E-commerce has already become an integral part of our lives. Driven by tech innovations, an increasingly mobile world, and additionally fueled by the COVID-19 pandemic, the majority of retailers have shifted toward online sales. But once pandemic restrictions were eased, it became clear consumers were enjoying the convenience of e-commerce and wanted to continue shopping online.
However, with all online retail advantages, this shift also revealed its limitations. The main of them are inability to see, touch, or try products in real life before making a purchase. These drawbacks and evolving consumers' expectations for engaging, interactive, and immersive ways to explore products before making a purchase forced retailers to look for a solution to address these issues. Augmented Reality (AR) came to rescue. AR helps bridge the gap between in-store and online shopping by allowing customers to visualize products in their own space, try on virtual clothing, or see how furniture fits in their home, making online shopping more engaging and personalized.
In this blog post, we'll explore the benefits of incorporating AR tech for both consumers and businesses, the specific applications it finds in the industry, and what companies are already successfully utilizing it in their online retail business.
What is Augmented Reality?
Augmented Reality is similar to Virtual Reality (VR), but they are not the same. While Virtual Reality immerses users in a completely digital environment, Augmented Reality overlays digital content and information onto users' real-life surroundings so users can have new digital interactions with it. In this way, AR helps "enhance" their factual physical environment through visuals, sounds, text, and graphics that augment the user's experience of the real world. Users can interact with AR through smartphones, tablets, headsets, and, increasingly, AR glasses.
AR uses AI and ML to function. When a user points a device camera at an object, AR technology analyzes the video stream using depth-tracking and computer vision. It then recognizes the object and overlays digital elements onto it. The AR display adjusts dynamically as the user moves their device, creating an immersive and interactive experience. For instance, a user can preview furniture in their living room or try on clothing and receive a realistic sense of how the item fits into their space or their construction before making a purchase. Using AR for such capabilities has turned a once abstract online selection into an immersive shopping experience that can rival the experience of visiting retail stores in person. Customers can now interact with products like they would with the real ones, viewing them from every angle, zooming in on details, and customizing features to suit their preferences. This capability not only improves the shopping experience but also solves common problems for online shoppers, such as uncertainty about the size, fit, or style of an item.
What Applications Does AR Find in E-Commerce?
Virtual Try-Ons
Among the most significant benefits AR offers is the ability to virtually try clothing items,
makeup, or hairstyles. In this way, customers can better understand what they are going to purchase, reducing possible returns because of receiving not what they are expecting. Virtual try-ons also benefit retailers because they eliminate the need for traditional stores to stock large physical inventories in multiple locations. Customers can use AR apps to try on products in colors or styles that are not available at the location they visit.
For instance, Glasses.com offers a virtual try-on feature enabling shoppers to see how different frames will look on their faces before purchasing. Customers can use their device's camera to capture a photo or use an existing one. This feature helps users to determine which frames suit their face shape and style preferences. It enhances the online shopping experience for eyewear by providing a more interactive and personalized way to shop for glasses. In the above example, I've used the photo of a stunning Sandra Bullock trying on one of RayBan models. I hope she doesn't mind as they look great on her.
Or, for example, L'Oréal's Makeup Genius allows customers to try makeup virtually, helping them find the perfect shades and products and reduce the uncertainty associated with online makeup purchases. I tried some of their products using a photo of Jenifer Lopez. She looks amazing even without makeup, but with Makeup Genius, I could experiment with different looks and shades, proving just how fun and useful virtual try-ons can be. Similarly, the app from cosmetics giant Sephora uses advanced facial recognition technology to accurately apply makeup to the user's face in a digital mirror. This feature helps shoppers choose the product and offers a fun, interactive way to experiment with new looks.
Wanna Kicks by Wannaby allows users to try on various sneakers virtually, including models from Nike, Puma, and other popular brands. It has gained popularity among sneakerheads for previewing new releases. I tried on a few models from the app; they looked nice, and the whole experience was really amazing; these sneakers looked absolutely real. Similarly, Nike's AR shoes, available through apps like Snapchat, enable users to customize and virtually try on sneakers before purchasing. These apps cause customers to spend more time exploring different options, which means they are more likely to complete a purchase.
Virtual in-home visualization
Furniture and home decor retailers are increasingly actively using AR to solve one of the most common consumer concerns, namely how the paint colors, home decor, or furniture fits in their home with regards to style, design, and physical dimensions and how the whole space with this new piece of furniture will look. This feature allows shoppers to get an accurate sense of scale and design, boosts confidence in their choice, minimizes returns, and sparks new interior design ideas.
Houzz offers a "View in My Room 3D mode" where users can use AR to place and move over 500,000 furniture and decor items in their space. The app also supports visual search and social sharing, enhancing the user experience. I always thought I needed a piece of furniture in this corner of one of my rooms. Although not all the furniture in the app that I checked had that 3D mode feature available, among those that I selected, that bookcase fits nicely. Similarly, Arhaus's AR-powered room visualization tool, Wayfair's and Amazon's "View in Room" feature allows customers to place virtual furniture in their homes to see how it fits and looks in their space.
Dulux Visualizer App allows users to visualize Dulux paint colors in their home before painting, using AR or photo uploads. So I experimented with the colors for my future bedroom, and now I am thinking whether I should opt for orange and blue or leave it light grey according to the designer's initial idea. I have to admit that while the experience with the app seemed really nice and it was easy to use, for some of my rooms in the designer's project, it colored the ceiling or some other pieces of furniture along with the walls I wanted to paint. But with the real space using a device camera, it worked more correctly. Similarly, for paint, apps like Sherwin-Williams ColorSnap Visualizer, Asian Paints Colour App, and many others provide effective paint color visualization tools.
