March 26, 2024
The Future of E-Commerce
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March 26, 2024
The Future of E-Commerce
The evolution of e-commerce and online shopping has dramatically altered traditional in-person retail experiences. Augmented Reality (AR), when integrated into online shopping experiences, shows significant potential as technological advancements continue to unfold. The promise held by AR is not a distant concept but rather a tangible reality on the horizon. Businesses that embrace and harness the potential of AR are poised to discover innovative solutions that enhance user experiences, revolutionize traditional practices, and unlock new avenues for growth.
This white paper explores the diverse potential of AR, from small business marketing to virtual trade show formats and spatial design for enhanced event experiences. By investigating innovative approaches, it aims to develop solutions that enable small businesses to connect and engage with their audience in the evolving landscape of virtual product marketing. Additionally, the paper investigates the necessary technology tools, evaluating their user-friendliness to determine the most effective options.
The research for this white paper will explore Augmented Reality tools to integrate with e-commerce platforms. Research will be done to learn which tools are most user-friendly to implement. Cost considerations will also be researched to determine if this is a realistic option for the handmade community to have the budget to utilize at this time, now or in the near future.
Exploration will also be done to determine if there is a platform that can be utilized to create a trade show environment for artists to display their products in a virtual trade show format. The booths within the show will need to be created to house the artisans’ products, so research will be done to find out how this would be done and what would be involved in working with another service or designer to handle that aspect of the project. Similarly to the in-person show employing a show decorator to set up the booth setups and furnishing.
The overall objective is to offer a comprehensive understanding through the findings in my report, outlining the current viability and process of integrating AR technology into e-commerce. I aim to emphasize that this technology is available now, positioning small businesses at the forefront of cutting-edge exposure and cultivating awareness among artisans.
The emergence of virtual shows, initially prompted by the pandemic, bridged the gap for tradeshows when it was not possible to hold in-person events. The article, Trade Show Attendance Still 20% Below Pre-Pandemic Levels: 2023 Data Study, "it wasn’t helped by macro-level factors affecting the U.S. business landscape in recent years. Recent high inflation, continued labor shortages, and struggles with remote work likely affected how much businesses (as they make up a majority of attendees) could invest in sending their employees to expos and trade shows." Unfortunately, the return to in-person events has proven challenging, with dwindling exhibitor participation and a decline in buyer attendance, post-pandemic recovery is still 20% below pre-pandemic levels.
In response to these shifts, companies have opted to close smaller niche shows, such as American Handcrafted Philadelphia, INATS, NY Stationary show getting absorbed into NY NOW, and the closure of Surtex. For some companies, the decision was to opt for a more consolidated business model of hosting the bigger shows. Unfortunately, this has left fewer viable options for micro and startup-sized businesses, with the remaining alternatives often proving cost-prohibitive. In an article from Craft Industry Alliance, How Trade Shows Can Stay Relevant in the Digital Age, "More exhibitors are understandably debuting and releasing product information online—with ordering capabilities—prior to the show and year-round.” Some of the shows are looking for innovative ways to transform their events to keep costs down, as well as coming up with must-see experiences to draw attendance.
The exploration of alternate models for trade events is being explored to save on costs for both retailers and artists. The Nashville Needlework show moved from a convention center to a suite-style show. However, they find that the discovery process is not quite as organic. and buyers walking through the aisles. Bob Ruggerie, from Quilts, Inc is quoted saying that "the challenge for us, or producers of any trade show in any industry, is to keep pace with those developments while also creating an atmosphere in which the ‘in-person’ and ‘online’ experiences both work together.” With so much discovery happening online, trade events need to transform to offer more of an experience and a place for forging relationships for attendees, in addition to where they will place their orders and where the value should be emphasized for all participants.
Improving the customer experience of both in-person and hybrid event shopping is the way of the future. In an article from TSL, Top 10+ Trade Show Trends to Stand Out at Your Next Trade Show, they discuss the trend of creating an experience that is "...Guiding, engaging and to woo the attendees, wooing attendees in ways that feel more sci-fi than CNBC" and their article goes over event strategy making an exhibitor stand out.
