E-commerce

To stem tide of e-commerce returns retailers need 3D, AR

Rob Weaver, chief revenue officer for Vertebrae, offers insight on why more retailers than ever are turning to immersive commerce experiences that use augmented reality and 3D to enhance online offerings and how the technologies have a much broader impact on business outcomes.

Photo by istock.com

November 5, 2020 by Rob Weaver

Returns have long dampened retailers' profit margins, and in the e-commerce era, the trickle of reversed transactions has become a flood.

But merchants can turn the online medium to their advantage by using innovations in 3D and augmented reality to address the cause of returns and stem the costly tide.

Refunded transaction fees, lost income, unusable returned merchandise, and processing costs add up to a returns toll of more than $300 billion, or roughly 8% of total U.S. retail receipts. Forecasters predict an even greater surge of returns in the wake of the global pandemic: to accommodate store closures and reopenings, some retailers are temporarily lengthening the returns window, while the exponential growth in online shopping brings with it an exponentially-higher return rate — anywhere from 15 to 30% as of January.

To counteract rising return rates, some retailers have tried to "meter" the number of orders customers can send back. After all, some 20% of online returns are due to shoppers having ordered multiple sizes of the same item to try on at home, fully intending to return the rejects.

But retailers would do better to address the cause of this customer practice: the inability to size, hold, and buy items prior to purchase. A recent Vertebrae consumer survey found the inability to physically experience products remains the top barrier to purchasing online, with nearly 6 in 10 respondents concerned about whether items will fit and 58% missing the ability to touch or feel products.

By enabling views of items in detail and real-life context, 3D and AR can address these concerns — and thereby not only convince shoppers to buy, but help them select the right item the first time around.

Addressing questions at key junctures on the path to purchase

Current mobile operating systems, social media platforms, and Web browsers support integrated AR and 3D imagery — which means shoppers don't need to interrupt product consideration and research to download an app before using immersive tools. Using modern design techniques, product pages can display 3D and AR assets according to individual shoppers' device types and screen sizes, giving consumers every possible opportunity to view items in context and select the appropriate size or style for their needs.

Providing accurate size and scale for virtual try-on

Not only can modern smartphones and Web browser support seamless viewing of 3D and AR assets, but those with a front-facing depth camera (like iPhones released in the last three years) can see virtual items such as glasses, hats, and handbags dynamically mapped to their individual proportions, for an image that's highly accurate in size and scale — even when they move. Nearly 1 in 4 Vertebrae survey respondents requested this feature to help boost their purchase confidence.

Vertebrae client CADDIS implemented virtual try-on of its eye wear specifically to reduce returns, with co-founder Steve Genzler stating, "Product returns are the Achilles heel for every retailer, and these 3D and AR experiences give shoppers a much better sense of whether the product is right for them, before we ship it out."

Enabling virtual placement in physical worlds

Larger items, from luggage to loungers, can also benefit from AR tools that help shoppers gauge whether the size is right for their real-life surroundings. Using AR, shoppers can virtually place items in their homes or on their patios and even walk around the life-sized images to get a sense of scale and assess whether items fit with the style of the rest of the environment — thereby ensuring there will be no unpleasant surprises when the delivery truck arrives, and preventing the costly process of returning large items.

3D capabilities that allow shoppers to reposition and zoom in on virtual product renderings help them see features they might otherwise miss. They can assess whether electronic equipment has the right ports, luggage closures lock, or hat brims are wide — ensuring that products meet their needs down to the last detail before orders are placed.

AR and 3D are revolutionizing shopping through immersive experiences that provide crucial contextual cues for shoppers. Retailers can use 3D and AR tools to build trust, ensure accurate product evaluations, and encourage purchase of the right items for shoppers' needs — thereby preventing the disappointment — and high costs — of returns.