Virtual shopping is the next step for the retail industry, with big-named brands, such as Nike, Louis Vuitton, and Samsung, already offering enhanced digital shopping experiences via virtual reality platforms. But do consumers see the metaverse as the next big thing in eCommerce trends?
In this article
The metaverse and its role within the eCommerce market is rapidly growing, thanks to the popularity and adoption of AR technology. Virtual shopping is a new way for businesses to engage with their audience and entice consumers into trying products on a more personalised level. The fun experience of shopping in the metaverse may also help companies to understand customer behaviour better and elevate the customer journey.
Capterra’s first article in this two-part series looked at how many Australians are familiar with and interested in trying the metaverse in general. Here we ask the same 1,001 consumers how they feel about virtual shopping as the next phase of eCommerce. Are Aussies interested in metaverse shopping? The full methodology can be found at the end of this article.
Consumer attitude towards online shopping
Nowadays, online shopping is popular as most people tend to have their smartphone to hand and can usually buy products in only a few clicks. According to Capterra’s research, 37% of survey-takers said they prefer online shopping compared to the majority (43%) who prefer to shop in person.
Unsurprisingly, when looking at preferences per generation, 48% of Generation Z and 44% of millennial respondents prefer to shop online, compared to just 28% of Generation X and only 11% of baby boomers. This highlights that the younger generations, or the consumers of the future, may be more interested in metaverse shopping.
Saving time is the top reason why people prefer online shopping, as the majority of respondents in this group (59%) said that ‘it’s quicker than in-person shopping’ when asked to select up to three reasons for their preference. This was followed by online shopping making it ‘easier to find products’ (54%), and having a ‘wide range of options to choose from’ (44%).
Online shopping is a type of eCommerce, encompassing a wide variety of data and tools. Capterra has recently looked at different eCommerce trends, from the subscription-based model and text-to-shop to checkout-free shopping. Whether consumers subscribe to streaming platforms or use applications with automatic payments, these tools are similar in making online shopping convenient for consumers, often with exclusive deals and discounts.
So is the metaverse next in the evolution of eCommerce tools? The concept of a busy customer being able to try on clothes from the comfort of their own home sounds appealing. But what do consumers think?
Nearly half of Aussies are interested in virtual shopping in the metaverse
Nearly half of survey-takers (48%) said they would be interested in virtual shopping in the metaverse. About a quarter of respondents (26%) said they wouldn’t be interested, and a further 26% said they were not sure. This shows that most people are curious about the metaverse, highlighting the new world of opportunities it could open up for both businesses and consumers.
We asked those in the group who are interested in virtual shopping what type of products they would buy in the metaverse. ‘Clothes’ were the most frequently selected item (77%), followed by ‘electronic goods’ (55%), and ‘video games’ (39%).
eCommerce sites and high street and luxury brands are experimenting with their own metaverse platforms. In 2022, Decentraland held Metaverse Fashion Week (MVFW), with brands such as Dolce & Gabbana and Estee Lauder participating. Whilst the event didn’t run 100% smoothly, the overall feedback from participating brands was positive, meaning organisers want to do it again next year. As the technology is still developing, some feedback suggested that the user experience needs to improve as graphics were rudimentary. Despite this, virtual fashion events can reach a larger audience than physical events or in-stores. This is one of the main benefits of the metaverse in eCommerce, as companies can connect with customers in an immersive way.
Advantages of the metaverse in eCommerce
From the consumer perspective, virtual shopping in the metaverse merges the speed and convenience of online shopping with the personalised experience of shopping in a physical store.
We asked survey-takers what they thought to be the advantages of shopping in the metaverse. Being able to ‘test products using AR’, such as trying on clothes, or seeing furniture in your house, was the most frequently cited advantage (56%). This was followed by ‘having a fun experience’ (52%) and being able ‘to see the newest products’ without queuing or being in the store (52%).
