos, product demonstrations, and other information about the product, which provides a better understanding of the product and confidence level.
C. Boosting Conversion Rates with Augmented Reality in E-commerce
In particular, the application of the Augmented Reality (AR) technology is gaining momentum due to its effectiveness in increasing conversion rates for e-commerce platforms. Thus, by compensating for the shortcomings of new online retailing, AR makes the purchasing process smoother and more engaging for a customer.
- Enhanced Product Visualization
AR enables customers to view products in a more detailed manner as well as to have an opportunity to interact with the product model. This kind of interaction is much more persuasive than simple two-dimensional depictions and textual explanations. For instance, AR can represent how a painting would appear painted on the wall or how a certain type of shoe looks when worn, thus becoming more convenient and time-efficient to make a decision. Real time visualization means that the customers are in a position to easily complete the purchase as they will be confident enough to do so.
- Personalized Shopping Experiences
AR brings unique individualistic experiences to the consumers by making suggestions based on consumers’ likes, past actions and habits. This kind of approach makes customers feel valued and understood hence making them more likely to buy the vanity. In addition to this, AR can recommend similar products to customers, after they have viewed or even tried on items online, thus improving the likelihood of making a purchase. Furthermore, it opens new opportunities for customer engagement and satisfaction while increasing the conversion rate through the use of AR.
Case Studies and Success Stories
The effectiveness of Augmented Reality (AR) in e-commerce can be most easily explained through examples of its successful application. These case studies prove how beneficial AR can be in modern e-commerce to offer solutions to existing issues, such as placing products in a real setting and lowering the return rates. Here are two standout cases where AR has significantly enhanced customer experience and driven sales growth:
IKEA Place
IKEAs augmented reality application, referred to as IKEA Place makes shopping for furniture all the more unique. Today’s ‘customers can use their smartphones to see how IKEA furniture can look and where it fits in their homes. They just observe a room with their phone and get the actual-size 3D replicas of furniture in their environment. This has significantly minimized the risk involved in the purchase of furniture from online store. Through visualization of its products, IKEA has seen improvement in customer satisfaction levels and high sales figures.
Sephora Virtual Artist
There is Sephora Virtual Artist mobile application, which also uses Augmented Reality to reinvent the beauty shopping experience. With the use of this app, it becomes easy for customers to choose lipstick, eyeshadow, or foundation by trying them out virtually. In this way, customers are provided with opportunities to choose the shades and products that will suit them, and avoid putting on the products on their faces. This feature has not only improved the shopping experience but has also cut down the rate at which items are returned since the customers are well guided as to the right products to buy. Sephora used the Virtual Artist app that became one of the main drivers of its online sales, proving that AR can significantly influence the sphere of beauty.
Challenges and Future Directions of Augmented Reality in E-commerce
As we can see Augmented Reality (AR) in e-commerce has significant opportunities and advantages but also includes several issues that should be considered and solved in order to successfully implement this technology. Thus, it is important to understand these challenges and look at the trends to predict the future for effective use of AR for retailers.
- Technological Limitations
Nonetheless, it is important to note that sophisticated AR applications can add a lot of value to the shopping experience, although achieving high levels of AR quality is contingent on platform, hardware, and software. These technologies take time and money to build and sustain in the long run. Further, not all the consumers can afford or have devices that can enable them to use complex applications such as AR, thus constraining the utility of AR. Regardless of such facts, the cost related to the development of AR applications is likely to decrease with time while the number of compatible devices is likely to rise in future making AR accessible to a larger audience. These are some of the limitations that retailers have to deal with; it is, therefore, important for the retailers to ensure that they keep abreast with the latest technology.
- Integration with E-commerce Platforms
Another major issue is sustaining smooth integration of AR into existing e-commerce sites. For a successful implementation of the features, the retailers must be certain that the features are not only meaningful but are also satisfying to the users in terms of UX. This means extensive communication with AR developers and constant checking to identify any problems. A second challenge is achieving interoperability across different devices and operating systems. It is not just a matter of technology, but rather a question for strategy to determine where, when, and how AR should be integrated in a way that it can complement the shopping experience but not interrupt it. One should bear in mind that constant improvements and users’ feedback are vital to enhance and develop different AR capabilities.
Conclusion
Modern technology such as the AR is currently transforming the e-commerce sector as it allows for customer interaction and engagements which is missing in traditional e-commerce. AR gives opportunities in visualizing products in real-scenarios, virtual fitting while assisting in minimizing returns, and maximizing conversions. Due to the ongoing advancement in technology, the use of AR in e-commerce is expected to expand still further as there are far more exciting techniques to come in online shopping. At e:command, we focus on the implementation of AR for e-commerce sites aimed at improving shopping experience on the websites and boosting sales. Get in touch with us today to find out how e:command can assist you to deploy AR for e-commerce and remain relevant in today’s cut-throat online business arena. Try these techniques and see your e-commerce venture become successful in the global market.
