Overview
E-commerce giants like Alibaba, Amazon, Shopify, and Flipkart have all begun utilizing augmented reality (AR) in their services. In 2018, Alibaba started pioneering the integration of virtual and augmented reality experiences as part of their customer’s online shopping journey. With more interactive options available, millennials and Generation Z are increasingly seeking an e-commerce experience with AR technology. According to research, 30% of the younger generation prefer this option over the traditional “non-AR” shopping experience, compared to 14% of the older generation.
Through AR, shoppers now have a way to experience products firsthand without leaving their homes. This immersive experience enhances the customer’s shopping journey and gives businesses more opportunities to inform and connect with their customers—even after they’ve made a purchase.
AR technology can be harnessed to enhance the customer's shopping experience, which boosts sales. In the following sections, we'll see some businesses already leveraging AR to improve their customer experiences.
IKEA
IKEA was one of the first major retailers to introduce AR in online shopping. In 2017, they launched the IKEA Place app, allowing consumers to place thousands of products in their homes virtually. All it takes is for the customers to point their camera at the desired location, select an item from the IKEA catalog, and watch it appear in real time. With the ability to rotate and adjust the item to fit their space, shoppers can get an accurate view of how the product will look before they make a purchase, genuinely living up to the motto “try before you buy.” AR technology like IKEA Place keeps users engaged and gives them the confidence to buy items online.
Sephora
A fantastic example of how AR can be used to enhance an e-commerce experience is Sephora Virtual Artist. Here, users can experiment with various makeup looks, match shades to their outfits, view full-face looks, and learn how to apply makeup through virtual tutorials. Whether users are beginners or experts in the makeup world, this AR technology allows customers to virtually try on products and find the one that suits them best—all with the simple click of a button. This interactive approach not only makes shopping fun for customers but also helps them build confidence in their purchases because they have had the chance to test multiple products. The result? Increased conversions and fewer returns.
Nike
In 2019, Nike brought AR technology to the table with their introduction of Nike Fit—an app that can accurately measure a user’s foot and give them the perfect size in any Nike shoe. This tool expertly engages customers with personalized recommendations based on their measurements while providing them with a truly custom experience. As a result, Nike Fit has caused marked reductions in returns and improved performance of their shoes.
AR offers a host of advantages to businesses, from increased customer engagement rates to improved sales figures. Though it may take some time for customers to embrace this technology fully, the current COVID-19 pandemic is likely to speed up its adoption. E-commerce is poised to grow exponentially in the near future, and AR is sure to be a significant part of that growth. Companies must pay attention to the potential of AR—it could be the key to achieving success in this ever-evolving digital adoption.