Augmented Reality in eCommerce: The Good, The Bad, The Future

Fact: shopping online can be daunting for many categories, like fashion and furniture, because many customers prefer to see the products before buying. They want to try on the sunglasses. They want to physically measure the sofa themselves, and see how it fits into their living room. They want to imagine all the outfits they can pair with those espadrilles. Enter augmented reality in eCommerce – new technology that will shake up the eCommerce industry and change the way that customers interact with products in a whole new way.

Augmented reality technology allows customers to virtually try on products and see how they may look. Put it this way – it’s the digital equivalent to shopping in person. Customers have the convenience of shopping from the comfort of their homes, but they remove a lot of the unknowns of online shopping, like how a lipstick will blend with their skin tone, how the draping of a dress will suit their body type, or if a gadget truly is customer-friendly and easy to use.

AR Insider reports that the use of augmented reality in eCommerce can significantly reduce returns. That’s news to every Amazon entrepreneur’s ears. How can AR reduce returns? It helps customers visualize the item before they make a purchase. They make informed purchases based on expectations management, early on in the selling relationship. In layman’s speak, they know what they’re getting even before UPS delivers it to their doorstep.

So, in addition to AR being one of the top ecommerce trends in 2025, it’s also a tool that sellers can use to impact profitability, boost the customer experience, and diminish the rate of return.

Let’s get started – here’s why augmented reality for ecommerce matters, and here’s how to implement it in your own Amazon listing.

Section 1: The Rise of Augmented Reality in E-commerce

So, what exactly is AR, and how does it differ from virtual reality (VR)?

To quote TechTarget:

Augmented reality (AR) is the integration of digital information with the user’s environment in real time. Unlike virtual reality (VR), which creates a totally artificial environment, AR users experience a real-world environment with generated perceptual information overlaid on top of it.

Okay, to put that mouthful in layman’s terms, AR can help customers visualize a product in a real-world situation. AR allows customers to virtually place a product anywhere through the use of their smart phone camera – for example, a lipstick shade on their lips, eyeglasses on their eyes, a shelf in the corner of a room, and so on. When you use augmented reality in e-commerce, you help your customers visualize your product in use much better than a lifestyle infographic can.

Virtual reality is a little different – unlike AR, which relies on a customer’s own gadgets, customers use a VR headset to browse and purchase products in a simulated environment. You see products in 3D and can observe them from every angle to easier understand a product’s scale and proportions. VR also uses algorithms to provide personalized recommendations.

The terms “augmented reality” and “virtual reality” are all part of the mixed reality business, which blends the real world and digital elements to various degrees. In fact, you can combine both AR and VR in your digital content for a truly immersive shopping experience.

The journey of AR in retail began as an experiment, aiming to merge the sensory experience of in-store shopping with the convenience of online platforms. Its early applications were seen in the late 2000s when forward-thinking companies like IKEA began to explore AR for virtual try-ons and in-store navigation. The real turning point, however, came with the adoption of smartphones and mobile internet, which made AR accessible to a broader audience.

Soon brands like Sephora and Saudi Arabia’s Bold Retail started incorporating AR, with incredible results. By enhancing user engagement and reducing the uncertainty associated with online purchases, AR has not just stuck around; it has become an essential feature for e-commerce platforms aiming to stay relevant in a rapidly evolving digital marketplace.

So, how about it; are you ready to implement an AR virtual  try-on with your own eCommerce business? Let’s keep exploring.

Section 2: Types of AR Applications in eCommerce

So, now we understand that augmented reality shopping allows customers to visualize themselves using the product, by layering product images onto real-life situations. It cuts the shopping process in half, because of the integration of digital images of products into real-world settings. To put it incredibly simply, augmented reality in e-commerce allows customers to see how products will look without having to go to the store to eyeball the thing in person.

There are a bunch of use cases that prove why it’s one of the top shopping trends of 2025.

