AR/VR: Which is winning in the commerce reality ecosystem?

Technology continues to transform how we shop. And with augmented reality (AR) and virtual reality (VR) being injected more and more into the shopping experience, consumers no longer have to solely rely on flat images or one-size-fits-all reviews. Now, retailers are redefining online shopping, bringing the store to us in ways we’ve never seen before. But while both AR and VR are revolutionizing the eCommerce scene, there’s one clear favorite among shoppers: AR.

If you’re curious about what makes AR so appealing (and why VR, though still valuable, has a harder time keeping up), let’s dive into the reality (and virtual reality!) of shopping in the digital age.

Before we get into the juicy details, let’s clarify the basics. Both AR and VR create unique shopping experiences, but they’re not the same.

• AR overlays digital information — like images, animations or 3D models — onto your physical world through your phone or tablet. Imagine holding up your phone to your living room and visualizing a couch in real-time, or even trying on makeup from the comfort of your sofa.

• VR, on the other hand, takes you into a fully immersive digital world, usually with a VR headset. Think of VR as putting you in a digital store, where you’re cut off from the physical world and surrounded by a fully simulated environment.

The key difference? AR enhances reality; VR replaces it. And while VR can be incredible, it requires more specialized equipment (like headsets), which often makes it less accessible for casual online shoppers.

So, why is AR leading the pack in eCommerce? Simply put, AR can be more convenient, versatile and, most importantly, delivers what shoppers want. 

Here are some 2024 stats that highlight AR’s growing influence in online retail:

• 84% of consumers believe AR enhances their shopping experience, especially for visualizing products before buying.

• 56% of shoppers say AR features give them confidence in making purchase decisions, reducing the chances of return.

• By 2025, 1.4 billion people are expected to use AR regularly, thanks to its integration with apps like Instagram, Snapchat and even Google.

As AR’s popularity soars, retailers are getting creative. Take Ulta Beauty, for example. The beauty retailer integrated AR through its GLAMlab tool, which allows users to virtually try on makeup and see how different shades and styles look on their faces — all from their phones. This tech has boosted customer confidence and lowered return rates, making Ulta Beauty a leader in AR-driven beauty eCommerce.

The beauty of AR is that it solves one of the biggest eCommerce challenges: How do I know this will work for me?

With AR, customers can:

These features help bridge the gap between online and in-store shopping, giving customers the confidence to hit “Buy Now” instead of wondering if a product will be the right fit.

And for retailers, AR doesn’t just boost engagement — it also reduces returns. For instance, a survey found that AR reduces returns by up to 25% by helping customers make more informed decisions. With fewer returns, businesses sa​ve on shipping costs and improve their overall customer satisfaction.

More retailers are turning to AR to provide shoppers with unique, hands-on experiences online. Here’s a look at some other brands successfully using AR to drive sales, reduce returns and make shopping more interactive.

Home Depot’s Project Color App

Home Depot's Project Color App uses AR to help customers visualize paint colors on their walls before making a purchase. The app allows users to “paint” walls through their phone cameras, factoring in lighting and shadows to provide an accurate representation. This tool empowers shoppers to make informed decisions, which reduces the likelihood of returns and increases satisfaction with their purchases.

Nike’s AR Shoe Fit

Nike took the guesswork out of shoe shopping with Nike Fit, an AR-driven tool that measures the user’s foot size through their smartphone camera. This tool has improved accuracy in shoe size selection, cutting down on returns and giving customers more confidence in purchasing the right fit without trying it on in-store.

Warby Parker’s Virtual Try-On 

Warby Parker has developed a Virtual Try-On feature within its app. Using AR, customers can see how different frames look on their faces in real-time, letting them shop confidently online. This feature has become a critical element of Warby Parker’s eCommerce strategy, especially as more consumers gravitate toward online shopping.

Now, VR isn’t without its perks. Many brands use VR effectively to create immersive experiences that go beyond shopping. Imagine a virtual showroom for a luxury car brand, where users can “sit” inside a car and explore its features without visiting a dealership.

However, VR has its limitations when it comes to everyday shopping:

• Equipment is costly: VR requires specialized gear, like headsets, which aren’t as widely accessible.

• Limited interactivity with the real world: VR doesn’t show how products look in your space, which is key for items like furniture or decor.

• It’s not ideal for “try before you buy”: While VR can create engaging simulations, it’s not as practical for people wanting to see how a product fits in their real-life environment.

Despite these limitations, VR does have a significant presence in retail, with notable brands leveraging it in unique ways. In fact, 2024 saw a 91% increase in retailers experimenting with VR for in-store simulations and branded experiences, especially for high-cost products like cars, luxury goods and real estate.

For luxury and experiential products, VR offers a unique selling point — customers can interact with products in ways that traditional online shopping doesn’t allow. However, VR’s reliance on headsets means that it’s still a niche tool in eCommerce, best suited for high-impact, immersive experiences rather than day-to-day shopping.

IKEA Virtual Reality Kitchen

IKEA offers a VR kitchen experience that lets users design and explore virtual kitchens, enabling them to try different layouts and styles before making a commitment. This “try-before-you-buy” experience helps customers gain confidence in their purchase decisions, especially for big-ticket items.

Audi VR Showrooms

Audi’s VR experience takes potential car buyers on a tour of their dream car. With a VR headset, customers can explore car interiors, check out customization options and even “drive” on a virtual road — all from the showroom. This interactive experience is designed to bring Audi’s products to life in a way that traditional in-store experiences can’t.

Alibaba’s Buy+ VR 

Alibaba’s Buy+ VR experience allows shoppers to “walk” through a virtual mall from their homes. Launched as an experimental feature, it offers an immersive shopping experience where users can browse products, see 360-degree views and make purchases with simple hand gestures.

What’s next for AR and VR in eCommerce? Experts predict that AR will continue to lead, thanks to its accessibility and versatility, while VR will remain a niche tool for immersive brand experiences.

As technology advances, we can expect even more personalized and interactive AR features. Think of an app that tailors its product suggestions based on your tastes or AR filters that adapt to different lighting to show how products look in real-world conditions. VR, meanwhile, is likely to evolve within industries that benefit from complete immersion, like travel or education. But for most online shopping, it’s AR’s time to shine.

Discover more about what’s next in commerce and how you can get in on the action by visiting eCommerce Trends & Innovations.