Flight Logistics Group Ltd

Latest News

Could Augmented Reality help online retailers reduce the rising cost of returns?

September 11th, 2019


Apart from improving sales, and getting brands to stand out from the crowd, the biggest challenge facing online retailers currently is the rising cost of items being returned. The ‘try before you buy’ culture makes it all too easy to order items without a firm commitment to either keeping or eventually paying for it. So, could investing in an AR App for some products be the answer?
 

 
What is AR?
AR stands for Augmented Reality, a technology that enables the interaction between the user, the real world, and a computer-generated environment or product. In online retail terms, this would mean the ability to see how a pair of glasses or tone of makeup would look on the purchaser’s actual face, or how a piece of furniture would look in situ in their living room.
 
It differs from Virtual Reality as VR shuts out the real world.
 
How can this help reduce returns?
According to a survey published by Invesp, 67% of shoppers check the returns page before making a purchase. Knowing that they can easily reject and return an item means that they can place an order with the slimmest of commitments. Something must be done by retailers to offer a more engaging and effective way to experience the suitability of a purchase online in order to make an informed decision.
 
Therefore, AR is the perfect method. Online retailers can develop an app that allow the consumer to assess a virtual representation of the product they want to buy. They can even include aspects that allow the purchaser to tailor the product to their needs. Knowing that a pair of glasses fits their face shape and hair colour lessens the potential of disappointment and rejection on its arrival.
 
‘Try before you buy’ can happen online and before logistics are engaged.
 
Some organisations using AR
ASOS
Amazon
Ikea
L’oreal
Gap
Nike
Lacoste
 
Flight Logistics offers full support to businesses that sell online, including warehousing, order processing, pick and pack, global shipping and of course returns management. Contact us for more information.