Amidst these challenges, a critical reassessment of the viability of online shopping experiences may be the solution, if nothing else, to create a hybrid event experience to expand the reach of trade show events. Augmented Reality (AR), with its escalating accessibility with the vast use of smartphones, will transform the way buyers will be able to engage with small companies and see their products in a dimensional form. As stated in an article from Bluestone PIM, "AR becomes a transformative force that blurs the lines between the physical and digital worlds," enabling buyers to visualize products in their stores' environments, which opens a future with new possibilities of how they will interact with discovering new products for their stores.
Though virtual trade shows began as a pivot during the COVID-19 pandemic, they continue to be utilized by many industries. The importance of face-to-face events remains, but the rising costs have continued to keep attendance down for most events. In an article from Airmeet, "Being far more cost-effective and with global reach, Virtual trade show has not just gained popularity but also acceptance and more and more organizers are opting for a cost-effective virtual trade show."
The challenge with virtual events is including enough appeal to bring in the audience, Forbes article, Why Real-Time Attendance Still Matters In The Age Of Virtual Events, says it well, "Event planners need to consider alternative engagement methods that create a sense of FOMO for prospective audiences." Including live interactive sessions, and a chance to be the first to see new product releases, and live speaking sessions from industry leaders are ways that will compel more live attendance during the event.
Virtual and hybrid events provide attendees with a heightened level of immersion through live interactive content, which can also be accessed and viewed later on, offering greater flexibility to a broader audience.
"While the power of in-person events cannot be disputed, the reach of virtual events is enormous. As for hybrid events, they combine the best of both worlds." - Cvent.com
While both AR and VR offer immersive experiences, AR enhances the real world with digital elements, while VR transports users to entirely virtual environments.
Augmented Reality (AR) involves overlaying 3D objects into the user's environment. One of its remarkable advantages lies in its accessibility to any user with a smartphone or newer tablets, which offer a larger viewing area. What sets AR apart is its capacity to present virtual objects within your current environment without the requirement of wearing a viewer.
Tech Target's article explains it well: "Mobile devices typically contain sensors, including cameras, accelerometers, Global Positioning System (GPS) instruments and solid-state compasses. For AR applications on smartphones, for example, GPS is used to pinpoint the user's location, and its compass is used to detect device orientation." Augment reality can be viewed with smartphones, tables, glasses and there are contact lenses in development.
Augmented Reality is more prevalent than many realize, intricately woven into various social media applications such as Snapchat, and Instagram. From placing virtual creatures in your home to adding filters for facial enhancements or additional elements, AR enriches our digital experiences in ways often overlooked. These effects are commonly utilized with smartphones, among other devices. The LinkedIn article, Augmented Reality for e-commerce: the what, why, and how, notes that "(If) it hadn't been for Pokémon Go (Using Augmented Reality), it may have remained a cool, if little obscure, technology kept almost solely for geeks and gamers."
These subtle yet compelling AR elements not only enhance user engagement but also serve as powerful tools for brands and marketers to connect with their audiences on a deeper level. Whether it's trying on virtual makeup or visualizing products in real-world settings through AR filters, social media users are increasingly drawn to these experiences, making AR an integral part of modern digital culture.
Image credit: emarketer.com
With the shift of buying more online during COVID, the need for online shoppers to be able to experience products in their own environment was a good selling point to increase sales. The shift to online shopping during the COVID-19 pandemic highlighted the importance of providing online shoppers with the ability to experience products virtually in their own environments. This capability became a valuable selling point for businesses looking to increase sales, as it enhanced the online shopping experience and helped customers make more informed purchasing decisions.
Several pioneering brands as early adopters leading the way were Nike, Sephora, and Wayfair, along with retail giants such as Walmart, Target, and The Home Depot. Their early adoption of AR revolutionized e-commerce, offering consumers realistic, personalized interactions and reshaping online shopping.
