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How Visual Commerce Boosts Conversions

From Browsers To Buyers

Discover how 3D and AR technologies are revolutionizing e-commerce, and boosting conversions and sales by enhancing customer experiences. Learn the untapped strategies for leveraging these innovations to stay ahead in 2024.

Anusha.K (Co founder Renderease)

  • 8 min read
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Key Takeaways

  • Visual Commerce:Enhances online shopping with technologies like 3D models and AR, making products more tangible and boosting customer confidence.
  • Global E-Commerce Growth: Markets in India, the US, Europe, and Asia are rapidly expanding, with significant growth projected in the coming years.
  • Evolution of E-Commerce: The shift from static images to immersive experiences, accelerated by the pandemic, has transformed online shopping.
  • Impact on Conversions: 3D and AR increase conversions by creating a sense of ownership, enabling virtual try-ons, and driving impulse buys through emotional engagement.
  • Sales Boost: Visual Commerce helps with upselling and cross-selling, increasing order value and reducing returns by offering personalized, interactive experiences.
  • Implementation for SMEs: 3D and AR are more accessible than ever, with affordable solutions for small businesses.
  • Future Trends: The metaverse, AI-driven personalization, and sustainability are shaping the future of e-commerce, with global adoption on the rise.

What is Visual Commerce?

Visual commerce is an e-commerce marketing strategy that uses technology to enhance the shopping experience and attract customers. It involves using visual content, such as high-quality photos, 360-degree visuals, 3D models, Virtual Reality, and augmented reality (AR), to create more realistic product previews. These previews can help customers visualize products from different angles and build confidence to buy.

What does e-commerce play look like in 2024?

In India, a thousand mobile phones are sold every minute, seven t-shirts, three sarees and four pairs of Footwear are sold every second. $5 billion worth of e-commerce sales in nearly 18 million Shoppers across all platforms if we see the size of the Indian e-commerce Market today it stands at $12.93 billion and it is expected to grow to $299 billion in the next 5 years that’s a staggering jump of 164%

 

In the US e-commerce market is expected to grow 8.8%, with sales reaching $1.26 trillion and accounting for 16.6% of total retail sales

 

Europe’s e-commerce revenue is projected to reach $632.7 billion, with an annual growth rate of 9.09% from 2024–2029. This would lead to a projected market volume of $977.4 billion by 2029. Europe is the third-largest e-commerce market in the world.

 

Asia’s e-commerce market is expected to be worth US$1,972 billion in 2024, with China generating the majority of revenue at US$1,469 billion. The market is predicted to grow at a 9.8% CAGR until 2029, reaching a potential value of US$3,147 billion.

The Evolution of E-Commerce: From Static Images to Immersive Experiences

From Static Images to Immersive Experiences

Timeline of Immersive Visual Experiences

Driving Conversions: The Psychological Impact of 3D and AR

When it comes to online shopping, customers often face uncertainty—especially when they can’t physically interact with products. This hesitation is a significant barrier to conversions, but 3D and AR technologies are here to change that! By allowing customers to visualize products in a real-world context, these technologies tap into powerful psychological triggers that can significantly boost conversions.

  • Creating a Sense of Ownership: One of the most profound psychological impacts of AR is its ability to create a sense of ownership before purchase. When customers can virtually try on a piece of jewelry or see how furniture looks in their living room, they start to imagine the product as theirs. This visualization reduces the perceived risk of buying online, leading to a higher likelihood of purchase. Studies have shown that AR experiences can increase conversion rates by up to 40% compared to non-AR experiences.
  • Building Confidence with Virtual Try-Ons: Virtual try-on tools powered by 3D and AR enable customers to see exactly how a product fits or looks on it. Whether it’s a pair of glasses, a watch, or even makeup, this feature eliminates much of the guesswork associated with online shopping. For instance, cosmetics giant Sephora has seen a significant increase in conversions thanks to its AR-powered Virtual Artist tool, which allows customers to try different makeup products digitally. This level of personalization not only increases confidence but also reduces the likelihood of returns.
  • Emotional Connection and Impulse Buying: AR and 3D technology can create a more immersive and emotionally engaging shopping experience. When customers interact with a product in a way that feels almost physical, it triggers an emotional response, making them more likely to buy on impulse. This is especially effective for products that customers might not have planned to purchase but are tempted by when they see them in action.
  • FOMO (Fear of Missing Out): Lastly, Visual Commerce experiences often create a sense of exclusivity. When customers see how a limited edition item or a seasonal product looks in their environment, it triggers FOMO—making them more likely to complete the purchase to avoid missing out. This psychological trigger is a subtle yet powerful driver of conversions.

What are conversions in e-commerce?

In e-commerce, a conversion can refer to a purchase—or to any number of smaller steps a customer takes toward that purchase. A purchase is a macro-conversion, the desired end goal.

Boosting Sales: 3D and AR as Tools for Upselling and Cross-Selling

3D and AR as Tools for Upselling and Cross-Selling

Beyond driving initial conversions, 3D and AR technologies are also powerful tools for increasing the average order value (AOV) through upselling and cross-selling.

