Uses of Virtual Reality in E-Commerce

Given how the digital landscape is constantly changing, it should not be surprising that e-commerce is changing with it.

According to Statista, global e-commerce sales exceed $5.7 trillion in 2022. Researchers project that the growth is not going to stop in the future.

And why would it? With emerging technologies enriching the shopping journey and wider delivery and internet access worldwide, even those living in remote areas can expect delivery at their doorstep.

A recent and exciting trend is the gradual use of virtual reality in e-commerce. Online retailers are starting to adopt this technology to strengthen their connections with customers and provide memorable experiences that truly stand out.

Virtual reality (VR) could be the answer. It is picking up steam, and the applications go beyond e-commerce. But why is virtual reality gaining momentum, and can it replace a real shopping environment one-for-one? Let’s delve deeper into understanding the impact of a virtual environment and what it means for e-commerce.

Virtual reality vs. augmented reality

While often confused due to their shared immersive potential, virtual reality and augmented reality function in fundamentally different ways within the digital commerce space.

VR takes you to a different reality. After you put on an opaque VR headset like Oculus Rift blocking your peripherals, the real world surroundings disappear, giving you an immersive experience of an entirely different world.

Meanwhile, augmented reality (AR) adds to your vision rather than replacing it with a new virtual space. It usually comes in the form of transparent glasses that you put on. While looking around, you see additional objects outside of our world.

Both virtual and augmented reality are part of what is known as immersive technologies, sometimes referred to as extended reality. Besides AR and VR, there are also:

• Mixed reality
• Holography
• TelePresence
• Digital twin

Brands can also leverage AR filters on a smartphone through social media platforms like TikTok, Snapchat, and Instagram to create interactive experiences and engage customers.

Advantages of VR in e-commerce

So, what is it about VR technologies, and what does it bring to the e-commerce industry? Regular shoppers might not even be aware of its existence, particularly while it is relatively new in the context of online stores.

By developing virtual storefronts and offering VR experiences, retailers can leverage the technology and enjoy the benefits it provides.

Showing that you care

The fact that a store goes the extra mile to implement virtual reality works in favor of building trust among consumers. Not every online retailer is willing to invest in VR technologies.

By becoming one who favors virtual try-ons in their store, you stand to become a brand that is not just about pushing new technologies to sell products to consumers. No, you would be a business that prioritizes customer experience because VR functions as a feature to help shoppers, first and foremost.

Showcasing the products in virtual showrooms

One’s virtual reality shopping experience is about getting the feel of products before committing. Shopping online is not the same as shopping in a brick-and-mortar store. You do not have an opportunity to view the goods in person.

Take kitchen or bedroom furniture, for instance. Regular online stores usually offer static product images and, in some cases, videos.

However, online shoppers want to get as many details as possible, and a virtual shopping experience lets you browse through the items as if you were in one of the physical showrooms selling furniture.

Focusing on storytelling

Some online retailers fail to establish and maintain relationships with clients not just because they offer lackluster goods or services.

No, a modern consumer is keen to go beyond a common customer experience. One way to enrich one’s online shopping experience is to tell a story with the help of virtual reality.

Immersing yourself in a virtual world gives a better idea of what the brand is. It is one thing to browse your average online store website and another to teleport yourself to virtual showrooms where you can feel all the good that a virtual storefront brings.

Creating more engaging advertisements

Attracting new customers without marketing efforts is hardly possible. Whether a brand focuses on social commerce or email marketing, its customer base grows consistently with enough resources dedicated to marketing.

The problem with modern ads, though, is that shoppers are fed up with them. Living in a consumerist work comes with the constant bombardment of ads. People want to get away from it. Or, at the very least, see something new and interesting.

One’s virtual experience can also include interactive ads. Brands can engage customers with questionnaires or game-like advertisements. Blending promotion with entertainment is no secret method, but it is one way to overcome bland ads and offer potential leads something fresh.

Saving physical space

One of the most underrated aspects of virtual reality is how it helps save physical space. Those who work in the retail industry are aware of warehousing and inventorization.

VR technology creates a virtual warehouse that works as a placeholder for physical goods. Online sellers do not have to invest in physical facilities and can instead keep track of everything in a virtual environment.

Increased Conversions for E-Commerce Brands

By providing features such as virtual try-ons and 3D product visualizations, brands can enhance customer confidence in their buying decisions. Additionally, storytelling within the VR environment can deepen customer engagement by enriching the overall brand experience. Creating impactful and interactive advertisements within these virtual spaces can also attract new customers in a saturated market.

Applications of VR in E-Commerce

Virtual reality experience is not applicable to every industry (not yet, anyway); the technology is easier to implement in some retail environments, while others are looking for ways to solve obstacles.

