August 2022 - Expivi

Better online selling – 6 key product customization benefits

Online selling is both easier and more difficult than ever. Although people feel more comfortable buying online, there are also many more players in the game.

Product customization is a good way for eBusinesses to stay ahead of the curve. Most companies don’t provide that customizable purchasing experience, so there’s room to be a pioneer.

81% of customers are willing to pay more for customized clothing and 76% are willing to pay more for customized furniture. Shoppers want customization and they will pay more for it, no matter the industry.

We bring you 6 key product customization benefits for a more competitive online selling business.

1- Higher product page engagement

Purchase probability reaches the highest when a person spends around 50 seconds on a product page. In order to increase the average time per session on your product pages, you need to have an engaging journey.

Product customization powered by a 3D configurator adds gamification to the buying journey, therefore increasing the time spent on product pages. Increased engagement is often associated with higher conversion rates, which is what companies ultimately want.

2- Better customer experience

A good CX (customer experience) is on every company’s priority list. Product customization in online selling can offer just that.

As we mentioned before, customers are willing to pay more for customization. Why? Because it means that a product is specifically produced for them, it targets their specific needs. This enhances CX and brand loyalty.

If you add 3D configuration to the mix, you enable shoppers to get the best online visualization at the same time you’ll engage them in the creative process. They’ll be able to change things like color, material, size, and even engrave or accessorize products. Augmented reality levels up the experience by empowering potential clients to place their configured item in the environment they chose, for example, a couch in a living room.

3- Fewer product returns

Here’s what is known: 30% of all online products are returned compared to 8.89% in physical stores.

Return rates mean that you’re not providing the product your clients expect. Besides being an important indicator of customer dissatisfaction, product returns mean more shipping costs for companies and less revenue.

Product customization empowers customers to create something that resonates with them. They create their own version of your solution. At the end of the day, people are less likely to return something they created themselves. Companies offering customized products report a 40% decrease in their returns.

You must provide a good online experience though. Product customization is amazing as long as the user can visualize what they are actually creating. Poor visualization and lack of information will increase return rates even though you offer product customization.

3D configurators are the best visualization tool companies can have. It allows customers to configure products in real-time. Using 3D interactive software to create realistic 3D visuals, shoppers can create their ideal product while visualizing it as they would in a store, inspecting every detail.

4- Less waste and smaller inventory

Product customization leads businesses to shift from a made-to-stock way of producing to an on-demand way of manufacturing.

With this new model, companies only manufacture what is ordered.

Mass manufacturing often leads to waste because there’s no attention to the product’s specificities, and the quality of the product is overlooked. Once something is highly customizable, the materials used and the processes are much more efficient and well-controlled, which ultimately leads to less manufacturing waste.

Having custom products tailored to clients’ needs means nothing is wasted. There are no unsold items, nothing to be dumped in a landfill. Less waste and a smaller inventory are great product customization benefits for online selling.

5- No need for large storage spaces

Product customization on demand means less that there’s no longer the need to stock on unnecessary materials and have thousands of unsold items in some dusty storage units.

Everything that is produced is sold. No waste, no storage. Leveraging 3D configuration, companies can create their own digital showroom, providing visualization that is as realistic as in a physical store.

6- An eco-friendly brand and a sustainable business

Product customization can potentially be a greener way of manufacturing. As mentioned before, by including custom-made products in your business you’ll be tackling issues like waste and return rates, two non-sustainable consequences of online selling.

Companies produce much more than they sell. On-demand customization means that businesses only need to create what is ordered which is why is a no-waste solution. 81% of consumers indicate that sustainability is a priority for them, is it a priority to you?

Did you like this article about product customization’s benefits in online selling? Then check out our article on how companies are using Augmented Reality.

How to easily reduce product returns in eCommerce?

Problem alert!

Product returns are a major bother for online businesses, and they can mean many things, for example:

Product photography is not a faithful representation of the real thing;
Not enough information about the products;
The product was damaged or defective;
The customer experienced buyer’s remorse.