Here are some augmented reality applications in the world of e-Commerce:

Virtual Try-Ons

a. AR for clothing: Virtual try-on technology allows customers to see how clothes will look on them through a digital interface. This technology uses augmented reality to project the clothing item onto the user’s image or avatar. Major brands like ASOS and Zara have integrated this feature to enhance the online shopping experience, significantly reducing return rates by helping customers choose the right size and fit before purchasing.

b. Accessories: Accessories like jewelry and watches can also be tried on virtually. Luxury brands like Rolex and Gucci offer AR try-ons that allow customers to see how a watch or a piece of jewelry might look on them from various angles, providing a much richer online shopping experience.

c. Cosmetics: Sephora and MAC Cosmetics are leading examples where customers can test different makeup products virtually via their mobile devices. These applications use real-time facial mapping technology to apply makeup to users’ live images, helping them make purchasing decisions without physically testing the products. L’Oreal also has a smartphone app that lets users try different hair colors virtually – so, gone are the days of going to the parlor and taking a risk on that trendy new ash blonde only to realize it’s the wrong color for your skin tone altogether.

View in Your Room

We’ve already mentioned IKEA – Crate & Barrel, Yamaha (yes, the pianos), Oak Furnitureland, and even Minted (for art!) employ augmented reality experiences to help customers visualize how a painting, vase, coffee table, or baby grand will look in your customers’ homes. This feature uses the device’s camera to overlay the 3D model of the product into the customer’s current environment, providing a sense of size, scale, and aesthetics. It’s been a game-changer for online furniture sales, reducing hesitation in purchasing large items online.

Interactive Product Demos

AR shopping isn’t just about the aesthetics, either. Electronics and appliances often come with numerous features and functionalities that are best understood through demonstrations by in-person sales staff – but of course, so many people would rather shop from home nowadays.

So, augmented reality in ecommerce bridges the gap by allowing customers to interact with the product through their screens. For example, Samsung and LG have used AR to showcase how their electronics and appliances work. Customers can explore features through interactive guides and demos that pop up over the image of the product when viewed in their setting.

Augmented Reality in eCommerce is here to stay

No doubt about it; great AR application that allows customers to use products without risking their money on something they may ostensibly return is a game changer. Customers get their shopping needs online without the risk of purchasing something they may not actually want. Augmented reality is the future for every eCommerce platform, and the best thing about it is, it’s not relegated to a few categories, either. Any type of product can use these personalized shopping experiences with a little imagination.

Section 3: The Benefits of Augmented Reality in eCommerce

Okay, we get it, not everyone’s eager to jump onto the latest trend, even if it sounds promising, especially when it comes to eCommerce selling, which is filled with costs and taxes and whatnot.

Yet, you can’t deny that AR helps eCommerce sellers connect with their customers in a huge way.

1. Enhanced Customer Engagement and Interaction: AR engages users by allowing them to interact with products in a dynamic and immersive way. By integrating AR features such as 3D product visualizations and virtual try-ons, brands can create interactive experiences that capture the attention of customers (read: increased engagement levels). This interactive dimension makes shopping experiences more engaging and memorable, which is crucial for brand differentiation in a crowded market.
2. Reduction in Return Rates Through Better Product Visualization: AR helps customers make more informed purchasing decisions by enabling them to visualize products in their own space or on their person. For instance, AR can show how a piece of furniture would look in a customer’s living room or how a pair of glasses fits on their face. This realistic visualization reduces the likelihood of customer dissatisfaction and, consequently, lowers the rates of product returns.
3. Increased Conversion Rates by Providing Immersive Experiences: By implementing AR, businesses provide customers with immersive experiences that can effectively convey the look and feel of the products. This level of detailed interaction helps mitigate the uncertainty that often accompanies online shopping, leading to higher conversion rates. Put it this way. Would your wife buy a lipstick off an image, or would she prefer to envision how it would look on her first? Especially if she can do that in the comfort of her home, without having to drive to the store? Case closed.
4. Building Brand Loyalty and Customer Trust Through Innovative Shopping Experiences: AR technology signifies a brand’s commitment to innovation and customer satisfaction. By offering cutting-edge shopping experiences, brands can strengthen customer trust and loyalty. Customers appreciate brands that invest in technology to improve the shopping experience, and AR-driven innovations can help position a brand as a forward-thinking leader in its market. In short, customers are likely to keep coming back to your store if you make their shopping experience as seamless as possible.

