Augmented Reality in Ecommerce

We are now familiar with e-commerce and its usage. In fact, it has entered our daily conversation, and we have gotten accustomed to the idea of purchasing products online. But there are still some products or items for which we need a little more contextual information. We want to see how that product looks on us, in our homes and where we live. While some categories have benefited from e-commerce, there are others that still struggle to do their best in this field.

Oftentimes, we feel, “What if I could try this dress first? I want to see how it fits on me,” or “How will this chair look with my dining table?” Is there any way I can see how this cabinet looks with my other furniture? ” Yes, we have all been there. It’s a real struggle. That’s where AR in eCommerce has come to our rescue.

Now you might be wondering,

But what exactly is Augmented Reality? How is it different from virtual reality, and how will it benefit my eCommerce business?

We are here to answer all your questions. Let’s dig in. First things first-

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What is the difference between Augmented Reality and Virtual Reality?

Augmented Reality simply augments the world where you live, whereas Virtual Reality takes you to an imaginary or artificial world that is way different from your real life.
In most cases, AR would typically require a smartphone, while VR would require you to wear headsets and controllers.

Augmented Reality in eCommerce

According to PwC’s Global Consumer Insights Survey, 47% of consumers preferred to shop in stores compared to 30% of people shopping online. This pattern has changed after the pandemic where people shopping online has increased to 45%.

With consumers increasingly relying on online channels to shop, here is how augmented reality is bringing a real change –

How eCommerce Businesses are leveraging Augmented Reality?

How eCommerce Businesses are leveraging AR

1. Preview Placement

Imagine that you are able to see how that TV looks on your living room’s wall or if you are able to decide what color your kid’s room walls should be by actually trying the color or the cartoon sticker just with the help of your smartphone? Sounds interesting, right? It surprises us how fast things are changing and the way they are becoming more and more user-friendly. AR is one of the innovations that is entirely going to change the way we experience eCommerce now.

Preview placement gives customers a real-time glimpse of what a product will look like when placed in their own environment. For example, the IKEA Place app uses AR to let furniture shoppers view furniture in their homes (as in the figure). AR isn’t just a boon for furniture retailers like IKEA.

Flipkart has also introduced an Augmented reality feature to provide its shoppers a 360-degree view of products. Here is an example of it:

Flipkart's example of AR feature — *Source: BusinessToday/Flipkart*

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2. Virtual Try-On solutions

What if you could actually try on apparel before buying it? Isn’t this what everyone wants? But eCommerce comes with its own limitations. Not being able to touch, feel, and try a product is one of them. But like we said, AR has come to our rescue, and now clothing, makeup items, and even eyeglasses can be tried on first before purchasing them. AR helps online shoppers understand what they’re buying and how the items will work for them.

Below is an example of how you can try on glasses with the LensKart app that has an advanced AR feature.

LensKart's Live AR example — *Source: Lenskart*

3. Social Media Filters

We are sure that you might have used, or at least heard of, Instagram or Snapchat. These are popular social media applications that started leveraging AR for fun in the early stages, but over the years, there have been a number of brands that have found multiple innovative ways to use AR filters to spread awareness about their products and services on these applications. Especially for newly launched products, it’s a great way to test out how they will look on their target audience. Sometimes, it also involves small games or contests via AR that prompt users to share and engage more.

Social media AR filters — *Source: Lenslist*

How Can Augmented Reality Help You Grow Your Online Business?

Improve Customer Engagement: AR is interactive. It has the capability of holding the visitors on your website or your product detail pages for long. Even if the customer ends up not buying the product, they will still develop a unique relationship with your brand and are likely to remember this experience.
Reduce Return Rates: A 2019 report from UPS surveyed 18,000 Global online shoppers, and they found that the major reason consumers returned the products was due to faulty or damaged products at 30%, followed by 27% of consumers who claimed they returned goods as they were ‘not as described.

Augmented Reality is highly immersive and provides the user with virtual try-on solutions and preview placement features. As a result, AR helps combat higher return rates as consumers will be getting more information and a better product experience before making their purchase.

Higher Conversion Rates and reaching new customers: Shopify states that the products advertised by AR/VR saw 94% more conversion rates, and Delliotte claims that customers are ready to pay 40% more if they are able to test the product through AR technology. Isn’t this is amazing? Not only that, but AR can also help you reach out to new customers by running innovative AR campaigns and by taking the first mover’s advantage. We are pretty sure that you don’t want to be left behind in making your product stand out in the market.

Wrapping Up

Some categories or products can be tough to sell on eCommerce, but a lot of them have started to benefit after the onset of Augmented Reality.

Now that you have understood the different AR solutions available and how they can benefit your eCommerce business, you can evaluate whether or not it is the right choice for your product.

If you are looking for someone to streamline and automate your eCommerce process, connect with our experts for more detailed insights at info@paxcom.net.