There’s been a lot of buzz around augmented reality (AR) in e-commerce over the last few years. It’s still in its early stages, but the big question is — is it here to stay, or is it just another hype? Let’s take a closer look.
What is augmented reality (AR)?
Augmented reality adds digital objects to your real surroundings, making experiences more interactive. It lets you see 3D objects, animations, or product previews in the world around you.
Imagine using your phone to try on sunglasses or see if a couch fits in your living room. That’s AR. It helps consumers make smarter choices by showing how products will look and fit before they buy.
For online stores, this means fewer returns, more confident customers, and higher sales. And as AR becomes easier to use, more retailers are making it a key part of the shopping experience.
AR vs. VR: what’s the difference?
Virtual and augmented reality (AR and VR) are often grouped together, but they work in very different ways.
Augmented reality (AR) adds digital elements to the real world. You’re still in your own space, but with interactive layers — like a virtual mirror to try on shoes or a 3D preview of a coffee table in your living room.
Virtual reality (VR) creates a completely digital world that replaces what you see around you. Instead of enhancing your surroundings, it immerses you in a completely different space — like a virtual showroom or a digital version of a store.
For retailers, AR is a real game-changer. Shoppers don’t need special headsets or expensive equipment — just their smartphones. It’s simple and accessible for everyone.
Benefits of AR in e-commerce
Augmented reality is making online shopping more interactive and useful for both customers and businesses. Here are some of the key ways AR adds value to e-commerce.
Increased customer engagement
One of the biggest challenges of online shopping is not being able to see or touch products before buying. Augmented reality in e-commerce solves this by offering customers virtual try-on solutions and 3D previews, giving them a clearer sense of size and fit.
AR helps shoppers make informed purchase decisions, leading to higher engagement and improved customer satisfaction. In fact, 57% of customers say they’re more likely to buy from a brand offering AR. The more effortless the shopping process, the more likely customers are to return.
Higher conversion rates
Integrating augmented reality technology into your online store can significantly boost sales. Research from G2 shows that products featuring augmented- and or virtual reality content have a 94% higher conversion rate compared to those without.
Additionally, 40% of shoppers would pay more for products they could customize using AR, which proves its ability to drive both customer engagement and revenue.
Competitive advantage
Retailers using augmented reality in e-commerce stand out from the crowd and turn it into a competitive edge. It reflects a commitment to innovation and customer-focused experiences, attracting tech-savvy shoppers looking for a smarter way to shop.
With over 60% of consumers favoring retail experiences that include AR, brands that adopt this technology are more likely to earn customer loyalty.
Fewer returns
AR helps reduce return rates by giving customers a clearer view of products before they buy. Studies show that better visualization reduces mismatched expectations, with Shopify reporting a 40% decrease in returns from 3D product views.
Explore 8 strategies for building customer-centric, efficient, more sustainable returns
Challenges with AR in e-commerce
While augmented reality offers exciting possibilities for online shopping, it’s not without its challenges. Retailers looking to adopt AR will need to tackle a few hurdles to ensure it becomes more widely used and delivers long-term value.
High development costs
Creating quality AR experiences requires investment in 3D modeling, app development, and platform integration. This can be a challenge for smaller retailers with tighter budgets.
Shopper adoption
While younger shoppers may be open to AR, others still prefer traditional shopping. Clear explanations and a smooth experience can help drive adoption.
Device compatibility
AR relies on smartphones, tablets, and browsers, but performance varies. Differences in camera quality and processing power can impact the experience.
Accuracy and realism
For augmented reality in e-commerce to be useful, it needs to be precise. If virtual previews don’t match real-life size or colors, it can lead to frustration and returns, which defeats one of AR’s biggest advantages.
Types of AR applications in online retail
Augmented reality shopping is changing online retail, giving shoppers new ways to see and try products before buying. Here’s how retailers are using it:
Virtual try-ons
AR-powered virtual try-ons let shoppers see products on themselves before buying. Fashion, beauty, and eyewear brands use this technology to make shopping more interactive and help customers feel confident in their choices.
