Virtual Commerce: The Future of E-Commerce

The next big development in online shopping is virtual commerce (v-commerce), which combines such immersive technologies as virtual reality (VR) and augmented reality (AR) with the existing e-commerce to provide highly interactive and personalized retail experiences. Virtual commerce can transform the interactions between consumers and businesses and redefine the way business and consumers relate, as it will introduce virtual try-ons, social shopping in virtual worlds, and exploration of products in a 3D fashion.

What Is Virtual Commerce?

Virtual commerce is the process of purchasing and selling goods or services in the deep digital space through VR, AR, and high-quality visual 3D. In contrast to the classic e-commerce, where the consumer is engaged with a product with a product listing, v-commerce provides the consumer with the chance to interactively and realistically engage with the product and the store. Certain examples are a walk through a virtual storefront, having virtual clothes/ accessories, or a simulation of their homes in 3D fashion.

Such a combination of virtual and real retail enables a higher level of consumer confidence and interaction and builds a virtual experience that is more similar to face-to-face shopping and is available online.

Uses and Applications

• VirtualTry-Ons: Fashion retailers allow consumers to visualize the way clothes, glasses, or accessories will fit via VR/AR.

• Virtual Storefronts: These are interactive digital boutiques, which provide avatar-based exploration and social shopping experiences.

• Home Planning: Furniture stores allow the customers to see the products in their real life environment.

• Product Customization: Buyers customize products in 3D interactive controls.

• B2B Interactions: Virtual Modeling and complicated product visualization facilitate the purchase of industrial and wholesale products.

• Social Shopping: Virtual worlds are the integration of shopping and socialization and attending an event.

The future of Virtual Commerce in the future of E-Commerce

Virtual commerce will improve product engagement through richer and immersive experiences that will reduce uncertainty significantly, increase the conversion rates and decrease the return rates. It assists the brands in building stronger relations with customers by being interactive and personal. This emerging retail format also creates working efficiencies and fits effectively in a changing consumer environment that is technologically empowered.

Pros of Virtual Commerce

• Online shopping that is interactive and entertaining.

• Enhanced product display into knowledgeable buying.

• Improved individualization and inter-socialization.

• Physical unrestricted access to the world.

• Greater operational efficiencies among the retailers.

Cons of Virtual Commerce

• Costs of setting up and producing content are high.

• Reliance on VR/AR devices, restricting access of all users.

• The technical issues such as connectivity and compatibility.

• Virtual environments and privacy and security issues.

• The barriers to adoption of some segments of consumers.

Forecast of Market size of Virtual Commerce (2025 - 2035)

One of the growth drivers in the larger digital commerce market is virtual commerce, which is expected to increase in size, taking its current amount of approximately USD 4.7 trillion, to approximately USD 20 trillion at a CAGR of approximately 15.3. This growth is projected to be driven by the market in South Asia, China, India, and the US, which will be fuelled by innovation in immersive retailing, AI, and frictionless payment solutions. Major Stakeholders such as Shopify, Microsoft are highly investing in virtual commerce ability in order to capture a portion of this booming industry.

Lifestyle Technological Trends that are defining Virtual Commerce

A number of technology trends are driving the revolution of virtual commerce:

• Immersive Technologies (VR & AR): The development of virtual shops, try-ons, and product preview to fill the loopholes between online and offline shopping.

• Artificial Intelligence (AI): Driving personalized recommendations, chatbots, shopping assistants, and effective inventory management.

• 3D Visualization: Providing realistic-interactive product models that are more confident and less returned.

• High-level Connectivity (5G and Edge way): Providing minimal latency and quality real-time virtual communication.

• Personalization and Automation: Dynamically tailoring shopping experiences and automating the components of the back end.

• Blockchain & Secure Payments: Improving the visibility of transactions, its security, and the implementation of new payment channels such as cryptocurrencies.

• Social/Gamification: Adding community and influencer marketing, live shopping events and interactive rewards to increase engagement.

Global Virtual Commerce Stores & Platforms

• AliExpress: It is a giant international e-business with a diverse product portfolio and easy online shopping capabilities that deal with buyers around the world.​

• Amazon: The dominant online retailer with the ongoing integration of the AR functions and the intention to create virtual showrooms and shopping experiences.​

• JD.com China: The largest B2C marketplace in China that deploys delivery drones, robots, and VR technology to provide a futuristic shopping experience.​

• Shopee: The greatest mobile-first shopping platform in Southeast Asia that is moving into the direction of virtual commerce and social shopping.​

• Flipkart: The major e-commerce platform in India, which has been increasingly using AR/VR and the visualizations of products in 3D.​

• Rakuten: Japanese company that operates in the global market and tries virtual storefront and digital engagement tools.

Not only is virtual commerce transforming the online shopping experiences, it is also laying the foundation of the future of retail in the world. Its combination of innovative technologies allows reaching a more profound level of engagement with customers and improving the work, and it is available beyond the physical boundaries, which will precondition the development of e-commerce in the upcoming decade and even later.

This changing environment offers retailers and brands the need to evolve fast as they seek to deploy immersive and AI technologies to remain competitive and satisfy increasing consumer demands of deeper, more personalized shopping experiences.