Over the last decade, electronic commerce or commonly known as e-commerce has been on the rise despite the presented shortcomings. Problems like high return rates, non-recognition of customer’s uniqueness or individually targeted marketing, and integrated offline and online mismatch remain critical for many online shops.
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To address the above expectation and reality gap, emerging technologies such as AR, VR, and MR are coming into the picture. But will it be sustainable to reconfigure the broken e-commerce system?
Let’s explore.
Why is the current e-commerce system broken?
Despite advancements in technology, online shopping still faces several major challenges:
1. High return rates
Quite a number of consumers return the products thinking that the exact product they received does not meet their expectations, size or description.
2. Lack of physical interaction
Consumers cannot touch, feel or test the products which they are about to buy therefore leading to a lot of uncertainties.
3. Limited personalization
Most e-commerce platforms still rely on generic recommendations, leading to irrelevant suggestions.
4. Customer trust issues
With fraudulent sellers, fake reviews, and poor-quality products, trust remains a major concern.
5. Engagement and retention problems
Traditional e-commerce experiences can feel monotonous, reducing customer engagement.
Solving these issues became possible through Immersive technology that seeks to alter the customer’s experience into online products and brands.
How Can Augmented Reality (AR) reduce return rates?
Revenue in the AR & VR market worldwide is projected to reach US$46.6bn in 2025. Features such as Augmented reality also enable customers to see the appearance of a certain product in their living space before making the purchase. This technology is mainly applicable in fashion, accessorizing and home decorating and other beauty related industries.
1. ‘Try before you buy
Some companies like Warby Parker and Sephora make it possible for customers to try on glasses and makeup respectively before buying them due to their augmented reality applications.
2. Furniture placement
To avoid disagreements arising from the looks of a piece of furniture once it has been placed at home, IKEA uses an AR app that allows one to view the furniture in their rooms before making a purchase.
3. Size and fit accuracy
The use of augmented reality in fashion e-commerce assists the customer in selecting clothes that will be the appropriate size.
Since customers are able to make informed decisions through the use of AR, there will always be reduced return levels and increase in confidence when shopping online.
Can Virtual Reality (VR) create a more engaging shopping experience?
VR takes online shopping a step further by immersing customers in a fully digital environment where they can explore products in a lifelike setting.
1. Virtual showrooms
Currently, there are virtual stores such as Gucci and Tommy Hilfiger which allow the buyers to move through the store virtually and view the products in a manner that is closest to viewing actual products in a store.
2. Enhanced product demonstrations
Electronics stores can use the VR to display products in 3D hence giving the customers a feel on how to use the product before making a purchase.
3. Live virtual shopping
Brands can host VR-powered shopping events where customers interact with sales assistants in real-time, simulating an in-store experience.
This creates a positive shopping experience; VR improves the satisfaction level of the customers and the overall brand recognition.
How can Mixed Reality (MR) bridge the gap between online and offline shopping?
MR is the integration of both AR and VR with the purpose of providing a smooth transition from the virtual environment into the real world and vice versa. This technology also fulfills the needs of the customers by solving their hybrid shopping needs.
1. Interactive try-on booths
The use of MR in stores to have mirrors that make it possible to display different fashion styles on a customer.
2. Seamless online-to-offline integration
Customers can scan a product online and see how it looks in-store using MR applications.
3. Enhanced customer assistance
MR aides help customers navigate the environment while giving recommendations by sensing the customer’s response to the products.
MR supports the bridge between the digital and actual retailer environments providing more comfort between virtual and actual purchases.
Key to trust in immersive e-commerce
The biggest/primary issue that characterizes e-commerce is the issue of trust. Blockchain technology can improve the security of proximate shopping experiences by increasing objectivity in the shopping journey.
1. Authenticity verification
Through the usage of Block chain, digital products in applications such as AR/VR can easily be confirmed to be original, hence the customers receive genuine products.
2. Smart contracts for secure transactions
Smart contracts based on the blockchain platform offer secure payment transactions in virtual shopping.
3. Decentralized reviews and ratings
Blockchain can result in modification of customer reviews hence the aspect of trust on product quality cannot be a subject to modify.
What are the challenges of implementing immersive technology in e-commerce?
Despite its potential, immersive technology faces several hurdles in mainstream e-commerce adoption:
1. High development costs
Developing AR/VR applications is expensive when it comes to the costs of development implementation.
2. Device compatibility issues
It is specifically important to note that not everyone owns an AR/VR compatible device which confines the technology.
3. Technical complexity
Implementing immersive experiences requires expertise in 3D modeling, AI integration, and real-time processing.
4. Customer adaptability
Some users may find immersive technology overwhelming or difficult to use, slowing adoption rates.
While challenges exist, advancements in technology and increasing affordability are making immersive solutions more accessible to businesses of all sizes.
Conclusion
Immersive technology is not just a trend—it’s a game-changer for e-commerce. With the help of necessary innovations, the use of AR, VR, and MR help improve the overall shopping experience by preventing high return rates, disengagement, and low personalization.
In the near future, new technologies like augmented and virtual reality, AI, and blockchain will revolutionize the consumer’s possibilities of engaging with online stores. Nevertheless there is not a doubt that the e-commerce future is expected to be unbounded. These technologies are the foundation to become the leaders in the revolutionized shopping experience of the future, today.
Also read: 10 Types of Proxies and Their Uses in 2025
