What if we tell you a method to decrease your e-commerce return rates? Exactly! This article will look at how Machine Learning and Augmented Reality can help you reduce return rates. We will also see the advantages of implementing these solutions.
But what are the causes of high return rates?
Understanding the Problem of High Return Rates
Online shopping has transformed the way we buy and sell goods. However, with the convenience of online shopping comes the challenge of dealing with product returns. High return rates are not only inconvenient for you, but they also add up to increased costs that have an impact on your profits.
Fortunately, technological solutions such as Machine Learning (ML) and Augmented Reality (AR) can help you reduce return rates.
But before we get into the solutions, why do you have high return rates? Several reasons can explain this, but the main one is incorrect sizing.
The incorrect sizing — due to the wrong product description — is a problem that it’s challenging to solve. But you can adopt different methods to avoid return. Let’s see them.
How can you use Augmented Reality and Machine Learning to reduce return rates?
Augmented Reality can resolve the issue of high return rates. How does it do? AR superimposes the 3D virtual product on the customer’s body or in their space. That helps the customers to make better decisions about your items and their size.
For example, IKEA’s Augmented Reality app lets customers preview home furniture. It gives them a better idea of the product’s size and how it will look in their room.
Instead, Machine Learning algorithms are a powerful tool that can be used in various ways.
For example, ML can analyze customer data to make personalized size recommendations based on customers’ previous purchases. Also, soon, you will be able to use Machine Learning and Augmented Reality together. These technologies will allow you to advise the item’s size to the consumers when they are experiencing AR.
So, What are The Advantages of Using AR and ML?
Implementing Machine Learning and AR solutions can reduce return rates, improve customer satisfaction, and increase sales.
As a result, you can retain customers and increase their lifetime value by providing a better shopping experience. For example, ASOS reported a 50% reduction in return rates after implementing AR technology that allowed customers to virtually try-on clothes.
Is it all that easy and beautiful?
Of course not. If you want to implement these solutions, you need to invest heavily. But by making it, you will receive all the advantages, like an increase in your sales and a reduction in your dropout and return rates. As a result, this will increment your profit. What if this doesn’t work?
Do you want to make a trial before? You can. Consider starting by implementing Augmented Reality solutions in your e-commerce without Machine Learning.
Let’s start with Augmented Reality
Implementing Augmented Reality as your business’s first technology will help you reduce your return rates and not only. You will see an increase in your customer engagement and experience, sales, and a reduction in dropout rates.
In the future, this technology will continue to improve by letting you do more things, but it is helpful to implement them now. In fact, by implementing it now, you will be a step above your competitors, and the consumers will choose your e-commerce to buy things.
Of course, to do that, you need to understand better the Augmented Reality technology. For this reason, you can download this free paper (👇🏼) that will give you more insight into AR and its impact on return rates.