Using Augmented Reality Previews for Products: A New Way to Boost Conversions

Our team has been drawn to the use of augmented reality technology. We have been amazed with its ability to blend the virtual with the real world. It lets you interact with digital data and real environments all in real time. Brands using AR see conversion rates increase by up to 94%, while return rates drop by 40%. 

What started as a novelty has become an essential component of modern retail strategy, with over 90% of American shoppers now using or open to using AR for their shopping needs. Let’s check out how Augmented reality e-commerce applications are impacting sales and shopping experiences.

What is Augmented Reality?

Augmented reality creates an enhanced version of the real world by overlaying computer-generated content like images, sounds, and text onto your physical environment. Unlike virtual reality which creates completely artificial worlds, AR adds digital elements to what you're already seeing around you. This technology uses your smartphone camera or AR glasses to blend virtual objects with real-world settings, creating interactive experiences that feel natural and intuitive.

AR works by using computer vision and object recognition to understand your surroundings and place virtual items precisely where they should appear. When you point your phone at your living room, AR can accurately place a virtual sofa that looks like it belongs there, complete with proper lighting and shadows. This seamless integration of digital and physical worlds makes AR particularly valuable for shopping, as it bridges the gap between online and in-store experiences.

What is Augmented Reality in E-Commerce?

Augmented reality e-commerce transforms how customers interact with products before buying them. Instead of relying on static images or product descriptions, shoppers can now visualize items in their own space, try them on virtually, or see how they work in real-time. This technology addresses the biggest challenge of online shopping: uncertainty about how products will look, fit, or function in real life.

AR shopping experiences come in many forms:

• Furniture retailers let you place sofas, tables, and decorations directly in your room using your phone's camera. 
• Fashion brands offer virtual try-ons where you can see how clothes, shoes, or accessories look on your body. 
• Beauty companies provide makeup simulation tools that show exactly how different shades and products appear on your face. 
• Home improvement stores allow you to visualize how new paint colors or flooring will look in your space before making major purchases.

Modern AR applications can account for lighting conditions, room dimensions, and even fabric textures to create realistic previews. Customers can walk around virtual furniture to see it from different angles, zoom in on details, and even open drawers or doors on digital products. 

AR vs. VR

While both technologies create immersive experiences, AR and VR serve different purposes in retail:

• Reality Integration: AR overlays digital elements onto the real world, while VR creates completely virtual environments that replace your surroundings.
• Accessibility: AR works on smartphones that most people already own, while VR requires special headsets and equipment.
• User Freedom: AR users remain aware of their real environment and can move around freely, while VR users are isolated from the physical world.
• Shopping Application: AR allows you to see products in your actual space (like placing furniture in your living room), while VR might transport you to a virtual showroom.
• Cost and Setup: AR experiences are generally more affordable to implement and easier for customers to access.

Why Use Augmented Reality for E-commerce?

Today's shoppers, especially younger demographics, expect interactive and personalized experiences when they shop online. AR delivers these experiences while solving practical problems that have plagued online retail for decades.

Here’s why you should use AR in e-commerce:

• Massive Conversion Rate Improvements: Shopify's internal data reveals that products featuring AR content see 94% higher conversion rates compared to those without it. This isn't a marginal improvement – it's nearly double the sales performance. 
• Dramatic Reduction in Returns: Product returns are expensive and frustrating for both retailers and customers. When customers can virtually try on clothes or see furniture in their space, they make better-informed decisions that they're less likely to regret.
• Improved Customer Engagement: AR experiences are inherently more engaging than traditional shopping methods. Studies show AR content generates 200% more engagement than non-AR alternatives.
• Reduces Fear to Buy: The biggest barrier to online purchasing is uncertainty. AR removes this barrier by showing customers exactly what they're getting. When shoppers can see how a product looks in their space or on their body, purchase anxiety drops dramatically. This confidence boost is especially important for expensive items like furniture or electronics.
• Competitive Advantage: With 61% of consumers preferring retailers that offer AR experiences, companies implementing this technology gain a significant edge over competitors. Early adopters are establishing themselves as innovation leaders while building stronger customer relationships.
• Higher Average Order Values: Customers who use AR features tend to purchase more items and spend more per transaction. The enhanced confidence and engagement that AR provides often leads to customers buying additional complementary products or upgrades.

Real-World Use Cases of Augmented Reality in eCommerce Product Visualization

Here’s what Augmented reality e-commerce can do for your business:

Interactive Product Demos and Virtual Try-Ons

The beauty industry has become a showcase for AR's transformative power. L'Oréal leads the charge with its ModiFace technology, which has processed over 100 million virtual try-on sessions, representing a 150% increase from the previous year. The company's AR tools deliver 2.5 times higher conversion rates for lipstick purchases, proving that virtual try-ons translate directly to sales.