Companies do their best to reduce product returns but still, at least 30% of all products ordered online are returned as compared to 8.89% in physical stores. How can online businesses tackle this issue and optimize their revenue?

Why reducing product returns should be a priority

Returns are one of the biggest challenges when running an eCommerce business. As previously said, an average of 30% of online bought products are returned. In 2021 the National Retail Federation reported that US customers are expected to return more than US$760 billion worth of goods purchased that year. This comes with severe consequences for companies.

Return rates are also an important indicator of customer dissatisfaction. If your return rates are high, it means you are not providing the service your clients expect.

These are two main reasons why online businesses should focus on reducing their return rates. It really comes down to reducing costs, complaints, and unsatisfied customers.

However, there’s also an important player in the eCommerce industry that would benefit from reduced product returns. The environment!

When someone returns a product, it means they will send it back to its origin and eventually buy a new one. This triples the amount of transportation involved in the buying journey, which is highly associated with pollutant gas emissions.

Reducing product returns has to be part of every online business “to-do list”.

Make-to-stock needs to change…

How to reduce product returns then?

It really comes down to the way one produces and manufactures. Right now, most businesses have a make-to-stock model.

Make-to-stock relies on the predictability of customers’ needs, where companies have to anticipate what they will buy and when they will it. Which often leads to overproduction. eCommerce businesses end up with lots of components and products they don’t need and probably won’t sell. This is hugely wasteful and has a negative impact on the environment.

It’s about mass production, and mass production has severe consequences for businesses too. Having to make things in bulk before they’re sold can also have a big toll on budgets as we know. Many companies have to spend a lot of money upfront in order to buy up components or materials to create products, and they only get that money back when – and if – that product is sold.

Also, the company needs to maintain a large storage space to keep its inventory. This storage space itself can cost money to rent or buy or may simply mean the firm has to occupy bigger premises than it really needs.

Finally, mass production and make-to-stock lead to a higher product defect probability and therefore, more returns.

Make-to-stock has to be replaced by a different way of manufacturing to reduce product returns and improve overall quality. Make-to-order has to be part of the future of eCommerce.

The benefits of make-to-order

There is a wealth of potential benefits to this model, not only to businesses and consumers but to the environment too.

It reduces storage needs and logistics pressures on companies and manufacturers, while also allowing for greater personalization of products. This helps control costs while also boosting brand appeal.

Companies will only produce what is ordered and that also saves on manufacturing costs besides boosting product quality.

Another big profiter of make-to-order is the environment. Making custom products tailored to clients’ needs means nothing is wasted.

There are no unsold products, nothing to be dumped in landfill. This helps reduce the waste of both money and materials.

On-demand and make-to-order can also reduce product returns. Why? Well, if you order something that is not yet produced, it means you really want it. It’s not just some spur-of-the-moment purchase. Also, unlike mass production, make-to-order boost product quality, since the manufacturing process will be much more controlled.

Configure-to-order makes things even more interesting

Configure-to-order (CTO) is the process of configuring and making products exactly the way the customer wants them before they’re actually produced, using a 3D configurator. This means personalization and customization of items by the customer, using a simple interface like a computer or a mobile phone.

Expivi’s tech falls under the CTO’s way of producing.

It allows customers to configure products in real-time. It uses 3D interactive software to create realistic 3D visuals of the products which shoppers can then change and customize the way they want them, within the boundaries that you lay down.

This offers both hyper-personalization and gamification. Shoppers can view products in 360°, rotate, zoom, size, and change colors. Clients are also able to add as many features as you allow, from special accessories to lettering.

This brings the make-to-order experience one level higher. Great visualization, customization, and personalization are the ultimate return rate smashers. Customers are empowered from the very beginning to create something which resonates with them at the same time they have the best possible visualization of the finished product.

If what you see is what you get, why would you return it?

3D configuration and Augmented Reality to reduce product returns

So we’ve established how 3D configuration can help companies reduce product returns through great visualization and personalization.