Since VR remains in its infancy, one can think of it as an experimental environment with plenty of room for improvement. Still, some industries are making the most out of it.

Grocery

Grocery shopping is not complicated. You have product types that you know and choose from, but with the help of display technologies and VR,  the retail sector can make the experience even better.

Imagine someone being unable to do the shopping in person because they are stuck at home. Well, putting on a VR headset, they can take a virtual trip in the store and add groceries to their cart as if they were there in person.

Such an immersive shopping experience might not seem the most practical because there are plenty of online services that offer to do the grocery shopping for you. Some people, though, enjoy the actual shopping experience, going from isle to isle.

Augmented reality comes in handy as well. It replaces shopping assistants who can provide information about the product and its brand.

Furniture

As mentioned already, furniture is another example of how virtual reality in retail helps with boosting customer satisfaction.

If you are looking for a new table or a set of chairs, you cannot get a good idea of how it would look by analyzing product images online.

This is where the “try before you buy” principle comes into play, fundamentally changing the shopping experience. With virtual showrooms, potential customers can step into a digitally rendered environment where they can truly appreciate how furniture will fit into their living spaces. These advanced 3D visualizations and 360-degree videos allow shoppers to rotate, zoom in, and even customize products, providing a far more interactive and informative experience.

Clothes

Virtual dressing is not the same as a retail experience you get to live out by going to a brick-and-mortar store and putting the clothes yourself.

This is where virtual try-ons for clothing come in. Some have already dubbed it the future of fashion. A virtual fitting room is not that complicated.

Think of it as a magic mirror. You have a screen in front from which you can choose your outfit, just like you would in a video game dressing up your character. Except in this case, with the help of VR, you are your own gaming avatar in a virtual world trying out various clothes to see how they actually look on you.

You can take selfies in front of the “magic mirror” and create an album as a reference. In case you delete some pictures accidentally, it should not be too difficult to recover deleted photos from iPhone or another device.

Seeing how the clothes look is an excellent way to personalize the shopping experience and boost conversions. And if the conversion rate increases while the return rate shrinks, it makes the store happy.

Cinema

Cinema is one of the earliest industries to adopt virtual and augmented reality. 3D glasses paved the way for more immersion.

Virtual reality in cinema is not about observation. Rather, it is about interaction with an environment. Cinema watchers touch objects, sense the air around them, and perform various actions.

Putting on a VR helmet transforms you into a cinematic universe where you are more than just an observer. You feel like you are one of the characters playing their part in the story.

Such immersive experiences are a great alternative to traditional cinema, and they are bound to become more prominent in the future thanks to accessibility to VR.

VR shopping platforms

The impact of virtual reality can be backed up by the fact that major corporations are utilizing it. Below are three examples of commerce giants that find VR quite handy.

Walmart

Walmart discovered that virtual reality provides insightful details about employee skills. With the help of Oculus Rift headsets, they established innovative training programs to boost engagement rates among employees.

The VR environment also helps with saving time in training. According to Andy Trainor, one of the people in charge of Walmart’s training programs, virtual environments provide an opportunity to shorten certain training exercises from 45 minutes to 5 minutes.

Amazon

It’s been announced about six years ago that Amazon has been working on implementing a VR shopping experience.

The company identified how capable the technology is, and it continues to seek new ways to implement it.

Right now, Amazon customers can check the virtual try-on service for shoes as well as Amazon Explore Travel—a service that lets you go around the world and experience various locations in a virtual environment. Not surprisingly, Amazon also lets you shop for local items in real-time while you are traveling.

Alibaba

Alibaba was one of the first to delve into virtual reality. Some called it a fad, but they proved doubters wrong.

Right now, Alibaba has its own 3D luxury shopping platform called Tmall Luxury Pavilion. Digital avatars, collectibles, try-ons, and 3D shopping are some of the most notable features of the platform.

In addition, Alibaba raises its brand awareness by hosting AR fashion shows and other similar events to engage an audience that is interested in virtual reality.

Conclusion

To sum it all up, VR continues to grow its presence in multiple industries, including e-commerce. Some people remain skeptical, particularly because of how expensive the technology is to implement or acquire for consumers.

Nevertheless, the projections suggest that virtual reality will make an even bigger impact.

The future of VR technologies lies in their accessibility and creative app uses, helping retailers sell products, cut costs, and elevate every touchpoint of the customer experience—from virtual showrooms to interactive fitting rooms and personalized shopping journeys.

At the end of the day, we are living in a consumer world, and if there is a way to enrich the buyer journey with VR, you can bet that companies will make the most out of it.

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