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January 2, 2025
Will AR Tools for E-Commerce Go Mainstream in 2025?
While artificial intelligence continues to capture all the hype, augmented reality (AR) has landed on several lists of predictions of retail technologies expected to break out in 2025 due to its potential to bridge the gap between physical and digital shopping experiences.
Shopify listed “Augmented reality to become mainstream” among its predictions for online selling for 2025.
“Once a futuristic-sounding concept used only by gamers and young Snapchat users, AR is now the key to helping consumers visualize products they may not be able to see in person, making it easier for them to make a decision,” said Shopify in a blog entry. “Due to its ease of use, augmented reality seems set to grow in popularity.”
The commerce platform noted that AR is particularly effective in industries like fashion and home décor that enable online shoppers to virtually bring fitting rooms or showrooms to their homes. Shopify added, “Social media is also a key driver of AR usage. People often first experience AR when they try a filter or lens on Snapchat, Instagram, or TikTok. These filters allow people to try on makeup or clothing before they buy online.”
In a blog entry, Scott Lundstrom, senior industry strategist at OpenText, cited “immersive augmented and virtual reality experiences” among his five trends set to transform the retail and CPG space in 2025.
“In 2025, these technologies are no longer novelties but integral components of retail and CPG marketing strategies,” wrote Lundstrom. “AR-enabled mobile applications allow consumers to virtually ‘try on’ clothing, visualize furniture in their homes, or see how cosmetic products might look on their skin. CPG brands are using AR to provide interactive product packaging, enabling consumers to access detailed product information, ingredient sourcing, and sustainability credentials with a simple smartphone scan.”
Lundstrom added, “Virtual reality experiences are creating immersive brand storytelling platforms. Consumers can now take virtual factory tours, understand product manufacturing processes, and connect with brands on a deeper, more experiential level.”
In its “The Future of E-Commerce: Trends to Watch in 2025” report, London-based digital agency Appetite Creative likewise called out the “try before they buy” benefit of AR tools, whether testing how a piece of furniture looks in an online shopper’s living room or how a pair of glasses fits their face. The agency stated, “Brands leveraging AR are seeing increased conversion rates and reduced return rates, as customers gain greater confidence in their purchases. Interactive solutions like these are set to redefine the future of e-commerce.”
AR’s usage as an e-commerce tool has been slower than many expected given the technology’s promise to integrate digital and physical realms to create a new dimension of interaction. Tim Cook, Apple’s CEO, predicted in 2016 that AR would become the next major computing platform after the smartphone and be more relevant than virtual reality. He said at the time, “I do think that a significant portion of the population of developed countries, and eventually all countries, will have AR experiences every day, almost like eating three meals a day. It will become that much a part of you. A lot of us live on our smartphones.”
A 2021 survey of 100 technology executives from CGS found the biggest challenge they faced in implementing AR technology was financial constraints, cited by 33%. Other hurdles were C-level buy-in, cited by 11% as the largest concern around AR implementation; subpar staff skills and generational learning curves, cited by 10%; and data privacy and regulatory concerns, 5%.
Only 8% cited concerns around ROI, with 25% citing the potential for employee training as one of the most important uses of AR technology.
Discussion Questions
What’s still holding back augmented reality from becoming a bigger e-commerce tool for shoppers?
Which applications do you see becoming more commonplace in the near term for retail?
Poll
Loading …BrainTrust
Shannon Flanagan
VP|GM Retail & Consumer Goods at Talkdesk
Brian Numainville
Principal, The Feedback Group
Mohamed Amer, PhD
CEO & Strategic Board Advisor, Strategy Doctor
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While I can’t help but feel solidarity with his name, I think Mr, Lundstrom pushes the envelope a bit too far: CPG strikes me as a less likely venue for a breakout…all that bandwidth going into showing your pearlies will be whiter-than-white really doesn’t do much more than a picture does. As for broader – and IMHO, more useful – applications, like fashion: growth, sure…but I’m never partial to the phase-shift idea.
