Immersive Technologies Help Retailers Boost Conversions and Reduce Returns

Visuals are crucial in retail, with many brands looking for new ways to effectively demonstrate their products. Immersive technologies like 3D visuals and augmented reality (AR) are revolutionizing the shopping experience, helping retailers drive sales and minimize returns. Let’s explore how these innovations make a difference.

Increasing Conversion Rates With Better Visualization

3D visuals increase a consumer's purchase intent by 29 percent, according to key metrics obtained after performing Cappasity customer development. Such visuals drive consumers towards the final step in the buying process. As for AR content, according to Shopify, products with 3D and AR content have a 94 percent higher conversion rate than those without. Similarly, a report by Deloitte found that 71 percent of consumers say they would shop more often if retailers offered AR and virtual reality (VR) experiences. Immersive technology doesn't just enhance the shopping experience — it directly affects the bottom line.

Moreover, 3D and AR experiences offer an opportunity to present complex products in a more understandable way. For categories like luxury goods, furniture, and electronics, detailed visualization removes doubts, helping consumers feel more confident and speeding up their decision-making process.

In addition, personalization is becoming a major factor in conversion rates. Some immersive platforms allow brands to offer personalized product experiences, adjusting virtual models based on customer preferences. Personalized immersive content can increase user engagement and lead to significantly higher sales.

Bringing the Store to Life

Lancôme offers a strong example of how brands can create immersive experiences with real business impact. The company launched a virtual pop-up shop for the UK market, featuring 3D product displays and digital consultations with beauty and skincare experts. Customers could explore the space as if they were browsing a real store, but from the comfort of their home. The experience combined storytelling, interaction and convenience, capturing the festive atmosphere of in-person shopping while remaining fully digital.

This “phygital” (physical + digital) model is gaining popularity across industries, allowing retailers to build emotional connections through virtual environments. These experiences are not only memorable but highly scalable, enabling brands to reach wider audiences without sacrificing quality.

Minimizing Product Returns

Product returns are one of the biggest pain points in e-commerce. On average, 30 percent of online purchases are returned, and one of the top reasons cited by consumers is that the item didn’t match its online appearance. In fact, 35 percent of returns happen because the product looks different than expected. This disconnect creates frustration for customers and increases operational costs for retailers.

High-quality 3D product models significantly reduce this gap. When shoppers can rotate a product, view it up close, and understand its scale, they're far less likely to be surprised upon delivery. This leads to better expectations and fewer disappointments.

AR takes this a step further. The technology allows customers to place products in their own environment — whether it’s a couch in the living room or sunglasses on their face. According to research by Alter Agents, Snap Inc., and Publicis Media, 80 percent of AR shoppers feel more confident in their online purchases after experiencing the items through AR. And confidence translates into fewer returns: 66 percent of AR users say they're less likely to send items back.

Click the “Cube” icon to activate an AR experience.

Some retailers are already seeing major results. Ikea's “IKEA Place” app lets users place true-to-scale furniture in their homes via AR. The home decor retailer reported a 35 percent drop in product returns and a 14 percent increase in online sales after launching the app. Similarly, Sephora’s Virtual Artist tool, which lets consumers try on makeup virtually, has led to higher satisfaction and decreased return rates.

Expanding Reach Through Immersive Campaigns

Beyond improving sales and minimizing returns, immersive technologies also offer a way to reach new markets. Virtual pop-ups, AR ads, and 3D product demos can be shared across social media, allowing brands to create viral, shareable moments. Interactive experiences are more likely to be shared by users, amplifying brand exposure without heavy investment in traditional advertising.

Luxury brands, in particular, use immersive marketing to maintain their exclusivity while becoming more accessible to younger, tech-savvy audiences. By integrating immersive content into mobile apps and websites, luxury brands stay relevant in a rapidly changing digital landscape.

Immersive technologies like 3D imaging and AR are transforming retail by making shopping more interactive and informative. Increasing customer engagement, boosting purchase confidence, and reducing the likelihood of returns, these innovations offer a powerful advantage for retailers looking to optimize their business strategy.

Kosta Popov is the CEO and founder of Cappasity, the company providing an easy and scalable platform for creation, embedding and analysis of 3D and AR/VR content.