Brands that adopt AR stand out positioning themselves as innovative, forward-thinking, and dedicated to enhancing the customer experience. Shopify and Overstock.com report that the use of AR in their e-commerce platforms have increased sales by as much as 200%, demonstrating the tangible benefits and ROI of integrating AR technology into marketing strategies.
AR is transforming how brands connect with consumers. It goes beyond static images and videos, offering interactive experiences that capture attention and leave a lasting impression. This adaptability extends across various marketing channels, from e-commerce websites with virtual try-on features to immersive AR events.
By embracing AR, brands gain a competitive edge. They can:
As AR technology evolves and becomes more accessible, its role in marketing strategies will continue to expand. This opens doors for innovative ways to engage consumers and stand out in a competitive market.
AR-powered advertising campaigns have the potential to go viral, generating buzz and amplifying brand visibility across social media platforms.
Augmented Reality is revolutionizing the way brands craft authentic experiences for their customers. By blending digital elements with the real world, AR enables brands to create immersive, memorable interactions that resonate with consumers and help the user to feel a realistic representation of the product in their own environment. These authentic experiences not only drive customer engagement but also cultivate brand loyalty and advocacy.
In addition, augmented reality serves as a solution to the persistent challenge of high return rates in e-commerce. By allowing customers to virtually experience the product, such as testing or try-on before purchasing, they feel more confident in their buying decisions, ultimately reducing return rates and enhancing overall customer satisfaction. This functionality addresses a critical pain point in online shopping.
As brands continue to adopt AR technology, they not only elevate the shopping experience but also establish themselves as innovators in the industry demonstrating their commitment to meeting consumer needs and enhancing their online shopping journey, ultimately positioning themselves for sustained success in the competitive digital marketplace.
With the increasing accessibility of AR technology, showcasing handmade products becomes more feasible. Handmade buyers prioritize authentic experiences, seeking to understand the context and quality of these products by being able to inspect the product by seeing the object's details by viewing it as 3-dimensional item. This innovative approach gives makers a distinct advantage, allowing buyers to gain confidence in their purchases. As pioneering retailers have already embraced AR to enhance the shopping experience, makers can now leverage this technology to market their products to handmade buyers, unlocking great potential in the handmade industry.
As artisans embrace AR technology, they not only elevate the shopping journey but also acquire invaluable insights to propel innovation and expansion within the handmade market. Through monitoring user engagement with AR-integrated product listings, artisans can collect crucial data on customer preferences, behaviors, and interaction trends. This data equips artisans to refine their offerings, recognize emerging market trends, and forecast consumer demands, thereby facilitating ongoing innovation and sustainable growth in the handmade sector.
This transition towards immersive and interactive shopping experiences offers exciting prospects for the handmade market. Artisans can now establish virtual booths to present and sell their creations directly to buyers or consumers. Through these virtual settings, artisans can effectively showcase their products, providing customers with a comprehensive brand narrative and an engaging shopping encounter reminiscent of browsing through their booth at an in-person event. This innovative strategy not only heightens authenticity but also grants visitors an immersive glimpse into the artisan's body of work and how they present pieces together to tell their story, effectively bridging the gap between physical and virtual shopping experiences.
There are two main approaches to creating AR models for products:
Sketchfab is a platform catering to millions of 3D creators, providing a space to showcase their work and connect with others in the community. Users can buy and sell 3D models on the Sketchfab Store, which offers a wide range of models for various purposes. The platform boasts a market-leading 3D player optimized for the web, allowing for interactive and configurable experiences that are compatible with virtual reality (VR) and augmented reality (AR) technologies. Sketchfab supports all operating systems, browsers, and devices, ensuring accessibility for users across different platforms. Additionally, its embeddable feature allows users to share and integrate 3D models across eCommerce, advertising, and social media platforms.
Dopple offers a user-friendly platform specifically designed for creating AR experiences. You can upload high-quality 3D models of your products and generate interactive features for your website or social media.
