Augmented Reality (AR) and Virtual Reality (VR)

Despite AR and VR's capabilities for the e-commerce industry, not many online sellers have adopted these technologies. Over time it will make sense for retailers to employ this transformative technology as it can provide shoppers with an immersive “try before you buy” shopping experience.

Instead of relying solely on images or videos, sophisticated AR and VR tools can overlay virtual versions of products into the shopper’s real-world environment. This application is ideal for big and bulky items like indoor and outdoor furniture, where its utility could greatly increase customer purchase satisfaction and reduce the number of logistically complicated and expensive returns. IKEA was one of the pioneering companies in this area, creating a high-definition interactive showroom over six years ago:

https://www.youtube.com/watch?v=Zd7ZWgVqslo

For smaller personal items like eyeglasses, makeup, and clothing for example, consumers use this technology to try on products virtually, mimicking in-person experiences at brick-and-mortar stores. This technology will ultimately help bridge the gap between online and offline shopping by providing a more accurate representation of products, leading to increased confidence in online purchasing decisions.

Direct-to-Consumer Selling

With the proliferation of e-commerce platforms like Etsy, eBay, and Amazon, niche marketplaces catering to specific industries or interests have emerged. In addition to third-party sites, sellers can also reach consumers directly through their own websites and social media channels. This has led to the rise of many more direct-to-consumer (D2C) brands, bypassing traditional retail outlets to sell products directly to consumers by offering unique or specialized goods online.

This form of selling has gained in popularity for several reasons. D2C brands have much greater control over how their products are presented, marketed, and sold, and by eliminating intermediaries, they can offer their products at a lower price point while still making higher profit margins.

Direct sales can also provide brands with valuable customer data and insights, which can be used to personalize marketing efforts, improve their products, and enhance customer satisfaction. This allows brands greater flexibility to experiment with new products, and marketing strategies so they can adapt quickly to changing consumer preferences and market trends.

Popular examples of D2C brands include Warby Parker (eyewear), Chewy (pet products), Allbirds (footwear), Casper (mattresses), and Dollar Shave Club. There’s no limit to the types of products that can take advantage of this business model from fashion and beauty to consumer electronics to household goods.

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