AR in eCommerce: Application, Benefits, Challenges, and Best Practices

Augmented shopping is powered by AR and 3D technologies. It enables personalized, interactive, and immersive shopping experiences for customers. The global AR and VR market was valued at $32.5 billion in 2023, and this figure is expected to grow at a CAGR of 19% and reach $77.5 billion by 2028. In September 2024, Meta and Snap announced AR smart glasses that indicated the new era of computing technologies. The tendencies prove the popularity of AR among consumers and the consequent revenue increase for those eCommerce businesses that implement AR technologies.

The software experts from PixelPlex have experience in building solutions for retailers, distributors, brand owners, digital marketplaces, etc. Our clients admit to boosting sales conversions due to increased customer satisfaction. We have asked our developers to share their expertise about augmented reality development services they provide and how those services improve business performance.

Understanding the terms

• Augmented reality (AR) tools and technologies overlay digital content onto the real world. In other words, AR helps consumers to imagine the product in a real context, e.g., how a new piece of furniture will match their living room or if a new hairstyle will suit them. To experience AR, customers need only their smartphones or sometimes special glasses.
• Virtual reality (VR) fully replaces the real world instead of just augmenting it. VR requires additional equipment like a headset and controllers, and a person wearing it should be in a safe environment, not to break anything around, like in viral social media videos.
• 3D assets are digital models of products used in AR or VR.

Augmented reality in eCommerce presents opportunities for various types of businesses, especially for those retailers who offer standardized products with wide possibilities for customization. For instance, automotive retailers or furniture manufacturers offer their clients a range of standard products. However, clients may choose a different color or configuration.

Types of AR applications

There are several types of AR technologies. PixelPlex experts in eCommerce development carefully examine our customers’ requirements to tailor services to their needs and business objectives.

Superimposition-based AR: We develop AR apps that overlay 3D models of certain objects onto the real environment. Those models fit the surroundings perfectly. This approach is often used in the retail domain.

Projection-based AR: Our specialists create software that projects interactive digital content onto physical surfaces. Examples are the holograms of objects that users interact with in logistics and manufacturing industries to display information, guide assembly processes, or visualize objects in a physical space.

Location-based AR: PixelPlex developers build apps that use the data from mobile geolocation. Relevant objects augment the real environment. Pokémon Go is an example of this type of AR. Also, such location-based AR models assist tourist apps.

Markerless AR: For this type, developers do not need to set markers to trigger the AR. The underlying algorithms, computer vision technology, and cameras monitor the user’s environment.

Marker-based AR: Such tools detect an object and provide users with information about that object on the screen. An example is reading a QR code with a camera. Also, when an app “sees” a marker, it shows a user a 3D version of the object, allowing for viewing it in detail.

Recognition-based AR: This type of AR is similar to marker-based AR. However, it is a broader term. It includes not only detecting predefined markers but also recognizing real-world objects or images. Computer vision algorithms identify objects, scenes, or patterns (e.g., appliances, furniture, etc.) in the environment and then overlay interactive digital content.

What retailers sell with AR: real case studies

Deloitte once divided augmented shopping experiences into three categories: “Try on” for clothes, accessories, shoes, makeup, and hairstyles, “Try out” for cars, furniture, and home accessories, and “Interact” for electronics. Our PixelPlex experts consider this division to be relevant in 2025 as well.

Furniture

When choosing furniture, people might look for different colors, patterns, and details. Visualizing a new sofa or table in the real environment helps consumers better understand if it fits their entire living space. The absence of the necessity to physically visit a shop adds even more customer satisfaction to the process. For example, the IKEA AR mobile application allows customers to see how IKEA products will fit their homes. Besides, they can take a picture of any piece of furniture they like and then find a similar product in the IKEA catalog.

Shoes

Shoe retailers use the AR possibilities for virtual try-ons and personalization. The virtual try-on blurs the boundaries between online and physical shopping. Personalization includes the possibility for customers to make their shoe pairs exclusive with unique colors, custom slogans, special materials, or removable elements. Adidas uses AR for their sneaker fitting. In 2018, Adidas partnered with Snapchat to create a special lens that allowed for trying on the running shoes.

