Introduction
Due to the Covid-19 pandemic over the past few years, the use of AR in the retail sector grew rapidly. It is even estimated that by the year 2025, up to 4.3 billion people would be using AR on a frequent basis. Top reasons cited by more than 40% of global consumers for not shopping online are — not being able to see products in-person and not being able to try things out before making a purchase. With AR and VR, fit uncertainty can be reduced, increasing confidence in purchase by providing a more immersive shopping experience.
Shopify AR
Shopify is an e-commerce platform for online stores and retail point-of-sales systems. It allows retailers to set up online stores and provides many different services and solutions for the convenience of both retailers and consumers. One of the services Shopify provides is Shopify AR, bringing a new dimension to customer service with the Augmented Reality (AR) experience.
Introduced in 2018, Shopify AR allows retailers to create interactive and personal AR experiences for their consumers on iOS devices, where products can be viewed from all angles and scale via the web browser, Safari.
Immersive Shopping Experience
According to a research conducted, the four broad uses of AR technologies utilised in the retail settings – to entertain customers, educate customers, help customers evaluate product fit, and enhance their post-purchase consumption experience. Shopify AR has use cases at every stage of the customer journey that retailers can leverage on.
One of the features is showcasing the product from different angles and scales via any iOS device with a camera and Safari. The consumer would also be able to place the object in their environment using AR technology, to visualise how the product would look and feel like if it were there. This simple feature entertains customers, due to its ability to transform inanimate 2-dimensional objects into 3-dimensional, animated and interactive objects, which creates fresh experiences that entertain and captivates customers. Additionally, by having the physical environment as a background to the virtual products, consumers can visualise how products would appear in their actual environment and context, helping consumers to give a more accurate evaluation about the given product. The brand, Reveba Minkoff also reported that there are 65% more likely to purchase when they utilised this feature on their website.
Shopify AR allows retailers to go beyond showcasing their products and having the consumers place them in their environment. Firstly, Retailers can choose to recreate a traditional retail displayed in the virtual setting. There would be no need to consider the physical restraints of space and inventory, and consumers would be able to explore the virtual space and products from the comforts of their home. Being a rather new technology, engaging AR displays would also be an avenue to enhance marketing campaigns and product launches.
Secondly, retailers can also create their own immersive local AR experience to enhance the shopping experiences of customers. For example, in a collaboration between the Jordan Brand, Snapchat, Shopify, and Darkstore for a pre-release sneaker during the NBA All-Star game in February of 2018, customers invited to the exclusive event were prompted to scan a mobile Snap code that reveals the new sneakers. The sneakers can then be purchased and delivered to them on the same day.
Lastly, the platform can also be utilised to enhance consumers’ post-purchase experience. It can help to put products into context and provide more valuable and personalised information with clear and simple graphics. For instance, after a customer receives a product, an interactive tour can show them how to assemble and install the product they just purchased. In the video above, each part of the installation process is slowly animated to add a new, 3D visual that helps customers better understand the instruction manual included.
If brands and retailers can offer this post-purchase experience, customers could get more immediate and long-term value from the product, which improves their purchase experience and general satisfaction.
Why do you like this XR application?
As an avid online shopper, having the added AR experience would greatly enhance my online shopping experience. On most e-commerce platforms, only 2D pictures are shown, in much better lighting and it would usually be placed in environments that I may not be using them in. Hence, the product images shown may not be an accurate depiction of the product itself. Due to prior experiences of receiving products that are not the same as what was depicted, even with the simplest feature of being able to look at the product from all angles, zooming in to take a look at product texture and details would be of great help. I would also be more likely to make a purchase if I could see how the product would look like where I would like to use them, especially for furniture and larger items.
The feature is also easy to use, as I could easy switch between the AR and object mode with the click of a button. If I need to move the object, all I had to do was pinch it with 2 fingers and I could move it as I desired. The AR mode as shown in the image allows me to imagine the product in my own space and interact with it. If I find that it is a right fit, I would also be more likely to make a purchase, as compared to not having the AR experience. If I like how the product fits in my space, I can also take a picture using the button on the right to save the image.
What features are well done?
In general, Shopify AR has a simple interface and is easy to use. As mentioned earlier, the feature that consumers can use to switch between AR and the object has a simple interface. Both the AR and object functions fits the mental model of how these functions would behave and does not have any other functions that may confuse the user. This makes it intuitive to use, with little to no affordance.
The barrier to entry for retailers to use the simple AR functions are low, as they can easily embed the feature in their own website. Hence, it makes it much easier for smaller scale retailers to integrate simple AR features onto their own websites, without having to invest the time and effort to create their own applications (e.g. Ikea Place).
It is also easy for consumers to use it, since Safari and an iOS device is all that are needed, and additional downloads or installs are not required.
Potential Improvements
While Shopify AR greatly enhances the customer experience, there is still room for improvement.
Firstly, Shopify could try to include beauty categories, providing users with the option to see how they look like in different hair colours, hair styles, makeup and nails.
Secondly, Shopify could also provide templates to lower the barrier to entry for retailers of smaller scale to create their own virtual shops and spaces. I have observed that most retailers that have collaborated with Shopify for virtual or virtual-local experiences are those of larger brands, as they have the resources to create these spaces for their potential consumers. However, smaller retailers tend to not have AR experiences, or simply opt for the simplest features, discounting potential customers of their full immersive shopping experience.
Thirdly, if Shopify AR could to be integrated with e-commerce platforms with large user bases like Shopee and Lazada, it would benefit both sellers and buyers on the platform. The simplest features of Shopify AR would provide consumers with a much better shopping experience, especially for larger items like furniture. This could also potentially reduce the need for customers to return furniture of the wrong size, increasing customer satisfaction.
Lastly, Shopify could extend this feature to non iOS devices and other web browsers. Since 71.8% of mobile phone users use the Android operating system, while only 27% are iOS users. By extending this feature to accommodate Android systems, the Shopify AR user base would rapidly increase, which allows the retailers to reach out to more potential consumers, and consumers would also have a better shopping experience.
Conclusion
The rise of Augmented Reality technology, sped up by the pandemic over the past few years, presents great potential for AR technology to be used in the retail industry. While there is room for improvement, the user experience of Shopify AR has been great in enhancing user’s shopping experience. More research can be conducted to find out more about the impact of AR technology on various aspects of consumer behaviour, to further improve on the usage of AR technology in the retail sector.
References
Augmented reality brings a new dimension of engagement to the customer experience. (2018, November 15). Retrieved January 18, 2023, from https://www.shopify.com/sg/blog/augmented-reality-commerce
Augmented Reality in Retail A Business Perspective. (n.d.). Retrieved January 16, 2023, from https://www.byteplus.com/en/blog/detail/Augmented-Reality-in-Retail-A-Business-Perspective-
K, S. (2020, May 27). Retail in a new dimension. Retrieved January 16, 2023, from https://medium.com/scapic/retail-in-a-new-dimension-503249c4e46e
Laricchia, F. (2023, January 17). Global Mobile OS Market Share 2022. Retrieved January 20, 2023, from https://www.statista.com/statistics/272698/global-market-share-held-by-mobile-operating-systems-since-2009/#:~:text=Android%20maintained%20its%20position%20as,the%20mobile%20operating%20system%20market.
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impact on sales. (2022). Journal of Marketing. 86, (1), 48-66. Research Collection Lee Kong Chian School Of Business.