But the online shopping experience can be even richer. How?

With augmented reality (AR), shoppers can take the creations made by them in a 3D configurator and place them in the environment they choose, using a smartphone or a tablet. There’s no need to imagine products anymore, clients can see them in the context they choose. “Does that sofa I configured goes well with my carpet?”, “Does this green shirt I personalized fit with my hair color?”. With AR, customers can answer these questions by trying out the products they specifically created using 3D configuration.

Shopify has actually reported a 40% decrease in returns thanks to 3D visualization and AR. Impressive, right?

Expivi’s tech provides 3D configuration with AR capabilities to make sure that shoppers can have the best online experience and companies can change their manufacturing to a make-to-order model. It’s important to contribute to a no-waste future, and reducing return rates plays an important role in that.

Did you like this article on how to reduce product returns? Then read about how you can implement 5 easy sustainable tecnhologies to green up your business.

5 easy sustainable technologies to elevate your online business

eCommerce needs to go greener. For a long time, online shopping was a great and more environmentally friendly alternative to standard shopping. Why? Fewer transportation costs and less overall paper waste. However, in the last few years, we have experienced an overwhelming boom in the sector. In the US alone, eCommerce sales were $870 billion in 2021, representing a 14.2% increase over 2020 and a 50.5% increase over 201.

eCommerce is no longer the greener alternative to normal retail and there are three main problems to address: transportation emissions, return rates, and packaging. But it can be.

We bring you 5 sustainable technologies that can elevate your online business at the same time you help the planet.

#1 – 3D configuration

Companies have invested heavily in product imagery but cannot take their customer experience to the next level in an eco-friendly way.

Incorporating 3D configuration into eCommerce is a cost-effective way to add capacity and sustainability for competitive advantage. What is 3D configuration?

Using 3D models of products, a configurator is created and integrated into a company’s website. The 3D configurator enables 360-degree visualization of products, zoom in and out functionalities as well as personalization and/or customization, such as color and material changing, accessorizing, and engraving.

3D product configurators give customers the power to configure items, creating the perfect product that’s as unique as they are. The product isn’t a static image but a detailed render that the customer can inspect from every angle. As a result, customers are more engaged in the buying journey and more attached to their purchases.

Why is 3D configuration part of our sustainable technologies selection?

Well, from the customer’s side, it means that the product is personal. Shoppers are less likely to return something they built themselves and to which they have an attachment. This means less transportation-related pollution, which is one of the great contributors to greenhouse gas effects. There’s no greater eco-friendly product than the one we know we are going to cherish.

From the company’s side, 3D configuration enables a make-to-order way of producing which advantages are overwhelming. From shifting to the on-demand way of producing where nothing is wasted to the unnecessity of having a large storage facility, the benefits are countless. No more thousands of unsold products, no more product incineration in landfills, and no more energy waste in maintaining large storage houses.

Brands will have the power and the resources to create their own digital showroom at the same time they cut on waste coming from the manufacturing process.

#2 – Augmented reality

Augmented reality or AR is where the real and virtual worlds meet. It helps shoppers to experience online content in the same way they do it in the real world.

The ability to place virtual objects in the physical world can help people understand the product better and improve the shopping experience.

What positive consequences does this have for the environment?

Item returns are a big contributor to the negative impact of online shopping on the environment. “Not every customer is satisfied with an item that is shipped to them. If the item is exchanged for another item, you are tripling the amount of travel required for one item — essentially tripling the number of transportation emissions.” – according to Sana.

By being able to place a product in their desired context, shoppers know if for example, a couch fits their living room or if a certain eyeshadow goes well with their eye color. The result is fewer unnecessary purchases and a decrease in return rates.

The customer no longer needs to go over and over again to stores/warehouses and pick up samples or take measurements. Everything can be done from home, and the environment benefits from that.