Section 4: The Challenges of Using Augmented Reality in eCommerce Businesses

Okay – that’s not to say that AR commerce is easy to do. Needless to say, it is a new technology, and although it’s been adapted to success by many global brands, it doesn’t come without challenges.

1. High Costs of Implementation: Developing and deploying AR can be expensive, requiring significant investment in both software and hardware.
2. Privacy and Security Risks: AR applications can capture and store real-time data about users’ environments, raising concerns about data protection and user privacy.
3. Technical Limitations: Issues such as limited field of view, resolution, and latency can detract from the immersive quality of AR experiences.
4. Complexity in Development: Creating AR applications involves complex software engineering and can require advanced skills in 3D modeling and computer vision.
5. Physical and Mental Health Concerns: Prolonged use of AR can lead to physical issues like eye strain and mental health effects like dissociation.
6. Technological and Skills Gaps: There is often a lack of necessary skills and knowledge to implement and maintain AR systems effectively.
7. Resource Scarcity and Competing Priorities: Allocating the necessary resources for AR implementation can be challenging, especially when competing with other priorities.
8. Cybersecurity and Regulatory Concerns: Navigating the regulatory landscape and ensuring cybersecurity measures are adequate can be challenging.
9. Perceptions of the Technology: Overcoming skepticism about the practical utility of AR beyond its novelty is essential.
10. Interoperability Challenges: Ensuring that AR systems work seamlessly across various platforms and devices can be difficult.
11. Over-commercialization: Excessive focus on advertising within AR platforms can detract from user experience and authenticity.

Although augmented reality in e-Commerce allows customers to virtually experience the product from the comfort of their own homes, it’s still a new tech, so being an early adopter will definitely come with a certain amount of risk – financial risk most especially. Now, it’s your call to decide whether the pros outweigh the cons.

Section 5: Implementing Augmented Reality Shopping as a Global Amazon Seller

Time to start using AR to help customers make buying decisions. The AR experience can enhance the online shopping experience, particularly for customers browsing your listings across the globe.

Here’s a Step-by-Step Guide in Incorporating Augmented Reality in eCommerce product listings:

1. Verify Eligibility: First, ensure that you have a professional seller account and that your brand is registered with Amazon’s Brand Registry. This is necessary as only brand owners can integrate AR features into their listings.
2. Choose Suitable Products: We did mention that with a little bit of creativity, any type of D2C could benefit from augmented reality eCommerce, but perhaps there are other products that benefit more.
3. Create 3D Models: You need to create 3D models of your products. This can be done through photogrammetry, 3D scanning, or by hiring a professional 3D artist. Ensure these models meet Amazon’s technical requirements for AR.
4. Upload and Test 3D Models: Upload your 3D models to Amazon’s Seller Central under the appropriate product listings. Use the ‘Manage Your Experiments’ feature in Seller Central to test how these AR models perform in terms of customer engagement and conversion rates.
5. Monitor and Optimize: After launching, monitor the performance of your AR-enhanced listings. Check customer feedback and tweak models as needed to improve user interaction and satisfaction.

Overview of Technical Requirements and Tools

• Technical Specifications: Amazon requires that 3D models be in GLB file format, which supports textures, materials, and animations. The maximum file size is 5 MB.
• Tools Needed: Tools such as Blender, Autodesk Maya, or professional 3D scanning apps are necessary for creating high-quality 3D models. Amazon also offers guidelines and tools in Seller Central to help sellers create compatible AR content.

