E-commerce is constantly evolving, with new trends and technologies such as cloud computing emerging every day. One of the most exciting current trends is the rise of augmented reality (AR) and virtual reality (VR). However, many are still unaware of what AR and VR technology are. In summary, VR uses technology to create an entirely new digital environment, while AR uses technology to enhance versions of the physical world to stimulate our senses.
With AR and VR technology on the rise, more businesses are adopting the technologies to create immersive shopping experiences for their customers. Some examples include how GSK and Volvo have started to utilise VR to virtually showcase their products. One interesting example would be GSK, as they have created a unique virtual reality simulator called the Exedrin Migraine Experience to let users experience what it’s like to have a migraine. While still in its early stages, there are a number of ways that VR and AR can be used to improve the online shopping experience for customers. Read on to uncover some of the most promising applications of VR/AR in e-commerce and explore how businesses can benefit from them.
What Are The Advantages of VR/AR E-commerce?
How is AR and VR transforming e-commerce? Major companies that have started incorporating these technologies saw positive impacts such as lower return rates as well as increased conversion rates. Below, the article discusses some examples of how these e-commerce businesses capitalised on the augmented and virtual reality trends to reap certain benefits.
1. Give Customers What They Expect
According to research by Hacker Noon, 61% of shoppers prefer buying from stores that offer AR experiences. AR and VR technology empower customers to visualise where and how a product can fit into their lives before they complete a transaction. For example, when IKEA launched IKEA Place, an augmented reality app that allows users to virtually design their homes – it became one of most downloaded apps with 8.5 million downloads, as reported by Rofi Labs.
The ability to visualise elevates the overall customer experience and it will be a potent selling point for e-commerce businesses when they are able to offer consumers the help they need to make an informed purchase.
2. Boost Conversion Rates
According to findings by Shopify, they assert that products marketed using AR/VR content saw a 94% increase in conversion rates compared to those that don’t. Conversion rates tend to increase as customers are more likely to make a purchase when they can preview the look and placement of an before they make a purchase.
The effects of these technologies can already be seen by how Gunners Kennels, a dog crate and kennel company, reported a 40% increase in order conversion rates after allowing customers to view how their products look in their homes with AR before making a purchase.
3. Lower The Return Rate
VR and AR in e-commerce allows your customers to fully experience your products and their selling points as described. For example, Sephora has introduced AR filters to let their customers “try on” their makeup and sunglasses before purchasing, giving them both a unique and informed outlook on their products before checking out. This makes them more confident of their purchases, and reduces the chances of product returns due to unforeseen circumstances.
4. Enhance Customer Relationships
What both AR and VR are able to do is give your consumers a unique shopping experience that is different from being in-store or when you visit run-of-the-mill e-commerce sites. They captivate customers by letting them see how your products look in various lighting, environments and combinations, all without leaving their homes. The immersive experience enables e-commerce brands to not only engage with new customers, but establish a lasting and trusted relationship with them when they purchase products that are as advertised though AR/VR technology.
Grow Your Business With AR/VR
AR and VR technologies are on the rise, with e-commerce businesses taking note. These platforms provide new opportunities for customers to interact with products in a more immersive way. We’ve seen some great examples of how AR and VR can be used to improve the e-commerce experience, and we believe that these technologies will continue to grow in popularity. If you are looking for more ways to build your e-commerce customer base, take a look at the latest trends and innovations in logistics to provide a great delivery strategy and look into how we can help you solve consumer challenges. Check out our DHL Express Discover site on how to use social selling to boost e-commerce sales too! Or open a DHL Express account with us now.