#3 – Internet of Things (IoT)

The Internet of Things or IoT describes physical objects with sensors, processing ability, software, and other technologies that connect and exchange data with other devices and systems over the Internet.

It’s a giant network of connected things and people – all of which collect and share data about the way they are used.

You can use these technologies and devices in your business to optimize energy efficiency.

IoT devices can pass information about their lifecycles, enabling energy saving and the exact understanding of when components or hardware might need to be replaced, rather than doing so prematurely and increasing waste.

This tech can be used in your own office or in your manufacturing sites.

#4 – Eco-packing technology

Biodegradable plastic is used by many companies as a way of having a “greener” footprint. The fact is that the biodegradable plastic used in eCommerce packaging is almost always non-recyclable.

Businesses should focus on other environmentally friendly packing solutions such as polylactic acid, bubble wrap, and cardboard, all more biodegradable and with a more sustainable manufacturing process.

A 100% eco-friendly packaging is still far from sight, but by exploring sustainable technologies like the ones mentioned above, companies will be able to evolve to a “greener” level.

#5 – Expivi’s CPQ software for supply chain integration

CPQ means configure, price, and quote. Practically speaking, customers configure their desired item using a configurator like the one mentioned above, the value of the product is shown in real-time and a Bill of Materials (BOM) is generated and sent to production. That’s what Expivi’s 3D configuration platform is all about.

This tech improves the overall customer experience since shoppers are able to have access to the price in real-time but it also helps businesses to use a digital supply chain integration through a unified ERP system. Customers, brands, and manufacturers are all connected by one platform, minimizing errors, miscommunication, and waste.

The ideal addition to our sustainable technologies list.

Sustainable technologies have to be part of the future of eCommerce

Although online shopping has 1.5-2.9 times fewer greenhouse gas emissions compared to in-person shopping, in 2020 alone, the shipping and return of products accounted for 37% of the total GHG emissions.

Customers want to follow a “greener” future. In fact, 73% of consumers are willing to change their ways to reduce the impact on the environment.

eCommerce can be part of the solution, instead of being part of the problem. Companies are doing that effort, but are they doing it in an efficient way?

Reach out if you want to discuss some of the sustainable technologies mentioned above and see how Expivi can work for your business.

How to create a sustainable business with 3D configuration and augmented reality?

As of 2022, 81% of consumers indicate that sustainability is a priority for them and almost 80% of retailers believe that their sustainability work increases customer loyalty. They are not wrong.

eCommerce is committed to stepping up its game and having a sustainable business is on almost every company’s main strategy plan.

Going greener is on their books, but the problem is: how to do it. How to embrace sustainability in an efficient way?

3D configuration and Augmented Reality might be the solutions companies are looking for in order to have a more sustainable business.

What is 3D configuration?

3D configuration elevates product experience as it allows customers to perceive what is online as if they were in a store. How?

Well for starters, a 3D configurator that uses 3D models of products has to be integrated into a website, and that´s it.

After that, shoppers can view and change product attributes. For example, when buying a car, it could include modifying its color, upgrading the wheels, or adding internal features such as an upgraded stereo or touchscreen.

The product isn’t a static image but a detailed render that the customer can inspect from every angle. Using a phone, tablet, or computer, they can zoom in or out, examining a 360° image of a product before it’s ever produced.

The ability to rotate the product and zoom in on it enables customers to „feel“ for the textures, details, and quality. As a result, customers are more engaged and inspired in their shopping journey. The sensorial journey is upgraded when 3D configuration is combined with Augmented Reality.

What is Augmented Reality?

Augmented Reality aka AR, is a feature where the real and virtual worlds meet. It can be helpful throughout the day to experience online content experience the in same way one experiences the real world. The ability to place virtual objects in the physical world can help people understand the product better and improve the shopping experience.

Augmented reality is essentially a way of presenting a 3D effect on a 2D screen which is why, in association with a 3D configurator, it provides the ultimate customer experience. Shoppers can feel the product and place it in their desired context, see if it fits the room or if the color is the right one for them.