Dopple's demos showcase a ring and a handbag with color variants which are similar products that are relatable examples of how some types of handmade products would appear in AR.
An intriguing example by the Business Innovation Showcase, just released March 19, 2024, includes a virtual gallery environment where users can explore and interact with artwork, demonstrating the platform's versatility and potential for use to showcase handmade product exhibits.
Beyond static product views, Spatial's AR features unlock a new level of engagement. Picture a buyer using their phone or tablet to virtually place a handmade vase within their gallery space. They can then manipulate its size and position, visualizing how the piece would interact with the existing décor and lighting. This immersive experience fosters a deeper connection with the artwork and empowers buyers to make confident purchasing decisions. This interactive exploration empowers buyers, demonstrating Spatial's versatility and potential for use in showcasing handmade product exhibits.
With Spatial's capabilities, store buyers and gallery owners can transform the way they explore and curate handmade art collections. There are many great examples made by creators, with more continually popping up. Included are some examples that are most relevant for the handmade industry.
ARway's technology can revolutionize the visitor experience by providing interactive indoor navigation. Instead of relying on static maps or signage, attendees can use their smartphones to access real-time directions overlaid on their surroundings through AR. This not only enhances wayfinding but also creates engaging and immersive experiences. By integrating AR overlays, exhibitors can guide visitors to specific booths or highlight key features of their offerings, driving increased engagement and potentially boosting sales.
ARway's indoor mapping and navigation technology can be utilized to create immersive virtual trade show events as an alternative to attending physical exhibitions. Exhibitors can create virtual booths, allowing attendees to explore products and interact with exhibitors through AR interfaces.
Interactive product demonstrations enhance the experience by showcasing products in 3D, simulating a hands-on experience. Networking and engagement are facilitated through virtual meeting spaces, fostering connections among participants.
Educational workshops and seminars are enhanced with AR overlays, making learning more engaging. Additionally, ARway provides valuable analytics and insights into attendee behavior, enabling exhibitors to refine their marketing strategies based on user interaction data.
From Proactiveinvestors.com, ARway "now offers Artificial Intelligence (AI) powered floor plan alignment, with positioning and re-localization, and expanded map analytics capabilities."
By integrating AR technology into their e-commerce strategies, handmade artists can unlock a wider audience and selling opportunities.
Options for creating AR models:
When considering which software is best for e-commerce purposes, several factors come into play, including ease of use, rendering capabilities, and compatibility with e-commerce platforms. A few of the software options suitable for e-commerce:
Adobe Substance 3D Modeler: While Substance 3D Modeler primarily focuses on creating textures and materials, its output can significantly enhance the visual appeal of products showcased in e-commerce platforms. The photorealistic textures and materials created with Substance 3D Modeler can help products stand out and attract potential buyers.
Quixel Mixer: Quixel Mixer's ability to blend and layer textures makes it a valuable tool for creating visually appealing product renders for e-commerce. Its extensive library of high-quality textures allows for the creation of realistic product representations that can increase customer engagement.
Substance Painter: Substance Painter's advanced painting tools and procedural workflows make it well-suited for creating detailed textures for product models. It can be used to add intricate details and textures to product renders, enhancing their visual quality and making them more appealing to potential customers.
Mari: Mari's high-resolution texture painting capabilities make it suitable for creating detailed textures for e-commerce product renders. Its advanced painting tools and support for complex shader networks allow for the creation of realistic textures that can help products stand out in e-commerce listings.
3D Coat: 3D Coat's digital sculpting and texture painting capabilities make it a versatile tool for creating product models and textures for e-commerce. Its voxel sculpting features and UV mapping tools enable artists to create detailed product models with high-quality textures that can enhance the overall visual appeal of product listings.
Imagine.io is a website owned by Shopify, which provides a platform for 3D modeling and rendering services specifically tailored for e-commerce businesses. It allows users to create photorealistic 3D models of their products, which can then be integrated into their Shopify stores to provide immersive product experiences for customers.
