Technology

Immersive commerce leads retail’s jump to light speed

Rob Weaver, chief revenue officer at Vertebrae, believes brands at the forefront of innovation now will be poised to recover faster in the months to come.

Photo by istock.com

July 10, 2020 by Rob Weaver

After years of steady growth, e-commerce has taken a quantum leap thanks to the coronavirus pandemic — and even as stores begin to reopen, consumers' expectations have changed forever. Retailers who commit now to providing rich, immersive experiences wherever consumers choose to shop will be poised to recover and thrive in the months ahead.

Over the past 25 years, e-commerce's share of retail sales rose steadily by one or two percentage points annually, reaching 16% in 2019. In 2020 so far, by contrast, that percentage has jumped to 25% — one in four of all retail transactions, and an increase of 56% in six short months. In April alone, The Next Web reports, eight in 10 consumers globally searched online for a product or service to buy and 74% bought something online.

This sudden acceleration — essentially achieving 10 years' growth in a matter of months — has put retailers to the test. Leaders have pivoted to boost online offerings and omnichannel fulfillment services such as curbside pickup, and they've evolved shopping experiences to provide the information shoppers need, wherever they choose to shop.

As part of that evolution, sellers are doing everything they can to overcome online shopping's biggest purchase hurdle: the inability to inspect, try, and touch items prior to purchase. Immersive experiences that harness 3D and augmented reality to give shoppers real-world context and close-up detail are quickly emerging as a key asset; Facebook's recent launch of Shops, for example, prominently featured AR enhancements as a selling tool for retailers on the platform.

The impact of implementing 3D and AR can extend well beyond the current crisis mode to reap long-term rewards for retailers. Among them:

Prove that products will meet expectations
As shoppers accustomed to viewing and trying products in person seek out online alternatives, retailers can win new sales with experiences that overcome hesitation about whether products will look, fit, and feel the way they appear online. 3D and AR can reassure new online shoppers and veterans alike that the items arriving on their doorstep will meet their expectations. Thanks to the ability to examine products up-close and accurately gauge size and scale, shoppers can see fine details and ascertain which items meet their needs best.

While online pure-play eBags had no store sales it had to recoup when the pandemic began, it did have an influx of new shoppers, many of whom were interested in packing cubes and pouches for home organization or backpacks for local outings -- and many of whom had never before considered buying such items online. When those shoppers interacted with 3D and AR, they overcame their hesitations, lifting revenue per visit by 87% and boosting mobile conversion 112% compared with those viewing only traditional static images.

"For shoppers used to purchasing in stores, we had to rethink the experience and clear some of those friction points and hurdles that come from not being there in person," said eBags senior vice president of marketing and merchandising Chris Seahorn. "There's a comfort level we knew we needed to provide, and in tandem with our warranties and easy return processes, the life-like product simulations in 3D and AR helped us set shoppers' minds at ease, and we attracted new customers that hadn't bought the products we offer online before."

Give mobile shoppers seamless experiences
3D and AR shopping experiences are designed for interaction on mobile devices, which have seen a spike in usage during shelter-in-place orders. In late April, 76% of consumers reported increasing use of smartphones or mobile phones compared with earlier in the year, according to The Next Web, while 51% said they had bought something online using their phone.

Mobile use isn't likely to taper off as the economy reopens; the pandemic only accelerated a years-long shift to mobile-centric online experiences. Back in the 2019 holiday season, for example, smartphones already accounted for 58% of all retail traffic, and drove 36% of sales, according to Adobe Analytics.

But mobile presents unique shopping constraints, among them inadequate product images that can prevent purchases. Speed and simplicity are of the essence, with Google reporting that even a one-second load time delay impacting mobile conversion by as much as 20%. Lightweight but full-featured 3D and AR tools that are integrated within mobile web experiences can help overcome these hurdles, providing a seamless and detail-rich experience on small screens.

Ride out a wave of returns
With the onset of the pandemic, many retailers temporarily suspended processing returns, while reassuring customers that the clock had been paused and they would still be able to bring items back once the economy reopened. Now, thanks to that pent-up backlog, IHL predicts retailers could see a wave of $200 billion in returns within the first two months of stores reopening, potentially overwhelming reverse logistics operations.

3D and AR can help sellers mitigate this potential spike. By giving shoppers real-life context for their purchases, they can assess whether items will fit and match, and whether products have features compatible with their needs, prior to purchase.

Conclusion
A continuing focus on innovation is essential for retailers, even as stores open their doors again. Immersive commerce experiences that deliver rich product information wherever consumers choose to shop are emerging as must-haves to recover and thrive in the second half of 2020 and beyond.