One of the biggest challenges of e-commerce has always been the lack of physical interaction with products. Customers cannot touch fabrics, try on clothing, or see how a piece of furniture looks in their home until after they purchase it. AR addresses this problem directly by letting customers visualize products in real environments. For example, IKEA has an AR app that allows shoppers to place true-to-scale furniture in their homes, reducing uncertainty. Similarly, beauty brands like Sephora have used AR to let customers virtually try on makeup shades, eliminating guesswork and boosting confidence before they buy.

VR can transform online shopping into an immersive experience. Imagine putting on a VR headset and walking through a fashion boutique, browsing racks, and seeing how an outfit looks on a digital avatar that matches your body type. This not only mimics the in-store experience but enhances it by offering personalization and convenience that physical stores cannot always provide. The immersive nature of VR encourages customers to spend more time engaging with products, exploring collections, and interacting with brands. This leads to higher engagement and often, higher sales.

Another significant advantage of AR and VR in online shopping is their ability to reduce returns. Returns are a major challenge for e-commerce businesses, often due to mismatched expectations. A customer might order a sofa only to find it is too large for their living room or buy makeup in the wrong shade. By offering try-before-you-buy tools through AR, businesses see a decrease in costly returns and an increase in customer satisfaction. When customers feel confident in their choices, they are more likely to convert, which improves overall sales performance.