How Augmented Reality Is Transforming E-Commerce Experiences in 2025

By Elizabeth FosterLast Updated September 4, 2025

Photo by photo nic on Unsplash

Introduction: Augmented Reality Reshapes E-Commerce

Augmented reality (AR) is redefining how consumers engage with e-commerce platforms. By overlaying digital information-such as images, videos, or 3D models-onto the physical world through smartphones, tablets, and AR glasses, AR bridges the gap between online and offline shopping, making digital commerce more interactive, personalized, and confidence-inspiring. In 2025, AR is no longer a novelty but a strategic necessity for retailers aiming to attract and retain customers in a competitive marketplace. [1] [2] [3]

The Core Role of AR in E-Commerce Experiences

AR technology enhances online shopping by enabling customers to visualize products in real-world settings before purchase. This includes:

Product Visualization: Shoppers can place virtual furniture in their living rooms, previewing how items will fit and match their dÃ©cor. Major retailers like IKEA have integrated AR into their mobile apps, letting users see products at scale and in place. [2]
Virtual Try-Ons: Clothing, accessories, cosmetics, and even shoes can be tried on virtually using AR overlays. Brands such as Adidas and beauty retailers have launched AR features that allow customers to see how products look on their bodies or faces, reducing guesswork and hesitation. [5]
Interactive Shopping Experiences: AR-powered navigation and in-store displays blend physical and digital retail, guiding shoppers, providing additional information, and enhancing engagement with dynamic content. [5]

Benefits of AR for Shoppers and Retailers

AR delivers measurable advantages for both consumers and businesses:

Increased Purchase Confidence: Industry data shows that up to 75% of shoppers feel more confident making purchases with AR, thanks to the ability to see and interact with products virtually. [1]
Reduced Returns: By enabling accurate assessment of product fit and appearance, AR can reduce return rates by as much as 40%, saving retailers significant costs. [1] [3]
Higher Conversion Rates: Shopify reports that products featuring 3D/AR content see an average conversion increase compared to standard listings, with some retailers experiencing sales boosts of over 250% for AR-enabled products. [5]
Personalization and Engagement: AR allows for tailored shopping experiences, such as customizing shoes with unique colors or slogans, or creating virtual makeup looks, which can lead to stronger brand loyalty. [2]

For younger demographics, AR is especially compelling: 92% of Gen Z shoppers express a preference for AR-powered online shopping. Nearly 60% of the U.S. population are expected to use AR regularly for retail by 2025. [4]

Real-World Examples and Case Studies

IKEA Place: The IKEA AR app enables users to virtually place furniture in their homes, view it from different angles, and match it to existing dÃ©cor. This reduces in-store visits and increases purchase confidence. [2]

Adidas & Snapchat: Adidas partnered with Snapchat to offer virtual try-ons for sneakers, allowing users to see how different styles look on their feet before buying. [2]

Oakywood & Shopify AR: Oakywood, a furniture maker, uses Shopify’s AR tools so customers can preview custom furniture pieces in their real environment, resulting in a 250% increase in sales of key products. [5]

How to Access and Use AR Features in E-Commerce

Most AR shopping features are accessed through retailer mobile apps or websites that support AR experiences. To use AR features:

Download the retailer’s official app from a trusted app store (such as the Apple App Store or Google Play Store).
Look for AR icons or “View in Your Room” buttons on product pages. These indicate that AR functionality is available for that product.
Grant camera access when prompted to enable real-time AR overlays.
Follow on-screen instructions to virtually place, try on, or interact with the product in your environment.

If you are uncertain whether a retailer offers AR features, search for “[Retailer Name] augmented reality shopping” or visit the retailer’s customer support page for guidance. Major retailers like IKEA, Adidas, and many Shopify-based stores offer AR shopping tools in 2025. [1] [5]

Implementing AR in Your E-Commerce Business

For businesses, adding AR to your online store can be achieved through several approaches:

Leverage Existing Platforms: Platforms like Shopify offer built-in AR support, allowing you to upload 3D models and enable AR product views with minimal technical effort. For guidance, visit Shopify’s official documentation or support center. [5]
Develop Custom AR Apps: Large brands can invest in tailored AR apps for immersive, branded experiences. This approach requires partnering with AR development agencies or hiring in-house talent.
Utilize Social Media AR: Brands can create AR filters or lenses for platforms like Snapchat or Instagram to boost engagement and product awareness. To get started, use official tools such as Snapchat’s Lens Studio or Instagram’s Spark AR.

Before implementing AR, consider the following steps:

Identify which products benefit most from visualization or virtual try-on.
Develop or source accurate 3D models of your products.
Test AR experiences across devices for usability and performance.
Promote your AR features in marketing materials to drive adoption.

Retailers should also monitor analytics to track AR engagement and conversion rates, and iterate based on customer feedback. [5]

Challenges and Solutions in AR E-Commerce

While AR adoption is growing quickly, challenges remain:

Device Compatibility: Not all consumers have AR-capable devices. Retailers should ensure alternative product visualization options are available.
Content Creation: Creating high-quality 3D models requires investment in design and technology. Outsourcing to specialized agencies or using AR-ready platforms can streamline this process. [2]
User Education: Some shoppers may be unfamiliar with AR features. Providing clear instructions and support within apps and websites helps drive usage.
Privacy and Security: AR apps require access to cameras and sometimes location data. Retailers must be transparent about data usage and comply with privacy regulations.

For businesses new to AR, starting with a pilot project focused on a small product range is a practical way to measure impact and gather insights before scaling.

Alternative Approaches and Future Outlook

Alternative visualization technologies, such as 360-degree product photography and basic 3D viewers, can supplement AR for users without compatible devices. As AR hardware and software become more standardized and affordable, broader adoption is anticipated. In the coming years, integration with artificial intelligence (AI) will likely make AR shopping even more personalized and intuitive. [4]

Key Takeaways

Augmented reality is no longer an emerging trend-it is a defining force in the evolution of e-commerce. By enabling immersive, interactive product experiences, AR increases shopper confidence, reduces returns, and drives higher sales. Whether you are a consumer seeking more information before a purchase or a retailer aiming to stay ahead of the curve, AR tools are increasingly accessible and effective. For more information on AR-enabled shopping, consult your preferred retailer’s support resources or search for “augmented reality shopping tools” to explore current offerings.