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Mixed reality e-commerce experiences are redefining shopping anywhere

Immersive

As e-commerce evolves, immersive technologies like AR/VR and spatial computing bring the tactile experience of in-store shopping anywhere, 
from mobile apps to consumers' homes. Today, reverse-image search is 
a fast-growing trend which allows consumers to upload a photo of a product to a search engine to identify the item and retail outlets where it’s available.

Retailers also leverage body scanning, biometric data and virtual try-on platforms to offer individualized shopping experiences that increase shopper confidence in purchase decisions and reduce returns. For example, Google uses generative AI to accurately show what a garment looks like on a set of 80 diverse models representing various body types and sizes.8 Similarly, Ray-Ban’s Frame Advisor Technology scans users’ faces to analyze shape, size and features for a perfect fit.9

A mixed bag

E-commerce is continuing to grow as a slice of the retail pie — from 5.1% in 2007 to 20% in 2023.10 However, 25% of apparel purchased online is returned,11 and returns cost the U.S. retail industry more than $700 billion a year overall.12

Finding a perfect fit

Consumers who opt in could be identified when they enter the store by authenticating through their app or facial recognition. This would let sales associates — human or AI-powered — access their purchase history, preferences and loyalty status to provide bespoke service.

As the shopper moves around the store, smart shelves with sensors and digital displays — or perhaps product tags scanned by a mobile device — could provide real-time information about product provenance, sustainability and availability in the store and online.

Spatial

Spatial computing capabilities are enabling retailers to create interactive mixed reality (MR) environments that people can experience through advanced headsets and smart glasses. In these virtual worlds, shoppers can see 3D digital representations of products, view them from different angles, and manipulate them with hand gestures, voice commands, and body and eye movements. Shoppers will also be able to visit product showrooms, participate in product demos, test-drive vehicles, and talk with sales associates, all from their living rooms.

$120B

The global AR/VR e-commerce market is projected to reach $120 billion by 2027.15

Early adopters

Alo Yoga and e.l.f. Cosmetics, both based in California, have developed shopping apps for Apple’s new spatial computing headset. Alo Yoga’s app16 combines wellness and shopping in a simulated natural environment, and e.l.f. integrates gaming with product discovery.17

tbd

Outook

Emerging use cases, such as virtual try-ons and home visualization apps, are expected to see widespread adoption due to their ability to enhance customer confidence and reduce returns. 

Ensuring accurate and user-friendly technology for body scanning and AR/VR experiences is challenging, and the current cost of MR devices is an impediment. However, as technology advances and costs decrease, retailers that can address privacy concerns and offer seamless, valuable and immersive experiences could lead the way in redefining the e-commerce landscape.