The fallout from the pandemic, changing consumer habits, and the growth of online shopping have combined to have a huge impact on retailers and their e-stores. Given technological developments, especially in the e-commerce market, it is not enough to simply recognize the needs of customers and utilize traditional methods to stay ahead of the competition with online store owners. Moreover, retailers have to anticipate customer needs and upcoming trends, and the only way to achieve this is by investing in technological solutions to conquer the modern electronics market.
Definition of Augmented Reality (AR)
Routine trips to electronics stores or malls have become more and more time-consuming in modern times, so there is a need for technology to make life easier for human beings, and Augmented Reality is the solution. It is defined as an enhanced interactive version of the real world environment, realized through digital visual, sound and sensory stimulation through holographic technology.
For example, Thomas Cook employees can use augmented reality (AR) to tour the Egyptian pyramids, check out a virtual Audi showroom from the comfort of their own home, or simulate a virtual kitchen with the latest IKEA furniture. It is worth noting here that augmented reality (AR) is different from virtual reality (VR), which is a technology based on projecting virtual objects and information into the real user’s environment to provide additional information or guide him to understand something. Virtual reality is a technology that projects real objects into a virtual environment.
To understand how augmented reality (AR) can help your brand, and how investing money, time, and resources in its applications can be worthwhile, you need to understand the importance and benefits of using AR technology in your online store.
I am going to mention 7 benefits you will get when using Augmented Reality in your online store and learn about them next.
The Importance of Using Augmented Reality in Ecommerce
1. Augmented Reality Improves Conversions and Sales
According to Shopify, augmented reality can help you sell more products on your online store. According to Shopify stats, brands that use augmented reality see a roughly 250% increase in retail conversions. This is because customers can pick up anything and move it around the house, and even try on clothes.
2. Augmented reality is driving sales of other products
One of the most fundamental concerns of consumers is ensuring that certain categories of products, such as furniture, fit perfectly with their design from the customer’s perspective. Applications based on Augmented Reality (AR) technology can help customers to make effective design decisions before purchasing a product, as it enables customers to check whether a piece of furniture is suitable for the room, and (AR) applications help to decorate the room and the entire Room space; for example, a customer may purchase a wardrobe, table, or other interior item instead of just a sofa.
For retailers via online stores, this technology is an ideal opportunity to collect data, offer products with similar designs, and increase the chances of selling multiple products at the same time.
3. Augmented Reality Reduces Product Return Issues
Returns are a major problem faced by online store owners. Because this resulted in a loss of $550 million, and one of the most important reasons for this problem is that the product is not the right size, color or shape as shown in the image. Here, augmented reality profoundly impacts purchasing decisions, reducing frustration, confusion and returns. When customers see how a product will look at home or on their body before purchasing, they are more likely to be satisfied with the product, so they have fewer reasons to return it when they receive it.
Using a “try before you buy” strategy, companies can increase conversion rates and reduce merchandise revenue as people gravitate toward augmented reality; reducing the risk of buyers being disappointed by unfamiliar products.
4. AR helps sell lesser-known and more expensive products
Less popular and more expensive products attract a narrow target audience, these customers are called “long tail”; because only a few people are willing to buy, and with augmented reality, the sales of these products will increase; when using augmented They feel more comfortable and relaxed when exploring unfamiliar products. Sellers in e-commerce marketplaces can benefit from augmented reality; stimulating demand for premium products by reducing consumers’ fear of unfamiliar product categories.
5. Augmented Reality Helps Attract New Customers
After the spread of the new crown epidemic, a large number of people stayed at home and relied on e-commerce markets to purchase goods. Through augmented reality applications, people in isolation can purchase the goods they need from online stores, regardless of potential risks caused by epidemics, geographical locations or disabilities. limit. Thus attracting new customers.
6. Augmented reality helps customers remember your brand and shop again
The results showed that augmented reality elicited a stronger response from customers. This is because it improves memory and generates stronger feedback from consumers that customers are more likely to remember you and buy from your online store again.
7. Improve employee productivity and customer experience
Augmented reality creates a unique digital experience that combines the best of the digital world represented by e-commerce marketplaces and brick-and-mortar stores. In fact, customers have become accustomed to judging the quality of brands primarily by their ability to deliver digital experiences.
Augmented reality can be experienced through standard smartphones and mobile apps. Recent advances in augmented reality enable consumers to have an immersive experience through a web browser.
Augmented reality can add innovation to your productions; thereby increasing the efficiency of your employees, making their work more accurate and less labor intensive. Augmented reality (AR) systems provide real-time barcode scanning, internal navigation, seamless data integration with warehouse management systems, and object recognition; These features help employees:
- Check prices, product location, and quickly deliver goods to customers: store associates scan barcodes on customer receipts and use hints and navigation arrows to find orders in warehouses; thus, ordering platforms can find suitable customers more quickly in crowded warehouses Products of.
- Commodity inventory management: The AR system allows merchants to scan the barcodes of multiple commodities at one time and see real-time inventory information on the screen; this improves the efficiency of online stores and reduces inventory management costs.
Examples of using augmented reality in e-commerce
1. IKEA Square
IKEA Place, created by IKEA, allows shoppers to place furniture in their home using augmented reality through a smartphone camera; they can imagine how the piece would look in their environment.
2. Sephora’s Virtual Artist
Sephora is using 3D facial recognition technology to introduce augmented reality into its marketing campaigns. The Virtual Artist app allows users to try different makeup products by simply scanning their faces; boosting shoppers’ confidence and purchase intention by showing how makeup will look after application.
3. Augmented Reality Mirror (Amorepacific)
Amorepacific’s mirror allows customers to easily check whether a scarlet or pink lipstick would suit them better, even while wearing a mask; the mirror takes an image of the customer’s face, analyzes it, and then recommends products based on skin texture, taking into account any imperfections , wrinkles or dark circles, and then enable them to see a computer-generated image showing what a wide face would look like. Foundation, Blush, Eye Products and Blush, Lip Collection.
Some online store owners implemented augmented reality yesterday, others are adopting it today, and still others will start thinking about it tomorrow. This is because augmented reality offers strategic benefits that companies cannot ignore. Soon, AR will transform from an advanced functional category to an indispensable category in the e-commerce retail market.