Retailers are being disrupted by innovation, which now separates those who are willing to invest in technologies that better engage their customers from those who continue to use more conventional methods.
Retailers may now concentrate on building a strong online presence rather than just improving the in-store experience because of e-commerce's quick evolution. E-commerce has proved advantageous for customers as well as profitable for businesses. Although there are many opportunities inherent in online retail and purchasing, there are also some imposing obstacles that businesses must surmount in order to sell profitably online.
The main disadvantage of internet shopping is that many of the sensory components that consumers use to decide what to buy are sometimes gone. A customer cannot touch or feel an item when shopping online, see how it operates, or determine whether it will fit in their home. Losing this presence and involvement in the purchasing process makes customers uneasy and increases the number of cart abandonments.
Additionally, internet purchasing necessarily requires some consumer guesswork, which can result in dissatisfied customers and business loss due to an increase in return rates. In reality, the National Retail Federation found that the value of goods returns in the US retail sector is close to $260 billion.
Augmented reality (AR) will have a significant impact on how customers make online purchases as the future of e-commerce continues to take form. These problems are being resolved by augmented reality thanks to product visualization. The integration of AR in e-commerce is quickly transforming how consumers shop by enabling them to see what they wish to buy before any purchase is made. AR makes it possible to see virtual objects in your actual environment.
It can be difficult to imagine how a product would look in your home or on your counter beyond a simple eyeball test, even when you are aware of its dimensions. In that regard, augmented reality is expected to transform the online purchasing experience.
What is AR?
Do you want to learn more about augmented reality? The ideal fusion of computer-generated input and physical surroundings is provided by augmented reality technology. Applications for augmented reality can take many different forms and may include audio, visuals, movies, GPS overlays, and more to engage people and improve their experiences.
These augmented reality (AR) applications react quickly to changes in the environment and interact in real-time with the outside world. Online purchasing has opened doors for more new companies, even if augmented reality has been used for decades.
The capabilities and power of AR go much beyond what it was previously capable of. AR is now being used by businesses to increase product production and prolong product life.
The world has been given fresh opportunities via augmented reality, and yesterday is merely a recent past.
What makes AR such a potent technology that everyone wants it?
5 Advantages of Augmented Reality for Online Shopping
AR e-commerce is advantageous for both the brand and the consumer. It fosters a synergy that raises brand awareness, sales, and customer satisfaction. Several of the advantages are described below:
Although experiential marketing is the most effective strategy, it has also always been the most challenging and expensive. Every sort of marketing is now becoming experience marketing thanks to augmented reality. Augmented reality is an automated technique to communicate and engage with customers, which increases the likelihood that a brand will succeed.
AR promotes profit
Digital try-on technology is one of the most significant benefits that augmented reality brings to e-commerce. It enables customers to virtually try on apparel (such as Snap, ZERO10, Clo-Z), footwear (such as Wanna Kiks, Kivisense, Vyking), accessories (such as Perfect, Hapticmedia, QReal), and cosmetics (such as ModiFace, Virtool, Visage Technologies) in a manner that is nearly identical to trying them on in the real world.
This is significant because before making a purchase, consumers must determine whether the product is a good fit for them. Prior to the outbreak in 2019, 55% of customers cited the option to try on clothing as the main reason they preferred to purchase at physical and mortar stores.
Consumer tastes have probably not altered, but COVID-19 has compelled them to shop online. As a result, many customers are now accustomed to shopping online but still prefer to try on clothing. As a result, people buy clothing from e-commerce sites and frequently return at least a portion of it after putting it on at home.
People are making more deliberate purchases as a result of the global economic downturn, and for many, it is simpler to back out of a purchase than to go through the hassle of returning it.
With AR try-on, customers can utilize the cameras on their smartphones to preview how the digital version of an item will appear on them. Since there is current technology that can track and segment the body, as well as imitate various types of clothing, the experience can be very realistic.
It aids in solidifying and enhancing decision-making. Consumers are more likely to make additional purchases when they are comfortable with their selections. As a result, sales increase while returns diminish. Returns are resource-intensive for retailers since they drive up shipping costs and lower the profitability of each declined well.
AR helps to connect with Gen Z
Brands and retailers are trying to figure out the best methods to connect with Gen Z consumers as they gain influence. E-commerce needs to communicate with these young people in the same cutting-edge language because they have grown up with technology. Additionally, they want to make sensible financial and environmental choices and regard shopping as an adventure rather than merely a business transaction.
Gen Z shoppers tend to carefully evaluate fashion products before making purchases; therefore, it's crucial for e-commerce to offer them the most convincing evidence. They are persuaded by the usage of AR try-on since it fosters the development of better-informed opinions. Additionally, it offers fresh ways to interact with Gen Z online, such as through social media and the Metaverse.
In relation to social media, young people view clothing as a creative and self-expression tool. A post on a social media platform frequently calls for a bold outfit that will be worn only once before being either forgotten or returned. It does not in any way protect the environment.
Gen Z is environmentally conscious and works to lessen pollution. They can recognize the benefits of digital clothing. They'll also enjoy the manufacturing of tangible clothes upon request, driven by the desire to save the environment.
Improves customer satisfaction and reduces returns
Brands increase customer confidence by making online products "physical," which in turn lowers return rates. Sales are increased because customers are more inclined to click "add to cart." They are less likely to send things back, saving businesses money on shipping, restocking, and repackaging expenses. Both financially and in terms of client happiness, it benefits businesses.
AR facilitates the discovery of new talent
Financially speaking, becoming a fashion designer is difficult. To produce their initial items and collections, aspiring fashion designers frequently need to use their own funds. They must purchase clothing, clothing accessories, and other items. They also need models and a show that uses a lot of resources to produce an impressive presentation.
Emerging creatives may display their collections to buyers, consumers, journalists, and influencers more sustainably and economically with AR. In addition, by removing financial and geographic restrictions, augmented reality can make contests for emerging fashion designers more inclusive and accessible. These competitions might even spread to the Metaverse.
As a result, the fashion business will grow more democratic, giving more creative fashion designers a chance to work there.
Although operating an online clothing business is less expensive than operating a physical one, budding designers still need to win over their audience. For this, they also require digital tools. Customers are typically wary of designers they are unfamiliar with. The consumer mindset needs to be changed with a lot of work.
The inaccuracy of predictions may make them appear to be a pointless endeavor when used to foretell the future. In addition, there are always a few black swans waiting for the right moment to strike and alter the course of events. However, it's not really a prediction that AR will enhance e-commerce because it already has.
The most progressive brands and shops are inclined to try out this technology. They understand how it can help them with their issues and open up new chances.
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