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The Rise Of Augmented Reality

The most striking trend with great potential in my opinion is the rise of augmented reality (AR) in e-commerce. AR allows customers to view and judge products in a highly realistic and interactive way, with innovative features such as virtual try-ons and product customization. This technology is revolutionizing the way that consumers shop online, and early adopters of AR in e-commerce are likely to see an increase in customer engagement, buyer trust and, ultimately, sales. Moreover, this is just the beginning, and I expect many exciting developments as AR develops and integrates with other technologies like virtual reality and 3D web design. So, I believe augmented reality is the next big thing in e-commerce, and applying it effectively will surely offer a major competitive advantage for e-commerce businesses

1. Shopify AR
2. Google Lens
3. ThreeKit
4. Vuforia
5. GIPHY World
6. ARuler
7. Augment
8. IKEA Place
9. Houzz
10. Zapworks
11. YouCam Makeup

 

How Augmented Reality in Ecommerce Can Deliver a More Enticing Shopping Experience

Retail offers numerous opportunities for augmented reality (AR), particularly in the eCommerce sector. While consumers have largely adapted to online shopping, some purchases still require more contextual information, which can pose a challenge for certain product categories. To address this, direct-to-consumer (DTC) furniture retailer Burrow developed an AR app that enables shoppers to customize and place true-to-scale 3D models of Burrow sofas in their own living rooms.

Augmented reality (AR) adds digital elements to the real world that you can still see and interact with. In contrast, virtual reality (VR), like Meta's Oculus Quest, fully immerses you in a completely digital environment, cutting you off from the real world.

Take Pokemon Go as an example of augmented reality. Players would walk around in the real world, looking at their surroundings through their phones, which displayed digital characters in specific locations on the screen.

 

Types of AR Applications

There are a few different types of AR technology, as they provide slightly different types of capabilities. Here’s a general overview of the common types of augmented reality applications to consider:

1. Marker-based AR.

Marker-based AR, also known as Image Recognition or Recognition-based AR, detects an object (the “marker”) in front of the camera and provides information about the object on the screen. When a device using the AR application detects that marker, the app replaces the marker on the screen with a 3D version of the corresponding object. Then the user can view the object in more detail and from many angles.

2. Markerless AR.

Markerless AR doesn’t need to be triggered by a specific object in the real world. Instead, the user can place a virtual object anywhere they wish. You can then rotate and move the object.

3. Location-based AR.

Location-based AR is a type of markerless AR that uses geographic location to display digital content at certain locations. Pokemon Go is an example of location-based AR.

4. Projection-based AR.

Projection-based AR involves projecting synthetic light onto physical surfaces and, in some cases, allowing users to interact with it. Common examples include the holograms we’ve all seen in sci-fi movies like Star Wars.

As of June 2020, 35% of U.S. respondents said they’d used AR to visualize furniture or vehicle customizations.

 

 

E-commerce faces financial & environmental strain from surging returns

The rapid growth of online shopping is contributing to a significant increase in apparel returns, creating substantial challenges for the e-commerce industry. Return orders accounted for 10.4 per cent of total orders in fiscal 2023 (FY23), up from 9.8 per cent in FY22, as per the Unicommerce's India Ecommerce Index Report 2023. Clothing has emerged as the most returned category, with return rates ranging between 25 to 40 per cent.

 

The average return rate for apparel purchased online skyrocketed to 24.4 per cent in 2023, far exceeding the global average of 16.5 per cent, as per a Coresight Research study. This surge is primarily due to the inability of online shoppers to physically assess items before purchase, leading to higher return rates compared to traditional brick-and-mortar stores. The disparity is particularly evident in the US, where online transactions see a return rate of 15.2 per cent—three times higher than the 5 per cent observed for in-store purchases, according to the International Council of Shopping Centers.

The environmental impact of these returns is also considerable. A report by CleanHub indicates that the emissions from fast fashion returns alone are equivalent to those from 3 million US cars annually. As online shopping continues to rise, with nearly half of retailers offering free returns, the financial and ecological costs associated with these returns are becoming increasingly unsustainable.

The financial strain of returns

Apparel returns present a dual challenge for companies: inventory management and profitability. For India-based e-commerce fashion platform Dhartii, managing inventory discrepancies with brand partners is a major hurdle. “Returns can disrupt our stock levels, making it difficult to maintain an accurate inventory and plan for future product needs. This misalignment often results in either excess inventory or stockouts, both of which can impact profitability. Additionally, processing returns incurs costs related to freight, repackaging, and potential markdowns on returned items," Talween Saleh, founder of Dhartii, told Fibre2Fashion.

