Is Metaverse the Future of eCommerce Industry?
Technology is revolutionizing the way businesses work with the retail landscape experiencing a massive transformation with the introduction of the internet. In the past two decades, we have witnessed a remarkable transition from offline to online shopping and a growing number of eCommerce activities.
New technologies, like artificial intelligence, blockchain, or the Internet of Things, have given rise to a futuristic concept called Metaverse. This technology is reforming the eCommerce industry like never before.
In this post, we have discussed Metaverse and how it will affect eCommerce business. Also, how you can take the assistance of an app development company in the UK to build your eCommerce app and website.
What is the Metaverse?
The term Metaverse was first coined by Neal Stephenson in his 1992 science fiction novel Snow Crash. It described a realistic virtual world, accessed through goggles, where people represented themselves with personalized avatars and interacted in the immersive virtual space.
But now, this sci-fi concept has turned into a reality because of a revolutionary technology called Metaverse that is emerging in the present time.
Metaverse is an immersive digital universe made with the combination of virtual reality and mixed reality worlds that you can access through a browser or a VR headset. It will allow you to have real-time virtual experiences like working, playing, conversing, shopping, travelling, or learning, all from the comfort of your home.
Metaverse isn’t completely developed, but it is gradually coming into shape. Gartner reports that by 2026, 25% of people will spend a minimum of one hour daily in Metaverse.
Bloomberg says that the Metaverse technology market is expected to be USD 800 billion by 2024 and will be the next big tech platform.
Not only this, big tech and eCommerce giants like Microsoft, Facebook, Google, Apple, Amazon, Walmart, etc., are all trying to develop Metaverse and tap into its infinite power.
Mobile app development in the UK and around the globe is aiming to build a Metaverse. All of these show the craze for this innovative technology in the present market.
The Technologies that Power Metaverse
Metaverse ends the problem of long distances and brings people together in an immersive virtual world. We saw how it has the potential to completely revolutionize the way eCommerce businesses work. But Metaverse doesn’t do all this alone, there are few technological pillars that act as its foundations. Here are five such cutting-edge technologies:
1. Artificial Intelligence
Artificial intelligence is one of the most critical innovations powering the Metaverse, which plays a crucial role in maintaining technological efficiency. AI uses complex algorithms that provide machines with the working and problem-solving capabilities of human beings. Creation of personalised and realistic 2D or 3D avatars, automated assistance to solve user problems, language processing and translation, monitoring servers for improved cybersecurity, etc., are some examples of how AI supports Metaverse.
A decentralised virtual world can’t exist without a technology called a blockchain. It is an intelligent system that records transactions and tracks assets across a computer network.
Blockchain helps Metaverse have a powerful decentralized infrastructure for a secure and reliable virtual ecosystem. This helps keep track of changes and ownership of virtual assets.
Information like user data, transaction details, and ownership information is encrypted, which no third party can steal.
3. Augmented Reality and Virtual Reality
AR and VR are the two essential building blocks of Metaverse. These two technologies facilitate an immersive and realistic 3D digital space for virtual interactions.
Virtual reality creates a computer-generated simulation of a fictional world that can be accessed through VR headsets.
And augmented reality creates a fusion between the real and virtual worlds using a smartphone. VR helps create a connected experience, whereas AR extends the scope of VR to provide an immersive experience.
4. Internet of Things
Internet of Things or IoT is a network of connected physical objects using sensors to collect and exchange data with other systems over the internet. It connects real-world objects and devices with sensors to the virtual world of the Metaverse.
These devices continuously collect and disseminate data, helping Metaverse effectively replicate the real world. Since the real-time data of IoT promotes real-time simulations, the events happening in the virtual ecosystem become more accurate.
5. 3D Reconstruction
Since Metaverse promises an immersive virtual experience, it has to ensure that the objects and environment in its ecosystem appear realistic. That’s where 3D reconstruction comes in. It is the method of capturing the shape and appearance of real objects and recreating them in a virtual 3D space. This technology helps create a realistic 3D environment that follows the fundamental laws of Science.
How is Metaverse Affecting eCommerce?
With the support of the above five technologies, Metaverse provides a seamless virtual experience allowing customers to easily find and buy what they want. Many giant companies have already implemented this technology to provide a better purchasing experience. They help customers to examine the product and experience the quality before making buying decisions.
For example, Amazon has introduced the Metaverse technology to create an AR shopping tool called Room Decorator. This enables you to see how a decorative item or furniture will appear in a space just by using your phone or tablet.
Mark Zukerberg rebranded Facebook as Meta with a mission to build a Metaverse and connect people and businesses throughout the world.
Warby Parker has built an app that lets you virtually try their frames so that you can get a better idea about how it fits on your face. It shows how Metaverse will change the traditional click-and-buy method of online shopping to experience-and-buy.
Global clothing brands like Gucci, Adidas, Nike, etc., are also trying to develop Metaverse stores and improve sales. App development services in the UK are focused on creating effective algorithms for this technology.
How eCommerce Businesses Will Benefit from Metaverse
Ecommerce will have remarkable expansion as online and offline commerce will merge into one. It will improve the current purchasing practices, enhance the customer experience and help them make good buying decisions.
Here we have shared how the Metaverse technology will help eCommerce businesses grow worldwide:
1. Enhance Customer Experience
Present-day online shopping fails to provide personalised products to customers and is limited to only product discounts and recommendations. But because Metaverse is not affected by the limits of the physical world, it opens a vast opportunity for businesses by helping them provide enhanced customer personalization experiences.
In addition, customers can easily examine and try products like glasses, clothes, shoes, home decor, etc., before buying them all from the comforts of their home. These products were difficult to buy in an online store and had higher return rates, but with Metaverse, things are changing for the better.
2. Develop Customer Relationships
An eCommerce business in Metaverse can make better relationships with customers by letting them participate in virtual brand activities and product launches.
Brands can also create virtual products to test if they will succeed in the actual market. The number of customers showing interest in these virtual products will help businesses determine the production quantity.
This way, the Metaverse will allow enterprises to understand the need of customers to serve them better. Moreover, a company can launch unique products for only the best customers to further deepen the relationship.
3. Boost Business Growth
Metaverse facilitates better product visualization by enabling customers to see and touch 3D products. Because they examine and be confident about the product quality before buying, they can make an informed decision about their purchases.
A Shopkick study shows that 72% of customers who shop in-store say they love to touch, try, and see the physical products.
Studies also say that customers are ready to pay 40% higher for a product they can test in 3D. This shows how Metaverse builds customer trust and increases sales for a company.
Metaverse has a vast potential to wipe the gap between online and offline commerce, uniting them in an immersive virtual ecosystem. It will utilize the technological power of AI, blockchain, IoT, augmented and virtual reality, and 3D reconstruction to reshape the eCommerce industry for better customer experience and enhanced business profitability.
We at Ficode(an app development company in the UK) believe that one has to remain updated with the technology in the present-day market. That’s why we always inspire our talented app developers in UK to keep up with the latest technological trends and build advanced websites and apps for businesses worldwide.
Fiocde is a leading company that offers mobile app development in the UK, having vast experience in software solutions. Whether a mobile app, website, IoT, or eCommerce development, we always ensure the highest standards that build a solid technical foundation for your business.
Get in touch with us to get the best Mobile App Solution in the UK and know how we can help you grow your business.