What Is Augmented Reality in Ecommerce? A Practical Overview

While augmented reality in ecommerce may seem futuristic, it's very much a present-day reality. Businesses worldwide are harnessing AR to showcase products, allowing customers to interact with items in ways previously unimaginable.

By 2025, nearly 75% of the global population, primarily smartphone users, will be using augmented reality (AR) regularly. Remember how online shopping transformed the retail landscape at the end of the 20th century? People were initially hesitant, but now it's an indispensable part of our lives. AR is on a similar revolutionary path.

Explore practical use cases, delve into product functionalities, and discover the visionary minds driving these advancements. By immersing yourself in these AR projects, you'll grasp firsthand their transformative potential for enhancing customer engagement and driving business growth.

AR Knowledge Base Contents:

1. What is augmented reality in the furniture industry.

2. Augmented reality in construction: what leaders need to know.

3. Use Case: How AR helped pinterest increase furniture sales by 5x.

4. Use Case: How AR helped build.com reduce return rates by 22%.

5. AR furniture placement: why retailers invest + expert opinions.

6. Implementing AR in your furniture store: costs and tips.

7. Maximizing Sales and Marketing KPIs with Next-Gen AR—Zolak Showroom

See how Zolak can help you power-up online furniture store for growth and revenue.

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What is Augmented Reality in eCommerce?

Augmented reality in eCommerce revolutionizes the shopping experience by bringing the showroom directly to customers, enabling them to preview products or services in their own environments with stunning realism, anytime they choose.

The onset of the Covid-19 pandemic exacerbated the divide between physical stores and online shopping. With retail shops closed or limited, customers couldn't physically interact with products. AR quickly stepped in to fill this gap across various eCommerce sectors.

AR operates by overlaying digital elements onto real-world environments using hardware like cameras, sensors, and displays. These devices detect and interpret surroundings, then project digital content onto screens in real-time. This technology harnesses GPS, image recognition, computer vision, and machine learning to create these immersive experiences.

In eCommerce, AR elements typically manifest as 3D product models or information overlays, tailored to enhance customer engagement and decision-making. For instance, in a grocery store context, AR might display nutritional information or interactive product simulations.

Augmented Reality in eCommerce: The Stats

If you’re an e-commerce retailer, understanding the impact of AR can help you stay ahead of the curve. Here are some key stats that highlight the benefits and growth of AR.

• The AR market worldwide is projected to reach a revenue of $13 billion by 2024.

• With an expected annual growth rate (CAGR) of 6.77% from 2024 to 2029, the market volume is set to hit $18 billion by 2029. This steady growth indicates a robust and expanding market, making AR a key area for investment and development.

• The United States is the primary driver of this market. In 2024, it’s projected to generate $3.945 billion in market volume.

• When comparing augmented reality and virtual reality users in the United States, AR is leading the way. Not only are there more AR users, but the gap between AR and VR users continues to widen.

• AR hardware is rapidly gaining popularity across the globe, with the United States and China at the forefront of technological advancements and market growth.

• By 2029, the AR software market is expected to have approximately 3.7 billion users. User penetration, which stands at 52.8% in 2024, is projected to rise to 56.5% by 2029. This increase in user adoption highlights the growing acceptance and integration of augmented reality technology in everyday life and business.

• The average revenue per user (ARPU) is anticipated to be $3.8. This figure provides insight into the market’s profitability and the value that AR software brings to its users.

• According to a consumer survey by Statista, Gen Z shoppers are the most enthusiastic about using augmented reality in online shopping across various product categories. Millennials aren't far behind, showing a strong interest as well.

• In 2021, online sales for IKEA.com soared to $11.8 billion, marking an 80% year-on-year increase. Although there was a decline in 2022, growth has begun to recover, with 2023 revenues reaching $10.6 billion.

IKEA’s use of AR:

1. IKEA Place App. Customers can select a product and use their camera to scan and map an area, like their living room. They can then drag the product around to visualize it in their home.

2. IKEA Kreativ App. This app allows customers to virtually remove existing furniture or clutter before viewing a new product in its place.

3. 3D Showrooms. Users can browse 3D showrooms from IKEA’s product catalog and design ideas. They can rotate, swap, move, or hang products to see how furniture combinations would look in a realistic spatial setting.