Makeup

It is difficult to imagine a new look, haircut, or color of lipstick on oneself. AR technologies help customers with that problem. L’Oréal and Sephora were among the first brands in the domain that implemented AR. Sephora gained 8.5 million visits to the AR functionality in the first two years. The augmented reality Sephora mirror simulates cosmetics on a customer’s face. There is no need to physically try cosmetics and experience hygiene risks.

Cars

Car dealers often face limited spaces to display all car models and their configurations. AR eCommerce experience tackles this issue. Audi allows its customers to interact virtually with cars to better understand the functionality. Customers use AR and VR headsets to explore any model in the lineup, interact with the vehicle in three dimensions, and even step inside the cabin virtually.

Clothes

The functionality of augmented reality in eCommerce enables customers to try on clothes and see if they fit them. The Snap company offers its AR enterprise services (ARES) to businesses. With these tools, brands receive more satisfied customers. Snap’s products include the following possibilities: uploading a photo to the app to see how clothes, accessories, or shoes look on you, 3D demonstration of the clothing to view it from different angles, recommendations about the style of clothes depending on person’s body shapes, and an “enterprise manager” tool to help businesses organize and control all their digital product files, such as 3D models and AR experiences, in one place. Snap’s AR enterprise services use such brands as Princess Polly, Gobi Cashmere, American Eagle, Puma, and Zalando.

Where do businesses use AR in eCommerce?

Businesses use AR for eCommerce success. Here is a list of domains where augmented reality provides businesses with plenty of opportunities to improve their performance.

Visualization

AR brings customers a different shopping experience. People visualize how a new product will look in their environment or on them and make a well-thought-out decision. Customers may carefully analyze the product, try it, or customize it if necessary before purchasing. This interactive process reduce uncertainty and dissatisfaction, as customers gain a clearer understanding of whether a piece of clothing will suit them as well as it does a mannequin. As a result, the levels of confidence and satisfaction in their buying choices increase.

Optimization

AR elements can tell a lot about your target market. The way customers interact with AR provides insights about their preferences and shopping patterns. Retailers use this information to optimize product display and improve marketing campaigns. Besides, businesses refine their product lines and attract consumers with better-tailored offerings.

Personalization

Shopping is fun. Engaging customers in virtual experiences while shopping is even more fun. Personified approaches might include special recommendations to consumers that are tailored to their shopping preferences, or personalized vouchers that offer certain bonuses on the basis of demographic profiles or the target audience’s browsing behavior. Such details improve customer satisfaction and stimulate conversions.

Store navigation

Shopping malls and large stores might be confusing for people looking for a particular product. AR allows for overlaying digital markers, arrows, etc., on the screen to help customers find the department they need. Such real-time navigation assistance makes shopping a pleasant and efficient experience. Retailers might further analyze the data from AR apps to better understand shoppers’ behavior and improve targeting.

Marketing

Augmented reality provides marketers with a treasure trove of possibilities to create a viral marketing campaign. Animated products, immersive visuals and graphics, and interactive elements make advertisements memorable and contribute to brand positioning. To name a few renowned examples, Burger King Brazil’s AR campaign made a mark. BK needed to fight their main competitor, McDonald’s, and stimulate in-app purchases. Users of their app filmed any McDonald’s ad (billboards, tray papers, even social media banners) and watched the ad appear to burn away on their screens. This AR effect revealed hidden coupons for free grilled Whoppers, turning competitor ads into Burger King promotions.

Gamification

Retailers use games in the form of quizzes or puzzles to introduce new products or present rewards such as special offers or discounts. Games also help attract customers to the brand. Pizza Hut collaborated with the creative studio Tool in 2021 to create the PAC-MAN AR campaign. Pizza Hut gave its customers special pizza boxes. When consumers scanned those boxes with smartphone cameras, the AR PAC-MAN game appeared on top. Combining nostalgic emotions with technological progress worked well.

Review

Allowing customers to leave an AR-powered user review brings retailers lively feedback. Apart from text, users share photos and videos through AR apps. It shows the way they interact with products and demonstrates their natural reactions. Businesses analyze it and generate insights on product improvements.

