The Oculus Rift, Samsung's Gear VR and other virtual reality (VR) headsets have caused quite a stir in technology circles, with some people praising them, heralding them as "The Future", and others decrying them as yet another distraction in an already-cluttered world of disruptive devices. While the relative merits and pitfalls of virtual reality have been debated ad nauseam, one thing is for sure: VR is here to stay.

Virtual Reality And Augmented Reality – What Are They?

Quite simply, VR involves the simulation of an artificial environment in which the user is immersed. Imagine sitting at your table and reading this article, at one instant, and then finding yourself in a spaceship surrounded by the stars, the next. That's VR.

Augmented reality, or AR, is an offshoot of VR that has gained just as much traction in the last two years. AR involves the overlapping of simulated data upon existing user environments. For example, if you have an AR headset, you could see your desk just the way it is, but you could also see a fully-grown tiger on it. If you tilt your head, or move around the table, the tiger will change position relative to your movement, just as if it were really there. Seen Minority Report? Something like that.

By and large, realistic AR is harder to accomplish than VR is. Something that these two technologies have in common, though, is that they have been applied across a wide range of industries. The obvious ones include Entertainment, Gaming and Marketing. An industry that is perhaps less obvious, but one that can benefit vastly from VR and AR, is online shopping.

eCommerce Has Come A Long Way

In July 1995, in a garage somewhere in Seattle, A man named Jeff Bezos sold a book titled "Fluid Concepts & Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought." That was the first sale that Amazon made. Today, Amazon is valued at $248 billion. Even in developing economies, eCommerce has picked up in a big way. It is estimated by AT Kearney, a global management consulting firm, that $1.15 trillion will change hands in 2016 through eCommerce transactions. The playing field is growing by the day, and there always seems to be place for more stores. Furniture, upholstery, books, apparel, groceries, flowers, even adult toys – If it's legal and it can be packaged, these companies will ship it.

eCommerce Grows, But Conversion Rates Don't

However, a pressing problem that several users have is that products can't be tested/tried/put on. They can't be felt, touched or checked in any way for defects. Customers have to trust that the store will deliver on their promises. This isn't something that many people are comfortable with, as is reflected in the consistently low conversion rates (2% to 4%), and extremely high shopping cart abandonment rates (75.45%).

One way to stop the bleeding would be to implement virtual technology, so that users get to interact with the product in some way. While nothing can be as good as actually holding the product in one's hands, VR/AR comes in a close second.

So, How Can VR Help Retail Businesses?

It already has started.

Lowe's, the go-to home improvement retail store in America, Canada and Mexico, has come up with a VR simulation app for its customers. Called the Lowe's Holoroom, the app is changing customer perspective – Literally. With this app, customers redesign their rooms virtually with Lowe's products, and then view it using YouTube 360! This is a powerful way to remove one of the biggest impediments in home improvement – Trying to visualize what the space will look like after it is changed. "You can stand in your own kitchen and overlay a fridge on top of your own fridge," says Kyle Nel, executive director of Lowe's Innovation Labs.

Facebook 360, launched in September 2015, allows users to navigate 360-degree videos in their Facebook News Feed, even without headsets. This has offered a great platform for several retail businesses looking to jump on the VR bandwagon. Look at NARS Cosmetics, the popular French cosmetic retailer. They recently achieved the distinction of becoming the first beauty brand to collaborate with Facebook 360. NARS has created 360-degree videos of its makeup tutorials, where the user sits in the middle of a room and views beauticians applying makeup on models.

How About AR, Then?

Augmented reality can be more effective than virtual reality when it comes to online shopping; the obvious reason being that customers can see how the product really looks before they buy it. AR works particularly well for brands that are selling cosmetics, apparel, footwear or other accessories that are meant to be used on the customer's person in some way.

Topshop is a British fashion retailer with over 500 stores. Recently, a Topshop store in Moscow created an AR-powered dressing room for visitors, using Microsoft's Kinect motion sensor for Xbox. The store was designed by AR Door, a Russian AR agency. Women could "try on" different clothes without having to actually take off or put on any. While this technology was used in a brick-and-mortar store, online retailers are going to follow suit, and soon.

Converse, the popular alternative clothing brand has created the Converse Shoe Sampler, an app that lets you see how different Converse shoes look on your feet. Shoes can also be bought directly from the app, which means that customers can find shoes that they like and have them delivered, without ever having to visit a store in person - or indeed, without even having to leave their homes.

eCommerce VR Will Be Commonplace In Two Years

This isn't a joke. It's already happening; there are tech firms that are focused on helping retailers build VR experiences for their customers. Trillenium is one of them – A British startup that builds virtual stores for brands. eCommerce businesses can have a virtual space created for their customers (Complete with products on the shelves) and even speak to other customers, essentially creating a comprehensive simulation of a brick-and-mortar store.

In the AR space, we have Augment, an AR app for iOS and Android that lets customers see how various products sold on eCommerce sites will look in their homes. On eCommerce sites that have partnered with Augment, products have a "try it on" option, which will overlay said product anywhere the customer points their smartphone camera. Products can be pushed away, brought closer, stuck to walls or manipulated in several other ways.

Since the interaction is far more dynamic than the regular experience eCommerce sites presently offer, businesses are going to jump at the opportunity, in the hopes of improved conversion rates. They won't be wrong, either: A study by IBM shows that consumers want the same level of personalization online as they get when they shop in stores. In fact, 58% of consumers are looking for in-store product information and 92% of the retail volume comes from in-store purchases. If these numbers are to change, eCommerce businesses have to provide more personalized experiences. This means adopting VR or AR technology, and allowing the customers to experience their products before buying.

A Word Of Caution

VR/AR is going to be a given in the online retail space in the near future. However, businesses that are trying to beat each other to the door should stop to consider the costs and the potential benefits that the technology will bring.

Look at Toms, the California-based shoe company. They created a VR video for their one-for-one initiative, where they donated a pair of shoes for every pair that customers bought. They put this story out on VR, with a video of school children in Peru receiving the shoes. Customers can walk into select stores and immerse themselves in Toms' story - literally.

While the experience has undoubtedly impressed customers, it wasn't cheap: It cost $250,000 to film the video, and $1,000 per store to have them outfitted. Another massive expense was training at least one salesman in every store to operate the gear and walk customers through the process.
So, businesses: Be wary of how much you invest in VR. While the results may be great, understand that it won't come cheap. And make sure the VR or AR experiences that you invest in are relevant to your brand; you don't want to appear flashy without having any real value to offer.