According to AppifyCommerce, the Place app has significantly impacted IKEA's operations, helping to decrease product returns by 20% since its launch.

• In 2020, Walmart.com experienced its highest growth, surpassing 85%. By 2023, its net sales crossed $58 billion.

Walmart’s AR-enabled features:

1. Virtual Try-On. Provides a close-to-in-store fitting experience for clothes. Customers can use two options: Choose My Model or Be Your Own Model. It offers a realistic simulation with fabric draping and shadows.

2. Optical Virtual Try-On. Customers can try on over 750 eyewear products virtually. They can also upload their prescription and use a facial scan to customize their lenses.

3. View in Your Home. This tool allows customers to see how a piece of furniture would look in their home. It includes haptic feedback, creating a vibration if a 3D model is dragged beyond the room’s boundary.

Walmart.com is pioneering virtual try-on for clothing, offering over 270,000 apparel items for customers to try out.

Architecture of Augmented Reality Solution for Ecommerce

We're at a crucial point where people are excited about augmented reality, but many businesses haven't fully explored its marketing potential. Just like e-commerce and mobile technology changed the game before, now is the perfect time for AR to make its mark.

Consumers are embracing AR with enthusiasm, presenting brands with a golden opportunity to enhance engagement, elevate consumer experiences, and drive revenue growth.

Currently, over 100 million consumers are actively using AR to shop online and in stores, underscoring its growing relevance and influence in retail environments. This trend signals a significant shift towards more interactive and immersive shopping experiences that resonate deeply with today's tech-savvy consumers.

Exploring Use-Cases of AR in eCommerce

Try-On Examples of AR in Ecommerce

Sephora’s AR beauty try-on tool is setting a new standard for eCommerce retailers in the beauty industry. This feature allows customers to virtually try on a wide range of makeup products—like lipsticks and eye shadows—directly on their faces. Unlike traditional in-store trials, Sephora’s app lets users explore multiple colors and styles at once, complete with virtual guides and influencer tips.

According to the Glimpse Group, Sephora's AR try-on function has significantly accelerated their online makeup sales. This feature increased sales by 35% and boosted the add-to-basket rate by 25%.

Augmented reality isn’t just for makeup anymore—it’s also making a big impact in skincare. By using AR technology, skincare brands like Clinique are providing personalized skin analysis and recommendations right from users' phones. Clinique’s Clinical Reality app provides a quick 30-second skin analysis. After users scan a QR code and take a selfie, the app assesses their skin for issues like dehydration, acne, and wrinkles. It then offers tailored treatment suggestions based on the results. This quick and detailed analysis helps users address their specific skin concerns effectively.

ASOS, a major player in fashion eCommerce with around 22.3 million global consumers, has been enhancing its app with augmented reality since 2020. Their See-my-Fit feature, developed in collaboration with ZeeKit, uses AR to show how clothes fit and look on models, increasing product views by up to 500 per week. This AR tool makes shopping more engaging and helps customers visualize apparel better.

With the AR-Watches app, customers can virtually try on branded watches using augmented reality. The app offers an intuitive UI for easy online shopping augmented reality and provides comprehensive product details. 

Wanna Kicks is an innovative tool that showcases the practical use of augmented reality in the e-commerce sector. Designed for online footwear shopping, the app allows users to try on sneakers virtually. With AR, users can see how different sneakers look on their feet in real time.

Warby Parker is transforming online eyewear shopping with its AR feature. Their iPhone app lets users virtually try on glasses and sunglasses. Dave Gilboa, co-founder of Warby Parker, mentions that the virtual try-on feature was a long-term vision, made possible by advancements like Apple’s iPhone X and ARKit SDK. This technology provides accurate, real-time facial mapping. Warby Parker’s success with AR has inspired other brands, like King Children and Topology, to adopt similar technologies.

L’Oreal’s Style My Hair app is a great example of how augmented reality can transform the beauty industry. This app uses AR and facial recognition technology to let users virtually try on different haircuts, hairstyles, and professional hair colors before they head to the salon.

Try-Out Examples of AR in Ecommerce

Furnishing can be a challenge, but the Ethan Allen app simplifies the process. Users can browse a wide selection of items and use their camera to visualize each piece in their space.

The Ethan Allen inHome app saves time by allowing users to see furniture in full scale through augmented reality. They can easily select pieces based on texture and color, and calculate prices for a smooth shopping experience. The app also enables purchases and delivery tracking, making the entire process seamless and efficient.

