Augmented Reality (AR) the Future of eCommerce Business

The AR feature of eCommerce sites is changing online shopping. It blends digital interaction with real-life experience. AR lets potential customers see a product in real or artificial ways. They can touch, feel, and experience it. They can even find a product in a virtual store, millions of kilometers away.

It can now transform objects you bought only in your studio and make them real. It gives a customer the fashion to see a product in his environment or on his body, which makes shopping more personal and interactive.

Many online retailers are finding that a demand for AR tech is improving user interfaces and boosting sales. AR seems to disrupt the marketing of e-commerce products to the extent that traditional brick-and-mortar retailers may lose their competitive advantage.

If you are still unsure about Augmented Reality in the eCommerce business, consider the following figures:

• 70% of consumers can be convinced about the stand-alone benefits of AR (TechJury).
• 57% of shoppers find it more interesting to buy from AR-related brands (XR Today).
• AR-powered experiences are 200% more engaging than non-AR experiences (ThreeKit).
• A global survey predicts that 45% retailers adapt AR-powered technologies at the end of 2025 (Statista).

The rise of AR technology matches the growth of mobile tech. By 2025, 100% of smartphone users and 75% of the world will use AR daily. Augmented Reality integration in eCommerce systems tends to be the solution to the problem of 94% decrease in conversion rates provided that certain conditions are met. Recent studies have also showcased that 76% of consumers are willing to use AR in daily life. On a surprising note, AR shopping has caught the attention of 92% of Generation Z shoppers, showing rather low resistance to its adoption by the upcoming generation.

Let us take it from the top. So what exactly is Augmented Reality (AR) technology and how is it used to boost your eCommerce site performance?

Augmented Reality (AR) is such a cutting-edge technology that it plays the role of a veil, truly adding layers over our own perceptions of the real world. The digital pieces are thus very real but are still integrated into the real environment of the user. This is made possible by users bringing virtual objects to their real environment, thus making it look as though the digital and physical worlds are the same.

Augmented Reality (AR) and virtual reality (VR) are two terms that are generally interchangeable. The former is often used to demonstrate the materiality and the latter to show its digital features. The two technologies, however, are designed to do different things, especially in e-commerce.

• Virtual Reality (VR) immerses users in a purely digital environment that is not real. Imagine the environment of first-person video games, in which players can roam through a completely virtual world. Using this method, people can utilize VR technology to create a fully simulated digital experience commonly used in virtual stores or gaming.
• Augmented Reality (AR) enables the inclusion of virtual features in the real world. The best example is Pokémon GO, which populates the real world with virtual Pokémon through the camera on your phone. AR improves the shopping experience. It lets customers see digital versions of clothing, accessories, or home decor they want to buy in their home.

Both technologies have their own ways to engage customers. But AR can integrate the physical and digital worlds. So, it is more compelling to online sellers. They want to improve the shopping experience for their customers.

A recent Google-conducted consumer survey revealed the growing popularity of AR technology. To be precise, as many as 66% of customers said that prompt access to Augmented Reality (AR), would be the preliminary conditions for them to gain online experience. Jennifer Liu, the Director of Product Management at Google, talks about how e-commerce will shift fundamentally with AR, saying, "The virtual stage is the closest thing people may have before the product is actually delivered to their own doorsteps."

Online retailers face one of the most significant problems through the high number of product returns. The research of Mintel informs about the fact that a large number, 49% of UK consumers, had to return the items bought online last year while the number increases to 60% in the age group of 16-34. In 2019, 27% of returns were because the products were not as described according to the UPS survey which is the second biggest reason alongside the defective or damaged goods.

One very effective solution to this problem that is embraced by many retailers is integrating augmented reality in the eCommerce business . The technology provides 3D visualizations, try-on sessions, and demonstrates chances before consumers even settle on the product to purchase. In this way, this acquisition brings about fewer product return cases because the customer gets a more in-depth knowledge of both the product's look and fit.

Another advantage of integrating Augmented reality in eCommerce is and indeed is the tool that builds a better relationship between the client and the online merchant. A recent report by Facebook-partnered AR analytics provider Vertebrae also verified that 19% of the retailers using AR in telling the visuals on their products had increased their engagements during the last quarantine with 90% of the improved conversions.

According to data from Shopify, products that have AR content experiences 94% higher conversion rates than those without. Furthermore, from Deloitte’s report we understand that 40% of the buyers are ready to buy the goods that can be tested using AR at a higher price.

Augmented Reality capabilities elevate the eCommerce industry by providing consumers with a whole new way of shopping which is attractive and personal. Unlike those still only familiar with regular online buying, AR technology is relatively fresh, leading people who used it to become early adopters and be known for their artyness. They succeed in getting more customers when the customers enjoy better and more interactive shopping. AR program becomes a beacon of differentiation in the market and helps customers make informed purchase decisions. This, in turn, helps in reducing the number of returns and increasing customer satisfaction, as a result.

AR will usher in consumers' abilities to create and visualize their own products during shopping, such as trying on a piece of jewelry or moving furniture around, thereby setting up the environment whereby consumers will feel more confident and interested to buy a product. Moreover, combined with machine learning, AR can make suggestions to the user by remembering their former choices. Thus the process will be more individual.

