Virtual reality in e-commerce

Virtual reality is becoming increasingly important in e-commerce. Many retailers are already using the technology in different scenarios to make the customer shopping experience more exciting and intense. This can lead to a higher conversion rate.

Virtual and augmented reality are opening up new opportunities in e-commerce. Augmented reality (AR) is an interactive experience of a real-world environment where the objects that reside in the real world are enhanced by computer-generated perceptual information (source: wikipedia). The terms virtual reality (VR) and augmented reality are often used as synonyms. In VR, however, this focus is on creating a new, virtual environment for the user.

For some years now, retailers have already used various AR and VR applications in their shops. According to a study by Capgemini, the use of AR and VR in companies will be standard by 2023 (Source: eCommerce Magazin). The potential fields of application include many sectors and markets. Since 2018, the German mail-order company Otto has offered an app that customers can use to virtually look at furniture or accessories in their apartment using AR.

eBay has developed the first VR store as an app for iOS and Android. In the app, customers can make products seemingly ‘float’ in “category bubbles”, allowing product details and more detailed views to be seen (source: mds.visual). The retail platform Alibaba takes a different approach. In partnership with chains such as Macy’s and Costco, high street stores have been equipped with a 360° camera so that users can walk through the stores virtually, allowing them to shop there like in a physical store. Alibaba therefore provides a virtual representation of reality – as if it is the Google Street View for retail.

Other companies such as IKEA, Gap and Apollo have also gained experience with AR and VR. The companies believe that they can increase the conversion rate in their online shops. And the use of innovative technologies positively influences their corporate image and can boost customer loyalty.

One thing to consider is that the capturing of products in 3D is very expensive. The more products from a retailer’s range that are to be shown virtually, the more expensive the proposition becomes.

Smaller projects can be implemented using an app or web-based VR and AR applications (e.g. Spark AR from Facebook or Amazon Sumerian). The options provided by these solutions are limited, however. Projects with greater precision or additional interaction with users can be implemented using specialized service providers. This approach is for understandable reasons more expensive.

Before retailers invest in VR or AR, they should consider that not all products are suitable for this kind of presentation. Games, furniture, living accessories, but also cosmetics and fashion benefit from being presented in a virtual space. If the applications provide the customer with added value and a solid user experience, the use of VR applications can become a competitive advantage in the fiercely contested e-commerce market.