Social Media Filters
Social media have already become one of the major sales channels in online retail, especially for younger demographics, who are usually very active on social media. Those users are used to different AR filters that overlay digital effects, such as emojis, digital symbols, and even virtual makeup, onto real-world images captured through smartphone cameras. On social media platforms like Instagram, Facebook, TikTok, and especially Snapchat, these filters have evolved from entertainment tools to marketing instruments for e-commerce, particularly suitable for the cosmetics industry. Several companies have started to implement AR visualization to make the optimum use of the filters. Some beauty brands have already released AR filters on Snapchat, allowing users to swipe through them and take photos with virtual makeup. Users can then share these photos with friends on Snapchat and other social media platforms.
For instance, Allure partnered with Snapchat to create filters for trying on makeup from brands like Lancôme, making it easy to share looks with friends. I downloaded the Snapchat app, searched for Allure filters using the loop, and tried a couple of lipstick colors and blushers using their filters. Similarly, MAC Cosmetics launched shoppable AR lenses on Snapchat, which allowed users to try 20 eye and lip products and buy directly. Too Faced also uses Snapchat's Scan feature for makeup tutorials, making virtual try-ons more engaging.
Interactive Product Demos
Augmented Reality offers shoppers interactive product demonstrations. Tech companies increasingly use interactive product demos so customers can view 3D models of tech products in their real environment. In this way, they can understand the size, design, and functionality of tech gadgets much better. The automotive industry is also exploring AR to improve the shopping experience. Some companies now offer AR tools that let potential buyers remotely explore car features, interior designs, and color options. In retail environments, AR kiosks and interactive displays have become popular for engaging shoppers and offering personalized recommendations on the spot. For example, some dealerships, like those under the AutoNation group, have implemented AR kiosks where customers can interact with virtual cars, customize options, and get recommendations based on their preferences. These innovations improve engagement and enable consumers to interact with products in ways that were once impossible.
For instance, Samsung's AR demos enable customers to view 3D models of tech products in their real environment. They help customers understand the size, design, and functionality of tech gadgets. Similarly, Apple's AR Quick Look lets shoppers see tech products in AR.
Toyota has a Toyota AR app for certain models, allowing customers to visualize cars in their real environment. Users need to select a model, activate AR, and place the virtual car in their space to explore features and colors. I experimented with the app, but I can't say the experience was absolutely smooth as the model dimensions sometimes got unexpected in size. Still, it was quite interesting to spin the AR model of the car. Similarly, Tesla, Hyundai, Kia, and Volkswagen also provide AR experiences through their apps or websites.
What are the Benefits of Using AR in e-commerce:
From the examples mentioned above, it becomes obvious that Augmented Reality offers numerous benefits for shoppers and e-commerce businesses. Here are the main of them:
Improved Product Visualization
AR enables improved product visualization. Unlike traditional 2D images, it allows shoppers to examine items from every angle, zoom in on intricate details, and interact with products in real time. For example, customers can virtually try on clothing and accessories, visualize furniture in their living spaces, and customize products before purchasing. This enhanced visualization reduces the need for assumptions, where AR allows customers to inspect products closely and receive deeper and more complete information about products right from their own homes, addressing the sensory gap in online shopping.
Reduced Uncertainty and Increased Customer Confidence
AR reduces uncertainty by providing a realistic preview of products, thereby increasing customer confidence in completing purchases. By allowing virtual try-ons and in-home visualizations, AR ensures that the product selected matches customer expectations, minimizing guesswork and leading to increased satisfaction and decreased returns.
Increased Sales and Reduced Returns
AR significantly boosts sales by enhancing conversion rates. By providing accurate previews, AR reduces common return reasons such as sizing, color, and style-related issues. For instance, virtual try-ons for clothing and accessories and furniture visualization in living spaces ensure better fit and style matches. According to ResearchGate, retailers utilizing AR/VR reported a 25% reduction in product returns and a 20% increase in conversion rates.
Personalized Shopping Experiences
AR allows e-commerce businesses to gather insights from users' interactions with AR experiences. These insights then help to adapt product recommendations so shoppers receive a more personalized shopping experience. This level of personalization is not typically available in traditional retail.
Standing Out from Competitors
AR positions businesses as industry leaders by offering unique, immersive, personalized shopping experiences, helping them stand out from competitors. With AR features and filters, businesses can create buzz, reach new potential customers, and improve brand perception. AR experiences often encourage social sharing, expanding brand visibility.
What is the Future of AR in E-commerce?
The future of Augmented Reality in e-commerce will depend on several enabling technological advancements. The introduction of 5G networks is expected to significantly improve the AR experience by providing faster data speeds and reducing latency. We can also expect Augmented Reality to increasingly be combined with Artificial Intelligence to provide more personalized experiences, such as smart virtual try-ons where shoppers are offered products based on their previous purchases and preferences. While smartphones currently dominate the use of Augmented Reality, future wearables such as smart glasses will make the AR experience more seamless and integrated into everyday life. We can also expect to see increased adoption of web-based AR solutions that will eliminate the need for specialized apps. It will make the technology more accessible to shoppers and easier for businesses to implement. These developments will help make Augmented Reality a common part of online shopping.
Bottom Line
AR is no longer just a novelty but a game-changer for e-commerce, driving customer engagement, increasing sales, and building brand loyalty. While AR features have not yet become a mainstream in the industry, as online shopping evolves and consumers become more demanding, we expect more brands to embrace AR, making it a standard shopping expectation, just like high-quality images and detailed descriptions are today. Despite the initial investment in new technology, the benefits to businesses are undeniable: reduced returns, higher conversion rates, increased customer satisfaction, and stronger brand loyalty. For e-commerce businesses, the choice is clear: they need to embrace AR capabilities, otherwise they risk falling behind more innovative competitors.