With the ModMyRide app, customers can instantly preview car modifications. Using their phone's camera, they can visualize new rims, paint jobs, and body kits in real-time. This immediate feedback can drive quicker purchasing decisions and higher customer satisfaction.

Customers can select their car model to ensure perfect fitment and browse through a wide variety of brands. Once they find the perfect match, they can purchase directly through the app, streamlining the buying process.

The app allows users to share their customized car images on social media, gathering feedback from friends. This feature not only enhances the user experience but also serves as a powerful marketing tool for eCommerce retailers.

For anyone building, renovating, or redecorating their home, Houzz is an invaluable tool. The Houzz app simplifies the home design process by letting users view products in their actual space using AR. This feature helps users make better decisions and avoid the hassle of visiting multiple stores. Instead, they can shop, hire professionals, and get advice all from one app.

How to Implement AR Technology Into eCommerce Businesses?

• Why do you want to add AR to your online store? Are you looking to enhance the shopping experience, increase sales, reduce returns, or reach a new audience? Defining your goals will help shape your strategy and ensure you're on the right track.

• Once you know your goals, it's time to choose the AR technology that best fits your needs. Developing a custom AR app from scratch can be costly and time-consuming. A more practical option is partnering with a tech company that offers customizable, off-the-shelf AR solutions. When selecting a partner, consider factors like ease of integration, compatibility with your eCommerce platform, available features, and customer support.

• After implementation, it's crucial to track user engagement and behavior. Look at metrics such as conversion rates, time spent interacting with AR content, and customer feedback. This data will help you measure the effectiveness of your AR features and identify areas for improvement.

• The work doesn't stop after the initial rollout. Continuously update and refine your AR features based on user feedback, technological advancements, and changing market trends. Staying informed about new AR technologies and innovations will keep you competitive and ensure you provide cutting-edge shopping experiences.

Be Present

When considering augmented reality for e-commerce, it's essential to focus on the quality of the AR solution you select.

While turnkey solutions can offer a glimpse into this technology, they may not always deliver the best visual quality or scalability, particularly when dealing with extensive inventories.

To ensure a superior AR experience, look for solutions that provide high-resolution visuals and can seamlessly scale with your product catalog.

Quality AR experiences should offer realistic simulations, capturing the true essence of how products would look and function in real life. This includes accurate representation of textures, colors, and dimensions, which can significantly impact a customer’s decision-making process.

Why Zolak Stands Out:

• Unlike many basic AR solutions, Zolak’s next-gen technology is built to scale seamlessly, even with a large and growing inventory.

• One of Zolak's standout features is its ability to let customers visualize and customize entire furniture sets simultaneously. This is particularly useful for cross-selling or showcasing less popular items.

• For retailers with physical stores, Zolak offers an added advantage with interactive touch-screen displays equipped with Zolak Showroom. These displays let customers experiment with different furniture configurations in-store, providing a bridge between the online and offline shopping experiences.

• The platform also supports extensive customization options, from colors to materials, allowing for a highly personalized shopping experience.

• Zolak is designed to work seamlessly across various platforms—whether customers are using mobile devices, desktops, or web browsers. Its cross-platform compatibility ensures a consistent and high-quality experience regardless of how customers access it.

• With competitive subscription plans, Zolak offers a cost-effective solution without compromising on the quality of furniture visualization.

• Integration is straightforward with Zolak. It easily connects with major e-commerce platforms like Shopify, Magento, WooCommerce, and BigCommerce. There's no need for additional apps, making the setup process smooth and hassle-free.

How to Get Started with Zolak:

• Use your existing 3D model files, or work with Zolak’s team to create them from photos and materials.

• Before going live, test the solution with a demo. Zolak will provide a CMS account and set up product demos in pre-designed interiors, allowing you to see how the integration will look on your website.

• Sync products, inventory, and shopping carts using Zolak's API. This step ensures that all your data is up-to-date and seamlessly integrated.

• Install the visual module on your website and launch it. This allows users to interact with 3D furniture visualizations directly linked to your product catalog.

With Zolak, you can enhance your online shopping experience, offering customers a rich and interactive way to explore and purchase furniture, ultimately driving sales and customer satisfaction.