Say, you’re shopping online for a new sofa. Just aim your phone at your living room. Then the couch appears on your screen. This is not a science fiction; this is Augmented Reality (AR) in action.

AR in online shopping has added a new dimension to customer experience. AR is revolutionising the online shopping experience. You can also try on clothes and makeup. Plus, you can view home decor as it appears in real-time. Businesses that use AR are getting ahead. Consumers demand shopping that’s immersive, interactive, and personalised. Hence, businesses adopting this technology can satisfy those demands and be a cut above the rest.

In this blog post, we will cover how AR boosts e-commerce. We’re going to talk about why it matters, how brands are using it, and how to think about it if you’d like to implement it.

Understanding AR in E-commerce

What is Augmented Reality (AR)?

Augmented Reality adds digital content to the real world. You can see this through devices like smartphones, tablets, and AR glasses. AR boosts the real world instead of replacing it. Unlike Virtual Reality (VR), which fully immerses users in a digital space, AR adds digital elements to what we see around us.

AR in e-commerce lets shoppers engage with products realistically. This boosts their confidence in buying and helps cut down on returns.

Why is AR Becoming Crucial in Online Retail?

  • Bridges the gap between physical and digital shopping
  • Increases customer engagement and satisfaction
  • Reduces return rates by helping customers make informed choices
  • Boosts conversion rates with interactive content

According to a study by Deloitte, AR can increase conversion rates by up to 40%, making it a powerful tool for growth-focused e-commerce brands.

A group of four people engaged in a discussion around a coffee table with a laptop and design materials. Two are wearing VR headsets.

Key Use Cases of AR in Online Shopping

1. Virtual Try-On Technology

Fashion and beauty brands are leading the charge with virtual try-ons.

  • Clothing & Accessories: Customers can see how a jacket or pair of sunglasses looks on them.
  • Cosmetics: Brands like Sephora and L’Oreal use AR so users can try different makeup looks in real-time.

This not only enhances engagement but also replicates the in-store experience.

2. Home & Furniture Visualisation

IKEA, Wayfair, and Amazon let users visualise furniture in their homes before buying.

  • Reduces uncertainty in dimensions, colours, and fit
  • Increases customer confidence in big-ticket purchases

3. Interactive Product Demonstrations

Retailers use AR to demonstrate how a product works or looks from all angles.

  • Electronics: Rotate and explore a 3D model of a laptop
  • Tools: See how a power drill functions in your environment

4. Enhanced Packaging Experiences

AR can bring product packaging to life. Point your phone at a box and watch it reveal:

  • Tutorials
  • Promotions
  • Brand storytelling

This adds an experiential layer that boosts brand loyalty.

Case Studies: Brands Leading the AR Revolution

IKEA Place

The IKEA Place app allows users to drop true-to-scale 3D models of furniture into their rooms. It uses Apple’s ARKit technology. This has led to an apparent rise in online conversions and customer satisfaction.

Sephora’s Virtual Artist

Sephora’s app leverages AR to let users try on makeup. Since launch, the tool has contributed to increased average order value (AOV) and reduced product returns.

Warby Parker

The eyewear brand uses AR to help customers virtually try on frames. Their adoption of AR has made the buying process more interactive, increasing conversion rates.

A business meeting in an office, featuring a presenter at a whiteboard and a viewer with multiple monitors displaying data and graphs.

Technical and Strategic Considerations

Devices and Platforms

  • Smartphones are currently the most accessible AR device
  • WebAR allows AR to function without app downloads
  • AR glasses are an emerging frontier (e.g. Apple Vision Pro, Meta’s Ray-Ban Stories)

Integration with Existing E-commerce Platforms

  • Shopify and Magento offer AR plugins
  • 3D product modelling and AR asset creation can be outsourced or done in-house

Budget and ROI Considerations

Implementing AR may require upfront investment in:

  • 3D modelling
  • App development
  • UX optimisation

But the long-term ROI includes:

  • Higher conversion rates
  • Lower return costs
  • Stronger brand positioning

User Experience is Key

  • Ensure AR features are easy to use
  • Don’t overcomplicate the interface
  • Provide instructions and troubleshooting

A woman in a yellow sweater analyzes colorful graphs on a computer screen, pointing with a stylus.

The Consumer Impact: Data and Trends

  • 61% of consumers say they prefer to shop with AR experiences (Retail Perceptions)
  • 70% of shoppers are more loyal to brands that integrate immersive technologies (Deloitte)
  • Returns can drop by up to 25% when AR is used to aid purchase decisions (Snap Inc.)

These numbers underscore why AR isn’t a novelty but a necessity in today’s competitive e-commerce space.

Implementation Guide for E-commerce Businesses

Step 1: Define Your Goals

  • Boost engagement?
  • Lower returns?
  • Enhance UX?

Step 2: Choose Your AR Type

  • Marker-based AR
  • Markerless AR
  • WebAR

Step 3: Develop or Source 3D Assets

  • Work with AR studios
  • Use tools like Adobe Aero or Unity

Step 4: Integrate with Platform

  • Use APIs or plugins for Shopify, WooCommerce, etc.

Step 5: Test and Optimise

  • Run A/B tests
  • Collect user feedback
  • Monitor analytics for ROI

Common Concerns About AR in E-commerce

Is AR expensive to implement?

While initial costs can be high, scalable options like WebAR and modular app features offer affordable entry points. Long-term savings come from reduced returns and higher conversions.

Will customers use AR?

Yes—especially Gen Z and Millennials. Ease of use and a clear value proposition are key drivers of adoption.

Is AR compatible with all devices?

Most smartphones and tablets support AR. However, ensure compatibility testing is part of your rollout plan.

Embrace AR, Elevate Your Store

With the ever-evolving landscape of online shopping, Augmented Reality is a must-have rather than a nice-to-have. It links e-commerce and brick-and-mortar shopping. It is helping customers take control, gain confidence and increase satisfaction.

To increase engagement, reduce returns, and differentiate, make AR the centrepiece of your innovation strategy. But be capable of proving up your concept — Quickly and economically.

Our service could help seep new life into your dormant store. Discover AR solutions now and convert browsers into lifelong consumers.

Check out our E-commerce Tech & Innovation series for the newest strategies, tools, and trends.