With the help of AR, a physical store's atmosphere can be mapped virtually. This is very handy in that it obviates the need for a traditional shop or showroom. Customers are now able to go through products from anywhere in the world in an interactive and immersive way. This, in turn, has made geographical limitations a thing of the past.

Due to only 1% of the retailers that use AR at the moment, integrating AR technology listed will promote the brand. Besides, AR is a unique tool that allows companies to communicate their brand as trend setting, innovative, and of high quality a triad of customer experience that many other companies do not possess.

Augmented Reality is thrilling to say the least and is not only a toy reveal; rather it is a robust tool that really empowers the implementation of online shopping. This technology makes the buying experience more interactive, allows for the personalization of products, and even immerses customers in other spaces that are beyond the physical and mundane reality.

Augmented Reality (AR) aspires to contribute to the transformation of e-commerce, which is the merging of digital elements with the real world, hence revolutionizing the way consumers shop. With the tremendous development of 3D AR e-commerce, both AR and Virtual Reality (VR) gain ground in the online retail territory and emerge as the creators of more interactive and engaging modes of shopping. What follows are the tendencies and predictions showing the growing influence of AR in e-commerce.

• Increased AR User Base: The number of AR users may well rise to a figure of 1.4 billion by the close of 2023, which is indicative of the instant massive dissemination of AR throughout the consumer markets. This data is bound to further grow to 1.73 billion in 2024, discussing the quick spread of augmented reality devices on a global scale.
• Market Value Predictions: AR is projected to be a business segment valued at $50 million in the year 2024, which emphasizes the technology's wide-ranging adoption in many sectors, particularly e-commerce. The industry's growth is the main showcase of AR how it influences online shopping differently.
• Improved Customer Engagement: Whether it is about AR-based or those without it, users of the former have been observed to be 2 times more attracted to them through sharing and selling – that is, to say, this elevated interaction is the result of consumers showing interest in the augmented reality technology. Besides, better user interaction is the key strategic goal for e-commerce enterprises in the modernized and crowded marketplace.

• Influence on Shopping Frequency: AR's capacity to exhibit intricate and vivid product views greatly advances congruity with customer's desires and to the brand. It would appear that AR may boost shopping frequency and online store visits to a great extent. For instance, research found that 71% of respondents said they were more likely to shop if AR was used. Therefore, AR may be instrumental in increasing order frequency and ultimately store websites.
• Willingness to Pay More: Less perplexity is associated with the customization of the products as a primary stimulant of the customers' interest in making the purchase. As such, the company is able to provide the customers with the option of personalizing the products the way they like them, and thus customers tend to pay a little extra for these items that suit their personal needs. The trend as mentioned above opens the path of AR e-commerce direct marketing to at least a segment of the consumers’ specific curiosity of original and unique shopping in the universe.
• Exploding AR application in shopping: According to the statistics of 2020, almost one in three individuals who use AR shopping, which is approximately 32% of the global population, mentioned that it was a shopping experience they genuinely enjoyed. The major part of the population are youths who are always eager to try anything new, while the mature population mainly focuses on the bona fide use of AR tech in their lives. Through the confluence of these factors, the usage of AR increased [enter estimation] after 9 months.

The BLAST of AR with the Metaverse will cause disruptive changes in AR shopping and the e-commerce industry. This will be a very exciting way for customers to use AR technology to try products; for example, add sneaker colors to your avatar and see how it looks on your feed. It will also be an awesome way for the augmented reality industry to try out new applications to market assorted products. This will lead to the customers’ acquisition of the purchased thing repeatedly because even a small fade can transform the entire design and produce a view that you miss the genuinely real product while battling between the AR version and the real product.

The centralization in sectors such as Fashion, Beauty, and Aspects is identified by eMarketer as areas in which AR tech has gained a lot of interest in consumers browsing the internet. Fashion brands allow for virtual try-ons, and cosmetics brands provide AR for makeup preview technologies, so consumers now have the freedom to try on clothes from the comfort of their homes. Home goods companies do not stay behind. Augmented reality lets you see the furniture in your room!

The most advanced technology companies other than Apple are investing a large amount in AR, and such AR headsets as well as glasses, for instance, are going to be visible on the market soon. These new designs will bring AR even closer to people and will be used in everyday life too, besides e-commerce. These are the trends that are going to be in the near future of the market. Very advanced technology giants whose better-than-Apple name hasn't been announced yet are investing the most money into AR-related research and developments, which shows it seems to be the most successful one eventually.

Progressing in the e-commerce era, AR is the least to be mentioned, for it will be under the hood and see an increasing number of Metaverse gaming platforms. This early AR investment not only retains customers but also works alongside retailers, which will mean that they are the groundbreaking companies and motivate the other one to use the technology.

This blog sheds light on the trending future that increases online business by adopting new technology in your business. If you want to take maximum business from the global market, you have to be aware of every big challenge and small upgrading steps in eCommece business. Elightwalk technology guides eCommece to success with cutting edge technology.

Also read: What is Langchain? Why its use for AI-language applications?

If you want to build a new eCommece store with augmented reality and implement advanced technology in your store, Elightwalk Technology is the perfect partner to help you achieve your goals. We can take your online business to the next level and help you stay ahead of the competition in the constantly changing digital world with our knowledge and creative solutions. Our eCommerce Development Service helps your business grow because we know about the newest technologies and trends in the field.