How businesses can benefit from the metaverse
The metaverse has the potential to revolutionise the business operating model of eCommerce companies. The following are some examples of how:
1. Brands can better understand customer behaviours: Companies can gain insight into how their customers interact with and respond to their marketing strategies and performance, providing more tailored recommendations.
2. Businesses can expand customer bases: The metaverse platform may enable customers to find exactly what they are looking for and provide an immersive experience in the process. Shoppers can have fun whilst making informed purchase decisions.
3. Companies can incorporate storytelling into the experience: Brands can connect with customers in an innovative way involving gaming. For example, Gucci opened a temporary fashion store in Roblox where people were educated about the brand’s heritage in a virtual, artsy garden.
4. Businesses can take advantage of virtual events: Brands can expand their audiences by organising events, such as concerts or press conferences. This can provide networking and participation opportunities for clients and customers.
5. Transactions can be made with digital currency: Buyers and sellers can use crypto wallets to do business in the metaverse without linking the eWallet to a physical bank account.
The disadvantages of metaverse shopping
Capterra asked survey-takers who are interested in using the metaverse for shopping what they thought the disadvantages would be. ‘Lack of trust in personal data’ was most selected (46%), followed by a ‘lack of protection from product offerings’, such as scam artists and fake brands, (45%) and the ‘expensive equipment’ to access it (44%).
These disadvantages are similar to the challenges of using virtual platforms that were identified in part one, which also saw ‘personal data security’ and ‘potential scams’ at the top of the list. It is essential that eCommerce platforms build trust with the consumer, especially when collecting and storing personal data.
A previous survey by Capterra found that 63% of shoppers are nervous about sharing their personal information with online companies. But online retailers being open about their data use policies can help with customer loyalty and trust. Cybersecurity tools are also crucial to protect businesses against data theft and third-party usage.
‘Retail’ rated in top three sectors consumers most associate with the metaverse
Whilst the metaverse can be used across a range of sectors, the top three that survey-takers associated the platform with the most were ‘technology’ (81%), ‘games’ (79%), and ‘retail’ (35%).
Within the last decade, the retail industry has been using an omnichannel approach to combine both digital and physical worlds through the likes of social media, chatbots, applications, and newsletters. The metaverse may provide a next-level multisensory experience for customers as it attempts to recreate the in-store experience.
We asked survey respondents if their perception of their preferred brand would change if they offered products and services in the metaverse. Most said it wouldn’t change (62%), whilst over a quarter of survey-takers said it would improve their brand perception (27%). Only 11% said it would have a negative impact.
In summary
Capterra’s research shows a sizeable number of Aussies are interested in trying metaverse shopping. When asked whether they thought virtual platforms could take over eCommerce, 35% of survey-takers said they think it will become the standard for shopping. Whilst a further 40% said they did not think it would take over eCommerce, they did say that it will become as popular as online and traditional shopping. 11% of Aussies said the metaverse won’t take over eCommerce but will be necessary for other sectors (e.g., the gaming industry). Only 7% said it would disappear.
It is important that companies, particularly retailers, explore the possibilities of what the metaverse can do for the customer experience. But as it’s still in its infancy, some hurdles may have to be overcome to persuade customers to use it for online shopping.
Only 8% of Aussies have accessed the metaverse so far, and we don’t yet know what the behaviour and experience will be of those interested in trying it. SMEs will need to keep a close eye on how larger companies are faring on these platforms and evaluate the risks and benefits for their businesses. Overall, according to consumers, it looks like the metaverse has a future as one of the latest eCommerce trends. It’s catapulting the retail industry into a new era that businesses will want to keep up with.
Methodology:
Data for Capterra’s Metaverse Survey was collected in October 2022. Results comprise responses from 1,001 Australian participants. The criteria to be selected for this study are as follows:
- Australian resident
- Understood Capterra’s definition of metaverse: ‘The metaverse is a collective virtual 3D shared space, created by the convergence of virtually enhanced physical and digital reality. A metaverse is a continually existing digital environment that provides enhanced virtual immersive experiences. The most common ways to access it are via augmented reality (AR) and virtual reality (VR).’