Berrylush, a top-rated fashion brand for women, faces similar issues, with return rates posing a persistent problem. Alok Paul, co-founder and COO of Berrylush told F2F, “At Berrylush, we encounter two primary types of returns: Return to Origin (RTO) and customer-initiated returns. RTOs, currently at 14-15 per cent from our website and around 10 per cent from marketplaces, often stem from impulsive purchases or customers ordering from multiple sites and choosing not to keep all items.”

Paul added, “While we have limited control over RTOs on marketplaces, we actively work to minimise them on our website through multiple touchpoints with customers. We’ve observed a higher RTO rate with cash-on-delivery (COD) orders, so we’re focused on increasing prepaid orders by offering incentives. We’re also exploring the use of artificial intelligence to restrict COD options for customers with a history of frequent RTOs. Customer-initiated returns, which occur when customers receive their order and later return it due to dissatisfaction or sizing issues, are another challenge.”

Technology and strategy to the rescue

E-commerce platforms are now leveraging technology and strategic changes to tackle the return rates. Dhartii has enhanced its product descriptions, images, and sizing charts to help customers make more informed decisions. Additionally, it is analysing return data to identify patterns and adjust its offerings accordingly. These measures have already shown effectiveness, but Saleh acknowledges that it is an ongoing challenge.

Berrylush, on the other hand, is exploring artificial intelligence to restrict COD options for customers with a history of frequent returns. To address sizing-related returns, the company also examines data and adjusts patterns for better future fit predictions. Additionally, by incorporating lycra into fabrics for better fit, Berrylush has successfully reduced return rates by 20 per cent.

Paul pointed out, “Managing returns is integral to our process as a digital-first brand. In the women’s western wear category, the industry benchmark for return rates is 34 per cent, whereas Berrylush has managed to keep it at 31.5 per cent on marketplaces. To maintain profitability, we account for the costs associated with returns in our pricing strategy. Furthermore, as our customer base grows, we’ve seen an increase in prepaid orders, leading to a noticeable drop in return rates.”

Berrylush is also exploring technology solutions like virtual try-ons to reduce the frequency of returns, though implementing such technology at scale in India presents challenges due to the diversity of body types.

Environmental consequences: A growing concern

The environmental impact of product returns is also a major concern. Saleh highlighted the significant carbon emissions associated with the transportation of returned items. "Products often need to be shipped back to our brand partners' warehouses before being processed and potentially sent out again. This back-and-forth movement increases fuel consumption and exacerbates greenhouse gas emissions," she noted. Dhartii has also partnered with logistics services and increased the usage of biodegradable materials to reduce its carbon emissions from returns.

Paul echoed similar concerns, adding that Berrylush consolidates returned products before shipping them back to minimise the number of shipments and reduce carbon emissions. "While returns do have an environmental impact, we strive to keep it as low as possible," he said.

Waste management is another critical issue. Returned items that cannot be resold often end up in landfills, contributing to environmental degradation. Even when products are restocked, the repackaging process generates additional waste in the form of plastic, cardboard, and other materials. To combat this, Dhartii has introduced a refurbishment programme where slightly damaged items are repaired and resold at a discount. The company also uses recyclable and biodegradable materials to minimise waste and encourages customers to consider exchanges instead of returns to reduce transportation needs.

“While we recognise that there's still a long way to go, we are committed to pursuing sustainable practices that align with our environmental values,” Saleh stated.

Industry perspective on future returns management

Looking ahead, Paul suggests that while countries like the US and Europe have introduced restocking fees for returns, this practice is not yet common in India. Berrylush has dedicated a 3,000 sq ft space for thorough quality checks of returned products, ensuring minimal impact on inventory and profitability. He also emphasised the importance of customers being mindful of their return habits, urging shoppers to be more selective with their purchases to reduce both the environmental impact and the associated costs for the brand.

 

LAHORE: Meta, formerly the Facebook Company, has partnered with the Pakistan Telecommunication Authority (PTA) and the Trade Development Authority of Pakistan (TDAP) to raise awareness about e-commerce scams and share tips on how to stay safe online.

Pakistani content creators like Romaisa Khan and Bilal Munir were also collaborating with Meta to alert their followers on Facebook and Instagram, dsiclosed a Meta spokesperson here on Thursday.

Starting from February 7, Safer Internet Day, and continuing in the month of March, the creators would share tips in Urdu on their social channels reminding both buyers and sellers to watch out for online scams.

Commenting on the partnership, Beth Ann Lim, Meta’s Policy Programmes’ Director for the Asia Pacific region, said that at Meta, they were committed to connecting people, including making it easier for sellers and buyers to find each other online, but some people take advantage of others by running scams online.

“We were pleased to partner with PTA and TDAP, as well as local content creators, to promote responsible use of the internet and support all users in Pakistan to connect with their favorite businesses safely.”

