You don’t need to be an e-commerce retailer to understand that a company’s primary focus is transforming the shopping experience.
There are nearly 2.2 billion online shoppers, so it’s clear to see the potential for providing a more immersive shopping experience. But the idea of the Metaverse encountered resistance from both retailers and shoppers.
The biggest reason being a lack of understanding of how this augmented reality will truly change how we purchase goods and services. That’s why we want to look closely at the key characteristics of the Metaverse and whether or not it will revolutionize e-commerce.
What Is the Metaverse?
Even if you overheard a discussion about the Metaverse, you might not know precisely what it’s all about. The ambiguity is perhaps somewhat intentional because the term "collective virtual space" leaves room for interpretation.
But probably the most straightforward definition is that the Metaverse is a new version of the internet. Another way to describe it is that the Metaverse is a virtual reality simulation designed for different purposes. It’s also important to highlight that the idea of Metaverse is now new.
VR shopping simulation is a notable trope in sci-fi movies and TV shows, but this is the first time we have seen it come to a realization. Also, several emerging technologies have made the Metaverse possible.
- Web3 – Decentralized web apps which enable users to control their data and identity.
- Spatial computing – A technology that enables users to experience both the physical and digital world simultaneously.
- Digital twin of a person (DToP) – An ability to mirror an individual in multiple digital spaces.
- Digital twin of a customer (DToC) – A subset of DToP and a virtual representation of a customer that learns to anticipate behavior.
But what are the main characteristics of the Metaverse? Let’s discuss a few of the most important factors.
- The Metaverse is social and interactive.
- It is designed for users to encounter each other and spend time together shopping or doing different activities.
- Another vital characteristic is effortless access. All users need are virtual reality headsets and mobile devices to enter the Metaverse.
- The Metaverse contains fully functional economies that run on NFTs and cryptocurrencies. The main goal is to transform how people buy and sell. Therefore, the link between the Metaverse and e-commerce is inseparable.
The State of e-Commerce in 2022
According to Mark Zuckerberg, the Metaverse is only in its early stages. The roll-out process will likely take up to a decade as the company needs to iron out technical issues and work on their marketing strategy.
But to understand how the Metaverse will change e-commerce, we must review the state of this industry in 2022. So, what have been the most dominant trends? Of course, mobile shopping continues to be the standard, but we’ve also noticed the switch to more personalized shopping experiences.
Companies that focus on understanding their customers are more likely to thrive. Another critical trend is social e-commerce. Many consumers rely on Instagram and TikTok feeds for shopping suggestions and news about important sales.
Finally, augmented and virtual reality gained a prominent role in e-commerce. All three trends give us an insight into how e-commerce will change as the Metaverse grows.
6 Ways the Metaverse Will Change e-Commerce
The connection between the Metaverse’s success and e-commerce is clear, but it addresses every way this virtual reality platform will affect such a massive industry.
More Immersive Online Shopping
What is the one thing all retailers want? To reduce the number of abandoned online carts. According to Shopify’s internal research, nearly 70% of online shopping carts are abandoned. That’s a staggering figure, but how can the Metaverse impact this issue?
By merging offline and online shopping, thus creating a more immersive experience, it allows consumers to become more confident about what they’re buying. They can try on glasses and clothes and check for quality before committing.
In the past, shoppers may have filled their online cart with items they liked but changed their minds at the last minute. Unless you know the retailer’s business practices well, clicking that "Confirm Order" button is always a slight gamble. Fortunately, the Metaverse is planning to eradicate this issue.
More Social Interactions
Whenever social media companies talk about community building, people are rightfully skeptical. But we all know that online shopping is a lonely experience.
Sure, many prefer that and focus on its convenience. However, many others miss having the opportunity to go out with friends and shop. Obviously, you can still do that, but meeting people in person requires more time, sitting in traffic, and physical exertion.
Still, socializing is important, and the Metaverse provides an opportunity to make e-commerce, in general, a more sociable experience.