Imagine.io simplifies the process of creating 3D models by offering easy-to-use tools and templates, making it accessible to users without extensive 3D modeling experience. It also provides rendering services to ensure that the 3D models look visually appealing and realistic.
For e-commerce businesses, Imagine.io offers several benefits:
Overall, Imagine.io offers e-commerce businesses a convenient and effective solution for creating and integrating 3D models into their online stores, helping them enhance product visualization, and differentiate their offerings.
Ultimately, the choice of software depends on the specific needs and preferences of the e-commerce business. Factors such as the type of products being sold, the desired level of detail in product renders, and the skill level of the user should be taken into consideration when selecting the most suitable software for e-commerce purposes.
Particularly within the Handmade industry, several software options emerge as noteworthy contenders, as elaborated below.
The use of AI for AR models is just emerging, there is no single dominant tool demonstrated as the forerunner that is most used.
Here are some examples of currently available tools and technologies for creating AR models:
3D scanning involves capturing the physical form of an object to create the digital 3D model needed for AR. All3DP.com has a great article that goes over some common methods:
3D Modeling Software:
3D modeling software allows you to create digital 3D models from scratch or by manipulating pre-existing shapes, SelfCad has an interesting step-by-step article.
AI technology for AR models is still evolving, though it may be helpful to offer some assistance, it is not yet replacing traditional methods. For example: 3D scanning offers a way to capture existing objects into digital models, while 3D modeling software allows for complete creative freedom in building models from scratch.
While AI holds promise for simplifying and streamlining the creation of AR models, it's important to understand its current capabilities. Here's a breakdown of the limitations to consider, particularly for intricate handmade products:
For the use of the handmade community, Imagine.io is currently to be the most cost-effective and user-friendly for integrating 3D models into e-commerce platforms. Many handmade artists already use Shopify, making this an easy addition to enhance their e-commerce.
It offers easy-to-use tools and templates, making it accessible to users without extensive 3D modeling experience. Additionally, imagine.io provides rendering services to ensure that the 3D models look visually appealing and realistic. Overall, imagine.io simplifies the process of creating and integrating 3D models into e-commerce websites, making it a cost-effective and user-friendly option for businesses.
Woo Commerce is a popular user-friendly plugin for WordPress, enabling users to integrate e-commerce functionality into their websites, A couple of well-regarded options to utilize AR features into Woo Commerce are:
AR for WooCommerce: This free plugin allows you to add 3D models of your products to your product pages. Customers can then view these models in AR using their smartphones or tablets.
CartMagician PRO Augmented Reality for WooCommerce: This premium plugin offers a wider range of features, including the ability to create virtual showrooms and product tours in AR.
For a more in-depth exploration of AR and WooCommerce, consider these additional resources for Augmented Reality Plugins for WordPress & WooCommerce, and a video walk-through of plug-in installation.
AR presents significant opportunities for handmade businesses. By thoroughly exploring the available platforms, creation methods, and virtual event options, artisans can effectively present their work to a broader online audience. Initiating an AR strategy can lead to substantial growth and success as an early adopter in the handmade industry, boosting its e-commerce businesses with the benefits of:
The handmade industry is built on a rich tradition of exceptional craftsmanship. However, the landscape is evolving. While the heart of handmade remains irreplaceable, innovative technologies like Augmented Reality (AR) offer exciting possibilities to elevate creations and connect with customers in groundbreaking ways.
This white paper has unveiled the transformative power of AR: building trust, fostering deeper connections, and showcasing artistry in captivating experiences.
Early adoption of AR presents a unique opportunity. It allows businesses to not only elevate their brand and reach but also shape the future of e-commerce for the entire handmade community. While the technical aspects might seem daunting, there's no need to be discouraged. This white paper offers valuable guidance, and partnering with AR specialists can help businesses navigate the process and bring their vision to life. By taking action, businesses have the power to revolutionize the customer experience, stand out from the crowd, and unlock new avenues for success.
A list of interesting articles discovered while working on the whitepaper.