Kamran Gandapur, Director General Web Analysis Cell of PTA, said that e-commerce scams continue to be an obstacle for businesses and consumers alike.

“We were pleased to partner with Meta to raise awareness among people in Pakistan so they can be better equipped to protect themselves from scams, as they navigate the digital space for buying and selling and building their online communities,” he added.

In the month of March, PTA and TDAP will share messages on account security and identifying scams, reaching a wider audience and helping to create more aware digital citizens.

 

Despair in digital age: online scams shake Pakistan's financial scene

 

n recent years, Pakistan has witnessed a surge in online investment applications and loan apps that promise financial prosperity and easy access to funds. These platforms, initially appearing as beacons of hope, ensnared both the poor and the wealthy, ultimately leaving thousands of victims devastated and billions of rupees lost.

Operating under the guise of legitimate investment opportunities, these fraudulent applications attracted individuals by offering quick and substantial returns for investing small amounts. Bolstered by an initial taste of easy money, unsuspecting victims were enticed to invest more, lured by the promise of even greater rewards. To establish an illusion of credibility, the scammers implemented two-way verification systems and flaunted international phone numbers from the UK and US, exploiting people's trust and confidence in their operations.

As the scam unfolded, victims found themselves trapped in a web of deceit. Once the fraudsters reached their predetermined targets, these nefarious applications abruptly shut down, leaving investors shocked and betrayed. The aftermath revealed a heartbreaking reality: countless individuals from all walks of life had fallen prey to the manipulative tactics of these online scams.

Adding to the complexity of the situation, a disturbing pattern emerged - despite the devastating losses suffered, some victims were enticed by the same scammers to reinvest in a desperate attempt to recoup their previous losses. In a cruel twist of fate, these individuals, driven by the hope of reclaiming what was taken from them, fell into the scammers' trap once again, only to end up losing even more.

Compounding the issue, the online loan app sector in Pakistan experienced a similar pattern of exploitation. Numerous loan apps emerged, initially offering loans at seemingly attractive interest rates. However, as borrowers became ensnared in the clutches of these deceptive platforms, the interest rates began to skyrocket. Multiple apps worked in tandem, exploiting borrowers and generating exorbitant profits through unconscionable interest charges.

Recognising the severity of the situation, the Securities and Exchange Commission of Pakistan (SECP) took action, banning several fake investment applications. In an effort to protect consumers, the SECP recently released a whitelist of secure loan apps, aiming to separate legitimate platforms from the sea of fake ones.

The impact of these scams and fake loan apps reverberates throughout the nation, shattering dreams and plunging families into financial ruin. The need for greater regulation, increased awareness, and stringent measures to combat such scams has become paramount, urging individuals to exercise caution and seek guidance from trusted financial experts before venturing into the online investment or loan app landscape.

It is a somber reminder that in the era of technological advancement, the vulnerabilities of human trust and the urgency to safeguard the interests of all individuals must remain at the forefront of our collective efforts.

 

akistan’s top investigation agency, the FIA, has cautioned the public against a surge in online fraud, saying scammers were posing as officers to extort money and sensitive information from social media and email users. 
The FIA is a border control, criminal investigation, counterintelligence and security agency tasked with undertaking operations against terrorism, espionage, smuggling, and infringement. Its cybercrime wing stands defunct since last month when the government established the National Cyber Crimes Investigation Agency under the Prevention of Electronic Crimes Act (PECA) 2016.
“Unauthorized individuals are impersonating FIA officers and circulating fabricated notices through various electronic communication channels i.e. email, WhatsApp and other such social media platforms,” an FIA spokesperson said in a press release on Tuesday.
“These deceptive notices falsely accuse recipients of criminal activity and often employ scare tactics by threatening legal action or demanding immediate financial compensation.”
Scammers were also trying to extract “elicit sensitive personal information” under the pretense of “verification or compliance,” th FIA said, clarifying that the agency would never request sensitive information like bank details from people via phone calls or notices. 
“All official communication is initiated only after prior investigation and with a clearly identified case number,” the FIA said, urging the public to “exercise caution” and report any such incident on the agency’s helpline 1991 or at the nearest FIA office. 
The newly-formed NCCIA that has taken over from the FIA’s cybercrime wing will be headed by a director-general, chosen by the federal government to serve a two-year term, with at least 15 years of experience in the fields of computer science, digital forensics, cyber technology, law, public administration, information technology and telecommunication.
The NCCIA chief will exercise the powers of an inspector general of police while the agency’s affairs related to the federal government’s business will be allocated to the Interior Division. The NCCIA is also the designated agency in terms of international investigations and cooperation.