Ever wished you could try on clothes without getting out of bed or see how that new sofa would look like in your living room before pressing the “buy” button? Well, guess what it is here made possible with AR technology and it’s cooler now than ever before.
The Snapchat report, based on a survey of over 1,000 users across four major markets (US, UK, Saudi Arabia, and France), highlights the increasing demand for interactive online shopping experiences. This demand transcends age groups, with respondents ranging from 13 to 49 years old expressing a desire for AR-powered features.
Let’s understand how AR is changing up the e-commerce game and making shopping an unforgettable experience.
What is Augmented Reality?
Augmented reality(AR) refers to a technology that overlays digital information such as images, videos or 3D models onto a real-world environment through the use of devices such as smartphones, tablets or AR glasses. This fusion between virtual elements and physical world enables users to interact with both at the same time, thereby enhancing their perception and experience of reality. From gaming and entertainment to educational training, navigation etc., different AR applications offer various opportunities for immersive and interactive experiences.
With the help of augmented reality (AR) technology, customers can virtually “try on” products or picture them in their own environments. This creative strategy encourages more informed purchasing decisions and increases consumer engagement. Major players in a wide range of industries, from well-known fashion labels to furniture behemoths like Ikea, are utilizing augmented reality (AR) to give their customers immersive experiences.
Benefits of AR in E-commerce
The integration of AR in e-commerce unlocks a multitude of advantages for both businesses and consumers:
- Virtual Try-On: Consider trying on clothes or accessories without entering a physical store. Customers can use AR applications to see how a garment will look on their body by using their smartphone or computer camera. This removes size and fit concerns, allowing for a more confident purchase.
- Spatial Visualization: AR empowers customers to visualize furniture and home decor items within their actual living spaces. This functionality helps assess scale, style compatibility, and overall aesthetic before making a purchase. It can open up a world of interactive features, such as animated product manuals or augmented reality scavenger hunts that reveal hidden gems in real-world retail locations.
- Interactive Product Exploration: AR has the power to completely change how products are presented by enabling users to examine products from every angle, discover their features and functionalities, and even virtually manipulate them. This promotes a better comprehension of the product and its possible applications.
- Personalized Shopping Experiences: AR makes online shopping more unique. Consumers can alter colors or patterns, add their own original designs, and tailor products to their exact specifications. A sense of satisfaction and ownership is fostered by this degree of personalization.
- Skyrocket Engagement: By superimposing interactive experiences on the real world, brands are capturing shoppers’ attention like never before. According to studies, brands that adopt augmented reality see a 20% increase in engagement. That is more than just a number; it translates to happier, better-informed customers who are more likely to buy.
- Creating Buzz: Trending online is a clear marketing objective in the social media-dominated world of today. And with AR, you can get there. Brands can generate excitement and expand their reach by developing shareable augmented reality experiences, such as interactive object displays or virtual tryout filters. In fact, 61% of consumers say they tend to buy from companies that offer AR experiences.
Say Goodbye to Buyer’s Remorse: Reducing Returns and Increasing Satisfaction
The excitement of making a new purchase can quickly give way to buyer’s regret for a lot of internet shoppers. Unexpected features on gadgets, furniture that takes up too much room in a living area, or ill-fitting clothing can all result in returns, which is annoying for both buyers and sellers. But those times are gone with AR.
Before making a purchase, customers can use augmented reality (AR) to see how clothing will fit them, picture furniture in their homes, and test out the features of technology. Both the possibility of returns and the risk of disappointment are greatly decreased by this improved product visualization.
A study by Shopify, a leading e-commerce platform, found that businesses utilizing AR features experienced a 22% reduction in return rates. This translates to happier customers who receive products that meet their expectations, while retailers benefit from fewer processing fees and logistical costs associated with returns.
AR takes the guesswork out of online shopping. Virtual try-ons and product visualizations let you see exactly how things will look and fit, reducing the fear of buyer’s remorse.
AR offers advantages that go beyond just lower returns. AR increases customer confidence and satisfaction by promoting a better-informed purchasing decision simply because consumers gravitate toward interactive experiences.
