Augmented Reality (AR) & Virtual Reality (VR) in eCommerce

AR & VR in eCommerce: Benefits, Trends, and Implementation

eCommerce has continuously evolved to meet ever-changing consumer demands. In a world where online competition is fierce, businesses are turning to innovative technologies to captivate customers. One of the most groundbreaking advancements transforming eCommerce is the integration of virtual reality (VR) and augmented reality (AR), revolutionising the online shopping experience. With the power to bring products to life and create immersive, personalised journeys, AR and VR are closing the gap between physical and digital shopping like never before.

Continue reading to discover more about customer experience trends in Australia, how to optimise your online store, and how to improve your eCommerce strategy with AR, VR and how to improve your SEO standings.

What exactly are AR and VR, and what is the difference between the two?

Augmented reality and virtual reality are both transformative technologies that revolutionise how consumers interact with online retailers.

While both enhance the shopping experience, they serve different purposes and offer unique opportunities in eCommerce:

• AR — Augmented reality enhances the real world by overlaying digital elements onto physical spaces using devices like smartphones, tablets, or AR glasses. AR enhances online shopping with virtual try-ons, furniture visualisation, and interactive product previews, allowing shoppers to see items in their own environment.
• VR — Virtual reality creates a fully immersive digital environment that replaces the real world, accessed through VR headsets. VR immerses customers in 3D-rendered stores and showrooms, offering a lifelike shopping experience.

By appropriately integrating AR and VR solutions, businesses can merge digital innovation with consumer convenience, redefining engagement and conversion in the evolving eCommerce landscape.

Understanding the Differences Between Augmented Reality (AR) and Virtual Reality (VR)

In Australia, the adoption of immersive technologies like Augmented Reality (AR) and Virtual Reality (VR) is growing rapidly across industries such as retail, education, real estate, and entertainment. While both AR and VR enhance digital experiences, they operate in distinct ways and serve different purposes.

What Is Augmented Reality (AR)?

Augmented Reality overlays digital elements—such as images, sounds, and interactive features—onto the real-world environment through devices like smartphones, tablets, or AR glasses. Unlike VR, AR does not replace reality but enhances it by blending virtual content with physical surroundings.

Examples of AR in Australia:

• Retail & E-Commerce: Many Australian retailers now use AR for virtual try-ons, allowing customers to see how clothing, accessories, or even home décor items would look in their own space.
• Real Estate & Architecture: AR enables homebuyers to visualise property modifications or stage homes digitally before purchase.
• Education & Training: Schools and universities use AR applications to provide interactive learning experiences, such as anatomy lessons where students can explore 3D models of the human body.

What Is Virtual Reality (VR)?

Virtual Reality immerses users in a fully digital environment, completely separate from the physical world. By wearing a VR headset, users enter a computer-generated space where they can interact with objects, move around, and experience simulated realities.

Examples of VR in Australia:

• Gaming & Entertainment: VR gaming has gained popularity in Australia, with venues like VR escape rooms and interactive experiences becoming mainstream.
• Workplace Training: Industries such as construction, healthcare, and aviation use VR simulations to train professionals in high-risk environments without real-world dangers.
• Tourism & Travel: Australian tourism operators are using VR to offer virtual experiences of attractions, helping travellers preview destinations before booking.

Key Differences Between Augmented Reality and Virtual Reality

Which One Is Better for Businesses?

Both AR and VR offer unique opportunities for Australian businesses. AR is particularly useful for retail, education, and real estate, where enhancing the real-world experience is valuable. VR, on the other hand, is powerful for training, tourism, and high-immersion gaming. The best choice depends on your industry and how you want to engage your audience.

With Australia’s growing investment in digital innovation, AR and VR technologies are set to become even more integrated into everyday business strategies. Whether you’re looking to enhance customer engagement, improve training processes, or create immersive content, choosing the right technology will give you a competitive edge in the evolving digital landscape.

How do augmented reality and virtual reality work in eCommerce?

Both augmented reality and virtual reality in eCommerce rely on advanced tools to transform the online shopping journey into an engaging, interactive experience tailored to modern consumer needs.

Augmented Reality vs Virtual Reality in eCommerce

Augmented reality shopping

AR technology brings products into the shopper’s environment in a dynamic way:

• Virtual try-ons: Clothing and cosmetics retailers use AR to allow customers to try on outfits or makeup shades in real-time.
• Product previews: Home furnishing brands offer apps that let shoppers place augmented reality products, such as sofas or lamps, into their rooms to assess size and style compatibility.

Virtual reality shopping

VR creates immersive retail experiences that go beyond what traditional eCommerce offers:

• Virtual showrooms: Shoppers can explore virtual reality products in immersive 3D environments, replicating the feel of a physical store.
• Simulated interactions: VR allows customers to test products like vehicles, outdoor equipment, or real estate properties in virtual settings.