Importance of High-Quality Content and Localization

• High-Quality Content: The quality of your 3D models directly affects the customer’s perception of your product. High-fidelity models can lead to better customer engagement and reduced return rates because they offer a clearer and more accurate representation of the physical product.
• Localization: For global markets, it’s essential to consider local tastes and preferences in the design of your AR experiences. This includes adjusting the scale, colors, and styles of your 3D models to match regional trends and customer expectations. Additionally, ensure that any instructional content or overlays within the AR experience are accurately translated and localized.

Section 5: Looking Ahead: The Potential of AR in Global Expansion

AR in eCommerce may still be new, but the technology is advancing pretty rapidly. Its integration into global e-Commerce strategies will deepen, significantly altering how consumers interact with brands and make purchase decisions online.

Let’s Get Digital produced a fascinating article on the predictions for 2025 in augmented reality in eCommerce – here’s what it’s going to look like:

1. Increased Adoption and Integration in Various Sectors: AR is set to become more mainstream within the e-commerce space, extending beyond gaming and entertainment into more practical applications like virtual try-ons and interactive product demos. We’ve already seen several examples of augmented reality used to incredible success by retail brands – we’re going to see many more brands adopt AR tools as the years go by. The question is, will you be one of them?
2. Enhanced Personalization and Customer Experience: E-commerce platforms will continue to leverage AR to offer more personalized shopping experiences. This could include AR-powered shopping assistants or more sophisticated AR filters that help consumers visualize products more accurately in their own space, thus driving engagement and potentially increasing sales​.

Potential Challenges and Opportunities for Amazon Sellers as AR Technology Advances

Opportunities:

• Enhanced Consumer Engagement: AR can transform the shopping experience by making it more interactive. Amazon sellers could use AR to demonstrate product features or show how items can be used, thereby reducing the ambiguity that often accompanies online shopping.
• Reduction in Return Rates: By providing customers with a better understanding of how products look and function in their own environments, AR can significantly decrease return rates. This is particularly relevant for categories such as fashion and home decor, where the fit and aesthetic are crucial​
• Global Reach and Accessibility: As AR tools become more integrated into mobile commerce, sellers have the opportunity to reach a broader audience. This technology can help overcome language barriers and enhance understanding of products through interactive visual displays​

Challenges:

• High Costs and Technical Complexity: The initial setup and ongoing maintenance of AR can be costly and technically complex, which might be a barrier for smaller sellers or those new to the technology.
• Privacy and Data Security: With the increased use of AR apps that integrate deeply with users’ personal devices and spaces, sellers must navigate the complex waters of consumer data privacy and security​
• Keeping Pace with Technology: AR technology is rapidly evolving, and staying current with the latest developments can be challenging. Sellers will need to continually update and possibly overhaul their AR features to keep them effective and engaging​

Conclusion: Should You Bring Augmented Reality to Your eCommerce Store?

Virtual and augmented reality in eCommerce make shopping fun. Leading eCommerce brands have led the charge, increasing brand loyalty, engagement, and more, all the while reducing returns. Customers make informed decisions in what feels like an augmented reality game – kind of like that dress-up game your daughter plays on her tablet, or a cute interior design game you play to destress – but this time, you get the product delivered to your doorstep.

Looking Ahead: The future of AR in eCommerce looks promising with broader adoption and integration expected across various sectors. Sellers should consider AR not just as a tool for enhancing individual listings but as a strategic component of their global e-commerce strategy.

Stay Updated with YLT Translations: For Amazon sellers looking to navigate these advancements, staying informed is key. Follow YLT Translations for the latest news, tips, and hacks on successful eCommerce selling. We’re here to help you understand and implement the latest technologies to grow and scale your business effectively in the ever-evolving digital marketplace!

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