Product visualization
AR allows shoppers to place digital versions of furniture and home decor in their physical environment before buying. This helps them find the right fit, match their style, and feel more confident in their purchase — reducing uncertainty and minimizing returns.
Interactive shopping experiences
AR is making online shopping more immersive. 3D product models let shoppers explore items from every angle, while AR apps bring store displays to life. Some brands also use interactive user manuals, guiding customers through product features in a more engaging way.
And this is just the beginning. As AR technology improves, these experiences will only get smarter, faster, and even more lifelike.
How retail brands are using AR
Brands are already using AR to create better shopping experiences, bridging the gap between online shopping and the brick and mortar store experience — and the results speak for themselves.
Sephora’s virtual artist
Sephora’s Virtual Artist lets shoppers try on different makeup shades using augmented reality. The feature uses real-time facial recognition technology to map facial features and apply digital makeup with precision and a realistic preview. Sephora's AR tool helps boost customer confidence and drive sales, leading to a 25% increase in add-to-basket rate and a 35% rise in conversions.
IKEA Place lets you preview furniture
Finding the right furniture online can be tricky. IKEA’s Place app solves this by letting shoppers see true-to-scale 3D models of furniture in their actual home before buying to help them choose the right fit and style prevent returns while at it. The app generated more excitement than the website alone — seeing items in their own space made the experience more engaging and helpful for consumers.
Adidas adds an augmented reality technology
Adidas uses AR to let shoppers virtually try on sportswear and sneakers through their smartphone, offering a real-time preview of fit and style. In-store digital screens also provide product details, reviews, and personalized suggestions — some with AR overlays for virtual try-ons.
How to bring augmented reality to your e-commerce store
Adding AR to your online store might sound complex, but it’s easier than you might think. With the right tools, you can create interactive shopping experiences that boost confidence and drive sales. Here’s where to start:
Choose the right AR technology
There are two main ways to integrate AR into e-commerce.
Web-based AR
Web-based AR lets shoppers use AR directly from their browser — no app download needed. Many retailers start with WebAR because it’s easier to access and works instantly on mobile devices.
App-based AR
App-based AR offers a more advanced experience but requires users to install an app.
Create AR-ready product models
AR works best with high-quality 3D models of products. If you’re selling furniture, fashion, or beauty products, consider investing in 3D scanning or modeling to make items look realistic when placed in a shopper’s space. Some platforms even offer built-in tools to convert product images into AR-ready formats.
Make it easy to use
The best AR experiences are those that are simple and intuitive. Adding a simple 'View in Your Space' or 'Try It On' button gives shoppers an easy way to interact with AR without overcomplicating the experience.
Test and track engagement
Like any e-commerce feature, augmented reality should be tested and optimized. Track how often shoppers use AR, how it affects conversions, and whether it reduces returns. The more user-friendly it is, the more likely customers will use it.
Future trends in AR e-commerce
As augmented reality technology evolves, innovations like AI-driven personalization, social commerce, and better 3D modeling are changing the way we shop online. Here’s what’s next.
AI + AR = a smarter shopping experience
AR helps shoppers see products in their space, but AI makes it even smarter. Imagine AR suggesting the right size, style, or fit — all based on your shopping history.
Social media and AR shopping
Social media is increasingly shaping online shopping, and AR is making it even more engaging. Virtual try-ons on platforms like Instagram, Snapchat, and TikTok let shoppers instantly test products, turning casual scrolling into shopping with just a tap.
More realistic AR experiences
The Metaverse is bringing a whole new level to shopping with interactive virtual environments. Companies like Apple are pushing AR forward with headsets and wearable glasses, making it easier to incorporate into our everyday lives.
So, is AR worth investing in?
After looking at AR’s impact on the e-commerce industry, along with the benefits and challenges it brings, you might still be wondering if it’s worth the investment. Well, the data points to a clear answer. The market is projected to grow from $60 billion in 2025 to $353 billion by 2030, with a CAGR of 42%.
Although high-quality 3D models take time and resources to develop, and not every shopper is using augmented reality yet, the technology improves and more brands get on board. AR isn’t just another fleeting trend — it’s here to stay, for good.
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