Shopping just isn’t what it used to be… depending on who you ask; it’s better. As digital commerce is poised to swallow brick and mortar markets, 3-D technology might be the driving appetite for change.
Don’t just take my word for it.
Statista values the augmented reality market at nearly $31 billion. The market had more than 810 million active users in 2021 and over 400k augmented reality glasses sold. This rapid growth has left some businesses struggling to leverage the new technology effectively, though.
The ‘adapt or die’ principle doesn’t strictly apply to biological processes. Merchants are well aware that technology can make or break them at this stage in the game. In response, merchants are struggling to incorporate video and other interactive elements into their ad and sales budgets. They’re finding themselves going back to the drawing board again and again to keep pace.
Augmented and virtual reality are the next big things on the horizon. Online retailers who want to increase conversion rates and improve their bottom line must impact consumers visually.
What’s the Big Deal?
While AR is new to eCommerce, it isn’t new, per se. It’s actually been around for decades, and has already leaped into the video gaming industry with bright eyes and sharp teeth. Nearly 20% of all consumers have used a VR headset by now. Aside from gaming, VR is widely used by fitness enthusiasts and their supporting industries. Think about the Peloton and any of the thousands of available fitness games on the Occulus. The technology is groundbreaking and applicable in so many ways. Indeed, who knows what industry it will invade next.
The other side of that tech is the AR (augmented reality) market, which can be a critical component of your eCommerce storefront.
Currently, the most popular uses for augmented reality tech tend to lean toward the ‘toy’ category (TikTok filters, online games, and Google’s AR-enabled searches). Many people are starting to imagine other applications for the technology. This is where commerce comes in. A 2019 Google survey reported nearly 70% of consumers found AR helpful when making purchases.
If Google were to perform the same survey again today in 2022, the numbers would be much higher. Why? To put it bluntly: the global pandemic.
Home-Based Shopping With AR Technology
Covid-19 pushed everyone inside their homes and online, naturally prompting consumers to get very cozy with eCommerce. Brick and mortar stores that are just now reopening their doors to the general public are still restricted by social distancing rules and other restrictions that hamper a consumer’s ability to browse as they once might have. Now, because of AR, they can try on or model items and accessories without leaving the house.
Augmented reality can be great for customers eager to browse, but unenthused about the in-store experience. They can model clothing, furnishings, art, collectibles, etc., all without leaving the home.
For online retail, consumers can try on clothing and accessories in real-time. Also, it can provide the user with an experience that isn’t available in brick and mortar establishments. Specifically, AR tech can allow consumers to model furnishings they’re shopping for in their own homes.
If that isn’t impetus for merchants to integrate AR platforms with their eCommerce sites…I don’t know what is.
What About Chargebacks?
Of course, the threat of new scams and chargebacks comes with every new technology. Despite their revolutionary capabilities and sure-to-dominate appeal, AR and VR are also prone to cybercriminals looking for their next opportunity.
Most AR and VR services are offered on a subscription basis through various providers. While this is a remarkable and profitable endeavor for technology services, they also bring chargebacks.
Subscription services are highly susceptible to chargebacks. They can be purchased by individuals, who later forget the purchase was ever made. That user may then contact their bank to dispute the charge, rather than communicate with the merchant to handle the issue directly.
Even though the merchant did nothing wrong, they can be charged additional fees against the lost transaction amount. This ends up costing them more money than they earned in the first place.
I advise merchants interested in increasing their conversion rates through subscription services and AR to have a solid strategy to analyze and combat their incoming chargebacks. Otherwise, the same AR technology which promises a boon to conversion could quickly devolve into a source of loss.
