Augmented & virtual reality in e-commerce

Over the past decades, e-commerce has changed the retail landscape and seriously influenced lives. Under the current uncertain economic circumstances caused by Covid-19, its growth and penetration into everyday life will increase. Although e-commerce is constantly evolving, it cannot deliver a shopping experience equivalent to brick-and-mortar. The integration of 3D product visualizations via augmented reality (AR) and virtual reality (VR) can convey a more authentic, interactive and sensory-stimulating e-commerce experience. Through a 3x2 experimental between-respondent design, which was manipulated for the visualization and product type and controlled for age and gender, this study tested the capability of AR and VR 3D product visualizations to deliver a more engaging e-commerce expe-rience compared to the widely used 2D product images. Results show that 2D product images offered the most engag-ing e-commerce experience. However, when comparing AR and VR, irrespective of the product the e-commerce experi-ence was better with AR than VR, especially for the older generation. Lastly, this study examined that neither AR nor VR is better suited for a particular product type. These findings illustrate that sticking to 2D product images would not harm a company’s e-commerce performance. To outperform the competition, AR is essential when centered on delivering a ‘one-of-a-kind shopping experience’.