Why and How Augmented Reality & Virtual Reality are Transforming eCommerce

The fusion of AR and VR with eCommerce marks a revolutionary shift in how people shop online. This evolution from beginning until now isn’t just a technological novelty — it’s a response to consumer behaviours and a glimpse into the future of retail.

Meeting consumer expectations and addressing pain points

There’s an increasing demand for creating interactive and personalised experiences. Traditional online shopping often lacks the sensory and immersive qualities of physical stores, leading to challenges in customer satisfaction. AR and VR bridge this gap by offering dynamic, tailored solutions that elevate the online shopping journey.

Especially pos-pandemic, many shoppers expect brands to provide tools like augmented reality shopping apps or virtual reality shopping environments that allow them to interact with products in meaningful ways before making a purchase. Here’s how AR and VR directly tackle persistent challenges in online shopping:

• Uncertainty around product fit and quality: AR lets customers see how furniture or clothing fits their space or body, while VR enables immersive product interactions, like testing a car’s interior or touring a virtual property.
• Reduced return rates: By providing a more accurate representation of products, these technologies minimise buyers’ remorse and the need for returns, saving businesses time and money.
• Improved decision-making: Consumers can make more informed purchases with access to realistic product previews and interactive experiences.

Industry Growth

The adoption of virtual reality and augmented reality in eCommerce continues to accelerate, reshaping how consumers interact with online retailers. According to recent market reports:

Augmented Reality Market Overview

• The augmented reality market is projected to grow from $50.25 billion in 2024 to $570.79 billion by 2032, with a compound annual growth rate (CAGR) of 35.49% during the forecast period. This surge is driven by increasing adoption across industries like retail, healthcare, and entertainment.
• The virtual reality (VR) market is expected to expand and reach $113.66 billion by 2032, growing at a 27.5% CAGR from 2023 to 2030. Key drivers include advancements in immersive technologies and growing consumer interest in virtual experiences.

This growth is fuelled by the increasing accessibility of AR and VR tools, coupled with rising consumer trust and demand for personalised, interactive shopping experiences.

A Rundown of the Benefits of Augmented Reality & Virtual Reality in eCommerce

1. Enhanced user experience

AR and VR elevate the online shopping journey by providing interactive product visualisation and immersive experiences:

• Augmented reality products allow users to see items like furniture, clothing, or accessories in their environment, offering a realistic understanding of fit and style.
• Virtual try-before-you-buy options enable customers to explore products in lifelike settings, ensuring they meet expectations.

2. Increased engagement and conversion rates

Brands that adopt AR and VR see notable increases in customer engagement and sales. Renowned companies like Sephora use AR for virtual try-ons, and even IKEA employs VR and AR in their eCommerce strategy to visualise furniture, significantly boosting customer interaction. These technologies also help reduce cart abandonment rates by addressing common concerns like product suitability and quality.

3. Personalisation

AR and VR empower businesses to deliver hyper-personalised experiences. For example:

• AR-powered recommendations suggest products based on individual preferences, such as size, style or colour.
• VR environments can be tailored to each customer, creating personalised spaces for exploring items tailored to their unique tastes and needs.

4. Brand differentiation

In a saturated market, AR and VR help brands stand out. In fact, companies that integrate these technologies showcase innovation and a commitment to enhancing the customer experience. Other leading brands like Nike and Warby Parker are leveraging AR and VR to strengthen their market position and connect with tech-savvy consumers. By embracing AR and VR, eCommerce brands meet evolving consumer expectations and gain a competitive advantage, setting themselves apart as leaders in their industries.

How to Implement AR and VR in your eCommerce Strategy

Integrating augmented reality and virtual reality into your eCommerce strategy is a worthwhile investment for many businesses, but only when it’s done right. Successful implementation requires thoughtful planning and execution. Here’s how you can get started:

1. Selecting the right AR/VR technology

The foundation of an effective AR or VR strategy lies in selecting the right tools and platforms. Consider these factors when choosing solutions:

• Industry-specific needs — Tailor AR/VR applications to your business model. For example:
  • Fashion brands can adopt tools like Perfect Corp or ModiFace for virtual try-ons, allowing customers to see how makeup, glasses, or clothing looks on them before purchase.
  • Real estate companies can use VR platforms like Matterport to offer virtual property tours, enabling clients to explore homes remotely in stunning detail.
  • Brands like IKEA use AR apps like IKEA Place to let customers visualise furniture in their homes, ensuring the right fit and style before purchasing.
• Device compatibility — Ensure your chosen technology is compatible with widely used devices. For instance, Sephora’s Virtual Artist AR tool is accessible directly on smartphones, making it easy for customers to engage without extra hardware.
• Scalability — Choose solutions that can grow with your business. For example, VR platforms that support expanding product catalogues or AR tools that allow for customisable branding can help as your company evolves.

2. Focus on User Experience

A smooth, intuitive experience is critical for engaging customers with AR and VR technologies.