AR is perfect for some segments, like furniture and housewares, but not so much for CPG. I’ll predict that demand will continue to be lukewarm.
The promise of Augmented Reality in retail has been around for many years. While it has received slow consumer adoption, the improvements in user-friendly interfaces, better 3D models of products, and greater access to high-speed broadband will increase AR’s adoption rate. The ROI challenge remains. However, creative retail CFOs, in partnership with emerging platforms, will find ways to greenlight AR projects that enhance and differentiate customer engagement with immersive experience, hyper-personalization, and improved conversion. Retailers can also expect to reduce returns, improve margins, and better inventory management.
This technology has been around for ages. Retailers like IKEA and Target have used it for things like furnishings for an age. I don’t see any reason why it will suddenly go mainstream in 2025. It might become somewhat more popular and used, for sure, but the progression will be incremental rather than dramatic.
While AR technology has been around for a while, what many are missing is that AR coupled with AI brings the possibilities to a whole different level. Glasses can now be augmented with heads up displays, audio, cameras, and so on. So I do think that we are moving towards the rapid growth of AR tech in the near future across an array of industries and use cases.
Yes, AR has been around for a while but it is also continually improving and as it does, adoption will accelerate and new use cases will emerge. I’m bullish on AR, particularly as the digital rethinking of brick-and-mortar unfolds. AR is hands down the most compelling bridge between virtual and physical worlds.
As many have already said, I think it’s unlikely AR will have a breakthrough year in 2025. Instead it will continue to become more widely used as the technology improves and it’s interjected at the right moments in the shopping journey. I do believe one day it will be widely used in relevant categories. Surprised to see that 60% of votes in poll results are “somewhat doubtful.”
AR works well for certain products like furniture, but it won’t suit every category. Shoppers still gravitate toward in-person experiences to touch, feel, and try products – things AR can’t fully replicate.
It will expand. Much of it will not be optimal. Those who get it right will get the higher close rate and lower return numbers cited in the article. Not for everyone but there are large audiences that will use it as a point of differentiation and way to reduce purchase risk when selecting certain retailers for certain categories.
More brands will utilize AR filters to build more online sales in 2025 with AR filters easily accessible on Instagram, Snapchat, and TikTok. I do not view growth coming from usage in the CPG industry, in as much as with clothing, and other “try-on” items. In that regard, I’m excited about the future.
Virtual try-ons of apparel, cosmetics, and accessories – prior to shipping – are one of the most compelling uses of AR filters.
Through virtual try-ons, AR filters can effectively convert casual website visitors into repeat purchasers when seamlessly integrated into existing online touchpoints. Every day, major brands demonstrate their commercial viability online and through social media.
Even though AR adoption is still relatively new, it remains one of the most promising technologies for driving e-commerce sales growth. Brands that empower clients with easy-to-use AR filters to empower risk-free virtual transactions can gain significant competitive advantages in an industry where expectations for interactive retail experiences are rapidly evolving.
With increased shopping confidence, consumers don’t need to worry about sizing or color mismatches. The convenience of trying on items anytime, anywhere is available to them. As a result, they are capable of virtually visualizing hard-to-envision items, such as glasses, and evaluating their fit and style
By educating customers, brands are able to increase conversion rates and reduce returns, and interactive features on websites and mobile apps keep customers engaged. Insights are gained into what merchandise customers gravitate towards virtually. With fewer returns and misshipments, brands also benefit from better inventory management and supply chain management.
The year 2025 will be a rapid growth year for AR, even if not for CPG types of goods.
In my opinion, augmented reality (AR) still faces major challenges due to high implementation costs and inconsistent user experiences. Retailers haven’t fully embraced it because it requires investment in technology and infrastructure. While AR holds potential, it’s not yet a smooth enough experience to make it a mainstream tool in e-commerce.
I think we’ll start seeing AR being used more effectively in fashion, home décor, and cosmetics, where trying before buying has a clear advantage. But until the technology improves and becomes more affordable for all brands, its impact will remain underutilized.