  • Real-Time Product Pairing: Imagine a customer virtually placing a sofa in their living room using AR. Now, picture the app suggesting matching throw pillows, a coffee table, or even wall art that complements the sofa’s design – all in real time. This is the magic of AR-driven upselling! By presenting complementary products in a visually cohesive way, customers are more likely to add these extras to their cart. According to research, personalized upselling can increase AOV by as much as 10-30%.
  • 3D Configurators and Customization: 3D configurators allow customers to personalize and build their products before purchasing. For example, car manufacturers have used 3D configurators for years to let customers choose colours, trims, and additional features for their vehicles. This customization not only enhances customer satisfaction but also encourages them to spend more. Businesses that offer product customization see a 20% higher conversion rate on average.
  • Reducing Return Rates with AR: One of the hidden benefits of AR is its ability to reduce return rates. When customers have a clearer idea of what they’re purchasing, they’re less likely to return the product. For example, Visual Commerce technology has helped home decor retailers reduce return rates by as much as 40%. Fewer returns not only improve customer satisfaction but also boost overall sales by minimizing the losses associated with returns.
  • Post-Purchase Upselling Opportunities: Visual Commerce doesn’t stop being useful after the purchase is made. Post-purchase, AR can suggest additional products that complement the customer’s purchase. For instance, if a customer buys a camera, the app might use AR to show them how a specific lens or accessory can enhance their photography. This post-purchase upsell can lead to repeat business and increased customer loyalty.

Overcoming Implementation Challenges: Making 3D and AR Work for Your Business

Making 3D and AR Work for Your Business

While the benefits of 3D and AR are clear, many businesses—especially small to medium enterprises (SMEs)—worry about the costs and technical challenges of implementing these technologies. The good news? It’s more accessible and democratised than ever!

  • Understanding the Technical Requirements: : Implementing 3D and AR in your e-commerce platform does require some technical know-how. This typically includes integrating AR software, creating 3D models of your products, and ensuring that your website or app can handle the interactive content without slowing down. However, thanks to advancements in technology, there are now platforms and tools specifically designed to simplify this process. Shopify, for example, offers built-in AR and visual commerce plugins in its store that make it easier for merchants to start without needing a team of developers.’
  • Cost Considerations for SMEs: One of the biggest concerns for small businesses is the cost of implementing 3D and AR. While it’s true that developing custom AR experiences can be expensive, there are more affordable options available. Many Visual Commerce platforms offer subscription-based models, allowing businesses to pay a manageable monthly fee rather than a large upfront cost. Additionally, some companies provide pre-built 3D models that can be customized, reducing the time and expense of creating everything from scratch.
  • Success Stories from Small Businesses: Take the example of a small online boutique that decided to integrate AR for its jewelry line. Using an affordable Visual Commerce platform, they allowed customers to try on rings and necklaces virtually. Within a few months, they saw a 35% increase in conversions and a significant decrease in returns. This shows that even with limited resources, businesses can leverage 3D and AR to achieve remarkable results.
  • User Education and Ease of Use: Another crucial aspect of successfully implementing Visual Commerce is ensuring that your customers know how to use it. A seamless, user-friendly experience is essential. Providing tutorials, clear instructions, and customer support can help bridge the gap for those who might be unfamiliar with this technology. The easier it is for customers to use these features, the more likely they are to engage with them and convert.

Future Trends: What’s Next for 3D and AR in E-Commerce?

What’s Next for 3D and AR in E-Commerce?

So, what’s next? Let’s explore some of the future trends that are set to revolutionize online shopping even further.

  • The Metaverse and Virtual Shopping: As the concept of the metaverse continues to grow, we can expect to see a significant shift in how e-commerce operates. Imagine walking through a virtual shopping mall, interacting with 3D avatars of sales assistants, and trying on clothes in a virtual fitting room—all without leaving your home. Brands are already experimenting with virtual stores in the metaverse, offering a completely immersive shopping experience that could redefine e-commerce.
  • AI-Enhanced AR Experiences: Artificial Intelligence (AI) is set to make AR even more powerful. AI can analyze customer preferences and behaviours to deliver hyper-personalized AR experiences. For example, AI-driven AR might suggest products based on past purchases or even analyze a customer’s body shape to recommend clothing that will fit perfectly. This level of personalization is expected to drive conversions and customer satisfaction to new heights.
  • Privacy and Ethical Considerations: As visual commerce becomes more prevalent, privacy concerns are likely to grow. AR both web-based and mobile apps often require access to a user’s camera and location, raising questions about data security. Brands will need to prioritize transparency and ethical considerations to build trust with their customers. This might include clear privacy policies, opt-in features, and secure data handling practices.
  • Sustainability: Another trend to watch is the role of Visual Commerce in promoting sustainability. AR can reduce the need for physical samples, prototypes, and return rates, lowering waste and environmental impact. Nearly 1 in 3 consumers have stopped purchasing a brand or product due to sustainability concerns, a brand’s credentials in this space now have a direct impact on the bottom line. 
  • Global Adoption and Market Expansion: Finally, as the technology becomes more accessible and affordable, we can expect global adoption of 3D and AR in individual e-commerce brands not just the big ones like Amazon, eBay, and the rest. Emerging markets with growing internet penetration will increasingly embrace these technologies, leading to a more connected and interactive global e-commerce landscape.
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