Users can see others and their reactions and talk to them as if they were together in person. In many ways, the Metaverse will narrow the divide between social media and e-commerce, two very powerful forces.
Fast Growing Revenue Stream for Retailers
Because there are more consumers than e-commerce retailers, it’s natural to keep the focus on how the Metaverse will change the industry from a consumer’s perspective. But let’s face it: profit is the bottom line for all corporations.
Hence, it’s vital to understand why so many brands are rushing to take their place in the Metaverse. We’ve already touched on this when discussing how immersive the Metaverse is designed to be. But the AR technology isn’t only there to help users feel like they’re in a brick-and-mortar store, choosing an outfit.
E-commerce retailers understand that this commitment to a product results in a fast-growing revenue stream. They are incentivized to see the Metaverse develop as fast as possible and perfect their virtual reality.
Affordable Market Research
Retailers have another reason to feel happy about the Metaverse’s expansion. They can conduct thorough market research without having to invest in expensive analytical tools that aren’t always correct.
The Metaverse may answer the essential e-commerce question of them all: "What do customers really want?" If an e-commerce business has the opportunity to test a product before launching it, they can add specific adjustments and tweaks to boost their marketability.
Granted, the same principle works in the opposite direction. Customers can test products before they choose to purchase them. Imagine having to go to 10 different stores to try on 10 different hats.
It sounds pretty exhausting. But the Metaverse removes that effort entirely. The perfect example is the 2022 Metaverse Fashion Week, which showcased how this feature makes an impact.
Personalized Shopping
The personalized shopping experience is the goal for both retailers and customers. But traditionally, that has been the hardest to achieve. For e-commerce businesses, creating personalized and inclusive products requires more investment and, in return, higher prices for customers.
Therefore, personalization is not yet a large part of e-commerce, though the Metaverse may change that. Ideally, customers can make adjustments and submit requests for personalized items in real-time and with access to more tools.
The possibilities are almost endless when it comes to the customization of products, and we eagerly await the changes the Metaverse will bring.
Global Reach
Online shopping already has a global reach, but the Metaverse can take that to another level entirely. If you’re planning to start an e-commerce business, you probably want the Metaverse to succeed.
Your virtual store would be available to shoppers worldwide from day one. You don’t have to worry about reaching specific geo-markets. As long as the Metaverse has access to a particular area, so will your e-commerce business.
E-Commerce Companies Already Benefiting From Metaverse
Looking at e-commerce giants and their relationship to the Metaverse is perhaps the best way to understand how this augmented reality affects the industry. But what existing examples offer valuable data?
For example, Samsung recently created an immersive world inside the Metaverse, called Samsung 837X. The store is fully modeled after Samsung’s flagship store in Manhattan.
But in the Metaverse they can find additional features such as Customizable Stage and Connectivity Theater, both of which provide a more immersive customer experience.
Luxury brands like Gucci have sold expensive handbags in the Metaverse. Furthermore, athletic apparel brands like Nike and Adidas also have grand plans for the Metaverse.
But there’s another way brands develop sales strategies in the Metaverse. The combination of events like concerts and movie premieres can drive a significant revenue in merch distribution.
The perfect example is the 2020 Lil Nas X concert in the world-building game, Roblox. Over 30 million viewers enjoyed the concert and bought millions of virtual t-shirts.
Is Metaverse Right for You?
While e-commerce brands like Nike or Samsung are already taking advantage of what the Metaverse has to offer, smaller enterprises are mostly observing its development. That’s perfectly fair as well-established multi-billion dollar corporations have room for experimentation and can test the limits of the Metaverse.
But it’s also safe to say that the Metaverse is still in its early stages of development. Even the creators are primarily focused on what the Metaverse will be able to do in the future and not so much on what you can do with it now.
Most e-commerce businesses will eventually benefit from the Metaverse, but for some that will be sooner rather than later.
However, the potential for e-commerce in the Metaverse is immense and will almost certainly revolutionize how people shop and retailers sell.