Sephora has revolutionized in-store experiences with AR mirrors that provide 31% higher sales and 90% better conversion rates compared to traditional shopping. Their Color IQ foundation matching system uses AR to analyze skin tones and recommend perfect shades, while virtual makeup try-ons let customers experiment with bold looks they might not try otherwise. 

Ray-Ban and Meta collaborated to create AR try-ons for smart glasses, allowing customers to virtually wear different styles while exploring advanced features like built-in music players and AI assistants. This approach reduces purchase hesitation by replicating real-world "try-before-you-buy" behavior in digital environments.

Furniture and Home Decor Placement

IKEA pioneered AR furniture placement with its Place app, which allows customers to visualize how products will look in their homes with 98% accuracy. The app automatically scales products based on room dimensions, showing textures, lighting effects, and shadows that make virtual furniture appear remarkably realistic. Customers can walk around placed items, view them from different angles, and even share their configurations with family and friends before making purchases.

The business impact has been substantial. IKEA reports 189% higher conversion rates for products available in AR, along with a 40% reduction in furniture returns and a 35% increase in average order value. The app's visual search feature, powered by Grokstyle, lets users photograph any furniture they see and find similar IKEA products, creating seamless shopping experiences that blend inspiration with purchase capability.

Wayfair's "View in Room" feature delivers similar results, with 92% higher conversion rates for customers who use AR visualization. The platform places true-to-scale 3D models in customers' spaces, complete with realistic textures and materials that help buyers make confident decisions about large purchases.

Innovation in AR Shopping

Midia's Ride the Wave AR Experience showed how appliance manufacturers use AR to showcase complex product features. Created for Lowe's retailers, this experience highlights washing machine technology through an interactive demonstration featuring a miniature surfer riding waves created by the washer's impeller system. Customers learn about vertical jets, boosting paddles, and dispenser systems while being entertained by the creative presentation.

Burberry has consistently pushed AR boundaries in luxury retail. Their latest virtual scarf try-on experience uses advanced web 3D technology to let customers virtually explore iconic scarves with up to 50 different options and traditional styling methods. The experience works seamlessly across devices, from smartphones to desktop computers, making luxury shopping accessible anywhere.

Burberry has created immersive store experiences, AR-powered billboard campaigns, and social media filters that blend heritage craftsmanship with cutting-edge technology. Their Lola bag AR viewer provides 360-degree product exploration, letting customers examine intricate details like interior pockets and hardware finishes that would be difficult to showcase in traditional photos.

AR eCommerce on Social Media and Gamification

Snapchat has transformed AR from novelty filters into serious business tools, with over 300 million users engaging with AR lenses daily. The platform's sponsored AR filters generate over 5 billion plays daily, creating massive exposure opportunities for brands of all sizes. Snapchat users spend an average of 3 minutes per AR lens session, providing sustained engagement that traditional advertising cannot match.

The Snap Shack collaboration with Shake Shack exemplifies how AR can transform physical retail spaces. This four-day takeover featured AR-enabled statues, virtual try-on mirrors, and custom merchandise that could only be purchased through Snapchat's e-commerce lens. The experience demonstrated AR's ability to bridge digital and physical retail while creating buzzworthy moments that drive foot traffic and social sharing.

Instagram's AR ecosystem reaches over 500 million monthly users, with research showing that AR content receives 70% more engagement than standard posts. Brands using AR filters see significantly higher memory recall rates, with some studies indicating 34% higher click-through rates for AR advertising compared to traditional formats.

Vodafone has experimented with AR across multiple touchpoints, from direct mail campaigns that activate through QR codes to in-store shopping experiences that provide enhanced product information.

Customer Education 

AR excels at making complex products understandable through interactive education. Automotive companies use AR to show engine components, safety features, and customization options in ways that traditional brochures cannot match. Customers can virtually open hoods, explore interiors, and see how different options affect vehicle appearance and functionality.

Gaming elements in AR shopping create addictive experiences that encourage repeat engagement. Shake Shack's White Truffle Hunt used scannable QR codes throughout New York City, letting participants virtually "dig" for prizes while promoting new menu items. This gamified approach combined location-based marketing with AR interaction to create city-wide engagement campaigns.

Beauty brands have mastered AR gamification through virtual makeup challenges, seasonal filters, and influencer collaborations that encourage user-generated content. These campaigns create viral moments while collecting valuable data about customer preferences and behaviors.

Conclusion

The AR revolution in e-commerce isn't coming – it's already here, transforming how millions of customers shop every day. The technology addresses fundamental shopping challenges while creating experiences that customers genuinely enjoy and share. As AR becomes more sophisticated and accessible, early adopters will benefit from established customer habits and market positioning that will be difficult for competitors to replicate. 

Smart retailers who embrace AR now are building the foundation for long-term success in an increasingly digital marketplace.