Addressing technological challenges

A longstanding report released by Mindshare and Zappar indicated that AR almost doubled the engagement potential of the content compared to its non-AR versions. Other more modern reports show that consumers are likely to spend more time examining the AR-featured products, increasing conversions and ROI. However, there are still challenges that prevent eCommerce retailers from implementing new solutions.

Standardization and cross-platform compatibility

Although technologies like Apple’s ARKit and Android’s ARCore have made AR widely accessible, there is still a need for industry standards to enable seamless 3D and AR experiences across different platforms and browsers.

To overcome this challenge, organizations may adopt cross-platform development frameworks such as Unity or React Native. They enable AR applications to run smoothly across diverse devices and operating systems.

Achieving high-quality 3D models

Photo-realistic 3D models are the foundation of any AR experience. However, it is technically difficult to develop them. Methods like photogrammetry, 3D scanning, and manual 3D modeling each have limitations related to cost, flexibility, accuracy, and suitability for different product types (e.g., reflective materials like metal or glass pose challenges).

To reduce the complexity, companies may integrate cost-effective tools such as 3D scanning apps (e.g., Shopify’s 3D scanner), VR simulation development, and automated 3D asset management systems. These systems optimize, compress, and convert 3D models into multiple formats suitable for different platforms, improving load times and user experience while lowering manual effort.

Balancing cost and efficiency

Producing 3D assets can be expensive, with costs ranging from hundreds to over a thousand dollars per product, depending on complexity.

As a solution, retailers might consider cloud infrastructure that allows for offloading heavy computational tasks from devices, enabling scalable, responsive AR experiences without requiring expensive on-site hardware.

Smooth integration into workflows

Difficulties might occur when retailers start integrating 3D assets into their existing product catalogs and eCommerce platforms. This process must be smooth and easily scalable to deliver excellent AR shopping experiences.

It is recommended for firms to implement automated optimization and compression workflows to keep 3D model files lightweight without sacrificing quality. This will not compromise website performance and improve overall user engagement. Besides, to improve user experience and adoption, companies should design intuitive, user-friendly interfaces with familiar UI elements and provide educational resources like tutorials or demo videos to guide users in interacting with AR features effectively. Clear instructions and easily accessible support reduce user frustration.

Despite these challenges, many retailers have found that investing in 3D modeling can reduce costs and improve efficiency in product catalog creation and prototyping, making AR more practical and beneficial in the long run. A custom software development vendor like PixelPlex can effectively address the main AR challenges in eCommerce while delivering scalable, engaging, and cost-efficient AR shopping experiences. We prefer to take a comprehensive and multi-faceted approach.

Augmented reality for eCommerce best practices

Augmented reality in eCommerce is already our modernity. There is no reason to wait for a better moment. It’s better to get started now and move forward alongside the progress. Here are some key best practices from our team.

1. Decide on the context of the AR shopping experience for your customers

Customers may interact with AR at home, inside the store, or on the go. Choose the most efficient form. What your consumers need, how your product helps them, and how they understand it through an AR experience.

2. Examine use cases

Learn from the experience of the competitors. Develop a solution for one product or a particular target audience segment in the beginning. Therefore, you will have time to evaluate the results and scale gradually.

3. Select the delivery platform

Web apps do not require downloads and work from a browser. Mobile apps need a different approach and an incentive to stimulate customer adoption. You may think about personalized onboarding, rewards, gamification, push notifications, and influencer marketing to engage users effectively.

4. Test your solution

Establish robust testing and feedback loops by using cloud-based simulations and real-device testing across various hardware configurations. It will ensure consistent performance, help to identify bottlenecks, and allow for continuous improvement based on real user data.

5. Develop a plan to achieve further goals

Compile a list of measured benefits, predict costs, and think of possible necessary changes to workflows. Keep this data as a road map for future iterations.

Conclusion

Augmented reality provides retailers with several benefits that make it worth implementing. It turns a shopping routine into an exciting experience. Happy customers bring companies high conversion rates, and brand loyalty grows. Introducing complex AR projects might become technologically challenging. However, partnering with experienced software developers helps avoid most of the hurdles and accurately follow the plan from initial MVP to final testing. Drop us a line and we will reach out to you and discuss your expectations.