To achieve this, make sure your tools offer the following:

• Seamless integration — Embed AR and VR functionalities directly into your eCommerce platform or app. For example, Warby Parker’s AR-powered eyewear try-on is integrated into their app, enabling a hassle-free experience for users.
• Intuitive interfaces — Design user-friendly tools that require minimal technical knowledge. For instance, L’Oréal’s AR-powered makeup try-on tool is simple to use, allowing customers to instantly visualise products on their faces with a few clicks.
• Mobile optimisation — Ensure AR tools work seamlessly on mobile devices, as most customers shop on their phones. Zillow’s 3D Home Tours are an excellent example of a mobile-optimised VR experience that runs smoothly without lags.

3. Leverage Data

Analytics are essential for refining and improving your AR and VR initiatives.

Here’s how:

• Track customer behaviour — Use analytics to understand how customers interact with your tools. For example, a company like Sephora can monitor engagement metrics with their Virtual Artist to identify popular products and features.
• Optimise performance — Regularly analyse user data to refine your AR/VR experiences. For instance, A/B test product placements in AR previews or interaction flows in VR environments to determine what resonates most with customers.
• Personalise experiences — Use data insights to create tailored AR/VR interactions. For example, a furniture retailer might recommend sofas that complement a customer’s previous AR visualisations, while a VR showroom could showcase products aligned with user preferences.

4. Collaborate with Experts

Partnering with professionals can streamline the process and maximise results.

Working with an online digital marketing agency provides:

• Strategic guidance — Experts can align AR and VR solutions with your specific business goals. OMG can help an apparel brand maximise an AR virtual try-on feature by providing recommendations on how to integrate it seamlessly into their eCommerce platform and optimising its functionality for mobile users.
• Ongoing optimisation — Agencies like OMG can leverage analytics to continuously refine your AR/VR offerings and enhance customer satisfaction. For instance, by using SEO best practices and user behaviour insights, experts can help your AR/VR tools rank higher in search results, driving more visibility and engagement.

Future Trends in AR and VR for eCommerce

The future of virtual reality and augmented reality in eCommerce is brimming with possibilities, driven by emerging technologies and innovative platforms. Here are the trends shaping what’s next:

Emerging Technologies: AI Integration with Augmented Reality & Virtual Reality

The integration of artificial intelligence (AI) is creating even more dynamic and responsive shopping experiences:

• AI-powered personalisation — Analyse customer preferences to offer tailored augmented reality eCommerce solutions, such as recommending complementary products through AR visualisations.
• Interactive VR assistants — AI chatbots within virtual reality eCommerce platforms guide customers through immersive environments, offering real-time suggestions and personalised recommendations.
• Real-time AR enhancements — AI-driven visuals adapt to individual user inputs, making augmented reality eCommerce experiences more intuitive and accurate.

The Potential of Web3 and the Metaverse in eCommerce

Web3 and the metaverse are reshaping eCommerce by creating virtual ecosystems that merge social interaction with shopping:

• Decentralised commerce — Blockchain technology supports secure transactions within virtual reality eCommerce environments, such as virtual malls or marketplaces.
• Virtual flagship stores — Brands can establish metaverse-based stores that replicate or expand upon real-world shopping experiences, enhancing augmented reality eCommerce offerings.
• NFT integration — Digital assets like NFTs provide unique, collectible items that can be displayed in VR environments, further enriching virtual reality eCommerce experiences.
• Seamless multi-platform engagement — The metaverse allows users to move between activities like shopping, gaming and socialising without leaving the virtual space.

By addressing current challenges and preparing for these future trends, businesses can harness the full potential of virtual reality and augmented reality in eCommerce, staying ahead in the competitive digital landscape.

Create a more effective eCommerce strategy with Online Marketing Gurus

Ready to elevate your augmented reality and virtual reality eCommerce strategies? Online Marketing Gurus delivers cutting-edge digital marketing solutions that drive engagement and boost conversions to help position your brand as an industry leader.

From integrating cutting-edge AR and VR tools to optimising your site for search engines, our team helps you craft a seamless, data-driven eCommerce experience. Learn more about how Search Engine Optimisation / SEO services can support your journey to online success.

Learn more:

Expand your knowledge and refine your digital marketing strategy by checking out these resources:

• Discover how Google Display Network can amplify your brand’s reach and engagement.
• Explore our guide to SEO product descriptions to ensure your listings are optimised for search and user-friendliness.

Start today—Take your eCommerce business to the next level with insights and expertise from OMG – Australia’s top and most trusted SEO agency.

About the Author

Jazmin Green

Jazmin Green, as Head of Enterprise SEO at OMG, leads high-impact SEO strategies for large-scale clients, focusing on technical SEO, content strategies, and long-term digital growth. Her work includes pioneering enterprise-level solutions that address the unique challenges of larger organisations, aiming to drive sustainable visibility and customer engagement.