The Gen Z Factor
Unlike previous generations, Generation Z grew up shopping online. They fully embrace technology and the online world, sharing their experiences on social media and expecting easy, eye-catching, and tailored shopping, whether online or in person.
Gen Z’s preference for technology and online shopping presents an opportunity for brands to use augmented reality to create engaging, interactive experiences. A remarkable 81% of Gen Z and Millennials expect augmented reality (AR) to play a pivotal role in elevating their in-store shopping experiences.
The same study emphasizes the importance of personalization for Gen Z. A significant 65% of respondents indicated that increased personalization significantly influences their purchase decisions. AR directly addresses this desire by offering features that cater to Gen Z’s unique shopping preferences.
The results of another study published in Dec 2023 revealed that Gen Z consumers’ perceptions of the utility, enjoyment, and ease of use associated with Virtual Try-Ons (VTO) technology significantly impact their online shopping experience.
The data presented in this study paints a clear picture: Gen Z craves interactive, visual, and personalized online shopping experiences. Businesses can capitalize on this by implementing features like virtual try-on, 360-degree product views and personalized product recommendations.
The Future is Augmented: Embracing the Next Generation of Shopping
According to Statista, the number of consumers worldwide who use AR frequently is expected to grow to 4.3 billion by 2025, up from 1.5 billion in 2021.
This means that the future of shopping is here, and it’s augmented. It’s about creating experiences, building relationships, and making every interaction count. Whether you’re a major name retailer or a small boutique, augmented reality in ecommerce can transform your business.
As AR technology matures and becomes more accessible, we can look forward to a future where shopping is not just a transaction, but an immersive, interactive experience. This convergence of technology and consumer behavior holds exciting possibilities for the future of online shopping, particularly for the digitally native Gen Z demographic.
AR Integration in E-commerce is Slow: A Hurdle to Overcome
Despite its advantages, widespread adoption of AR integrations remains slow. Here’s a closer look at the key reasons behind this:
- Early Stage Technology: AR technology is still in its early stages of development. Businesses must continuously modify and adapt to the constantly changing standards for developing and delivering augmented reality experiences. Integration can be a difficult and unpredictable process due to the absence of well-established best practices.
- Custom Development Hurdle: It takes a lot of time and resources to create unique augmented reality experiences from start. It calls for specific technical know-how and abilities that might not be easily found in an e-commerce company. For companies, particularly smaller ones who might lack the resources or know-how to invest in custom AR development, this can be a major obstacle.
While these factors contribute to a slower than ideal adoption rate, solutions like PlugXR are emerging to bridge the gap. These no-code platforms empower businesses to create and integrate powerful AR experiences without the need for extensive coding expertise. This streamlines the development process, making AR integration accessible to a wider range of e-commerce businesses.
For AR to truly flourish in e-commerce, businesses need to invest in educating their customers.
A key hurdle to widespread adoption lies in consumer awareness and education. Many consumers might not be familiar with AR or understand how it can enhance their online shopping experience. This creates a gap between the potential of AR and its actual impact hence businesses need to invest in educating their customers and showcasing the value proposition of AR features.
PlugXR-like No-code platforms often provide valuable data and insights on how customers are interacting with AR features. This allows businesses to tailor their education efforts based on actual user behavior.
They can also help businesses scale their AR efforts efficiently by allowing them to create AR experiences for a wider range of products without significant additional resources which in turn provides more options for the customers to try. However, addressing consumer privacy concerns and ensuring AR accessibility across various devices will remain crucial for long-term success.
Conclusion:
While e-commerce development has been explosive, a failure to properly inspect items beforehand has remained a huge trouble spot. Augmented reality is obliterating that barrier by fusing online shopping with a distinctive, real-world visual experience.
Customers can now bypass uncertainty and make smarter purchase decisions from the solace of their homes. For retailers, embracing AR provides a serious competitive edge through elevated item interaction capabilities.
The e-commerce game is evolving, and AR’s revolutionary tech is dealing the triumphant hand.
PlugXR, a user-friendly no-code platform, empowers businesses of all sizes to tap into this revolution and create immersive 3D, AR, and spatial computing solutions.