Leading the way to a sustainable business

3D configuration in association with AR can help companies have a more sustainable business. With the current technology, it’s a misconception to consider that sustainability is expensive or unreachable. A 3D configurator can be the perfect solution for those online businesses that want to implement more environmentally friendly policies while reducing costs. This is why 3D configuration can help eCommerce businesses get there.

Fewer returns

A 3D configurator integrated onto a website decreases returns by empowering the customer in the buying journey.

Online shopping is fraught with danger for customers, who face a significant dilemma when clicking the button to buy.

Even when buying online from brands they know and love, they can’t be sure:

What they’re buying
If the product fits their style
The product material meets their specifications and quality
Which accessories match the product

As an outcome, a massive 25% of items bought online are returned after purchase.

This costs online retailers billions every year. What’s more, the higher the sales, the bigger the cost implications.

Allowing personalization means that the product resonates with the buyer on a deeper level. This means fewer returns (up to 40% less). Fewer returns also mean less shipment. Cutting on shipment of returned items results in less transportation, which leads to less gas emissions, one of the major problems in the retail sector.

Less storage maintenance

Implementing a 3D configurator means businesses will transform their production method from make-to-stock to make-to-order. This means companies will work on-demand and only produce what is ordered.

This way of manufacturing leads to fewer storage needs and logistics pressures on companies. Less storage means smaller electric bills, and saving on energy, another problem companies face when trying to have a more sustainable business.

Less manufacturing waste

Going from make-to-stock to make-to-order is associated with less manufacturing waste. Why?

Quite simply because companies only manufacture what is ordered, which is a bespoke way of producing. Mass manufacturing often leads to more waste because there’s no attention to the product’s specificities. Once something is highly customizable, the materials used and the processes are much more efficient and well-controlled, which ultimately leads to less manufacturing waste.

A great way to move towards a sustainable business.

Less inventory waste

Very much like in the manufacturing process, having custom products tailored to clients’ needs means nothing is wasted. There are no unsold products, nothing to be dumped in landfill.

This helps reduce the waste of both money and materials. It’s a great way to build an environmentally-friendly brand, which is actually something that many clients search for these days.

Fewer products also mean that there’s no longer the need to stock on unnecessary materials and have thousands upon thousands of unsold items in some dusty storage.

With 3D configuration, companies will be creating their own digital showroom at the same time they cut on waste coming from the inventory.

Did you like this article on how to create a more sustainable business? Then read our article on eCommerce scalability

3D Advertising in Augmented Reality

What exactly are 3D and Augmented Reality advertising? This form of advertising has been gaining popularity in recent years because of its stunning product visualization. It allows potential customers to experience products in 360 degrees and AR. This incredibly immersive advertising and shopping experience are officially here to stay. In addition to its potential for increased sales, 3D and AR advertising can be used to increase trust and brand awareness within your customer base.

What is 3D advertising?

When a brand uses 3D advertising, they’re allowing customers to experience the product in their hands. They can rotate, zoom, and explore the features and functionalities. This heightened sense of engagement will likely translate into higher sales and increased ad interactions.

Various industries have adopted the use of 3D advertisements. For example, high-definition imagery can be seen while users walk around a museum in AR. 3D advertising gives the user a sneak peek of what the museum looks like, allowing the user to explore the space without having to leave home. The technology has also opened the door for innovative ways to showcase products and services.

A 3D ad will allow viewers to interact with the product from any angle, increasing their chances of purchasing. In addition, a 3D ad will help increase brand awareness, boost conversion rates, and increase time on site. In a saturated market, people are more likely to work with brands that stand out and make them memorable.

Benefits of using 3D & AR advertising

While 3D & AR technology is still new, it is already having a profound impact on consumer behavior. AR technology makes flat icons look like 3D models. Companies that develop augmented reality marketing software use AR to turn the scanned image into a video or 3D model. AR helps consumers to visualize products before they launch, allowing customers and business owners to preview products and services before the launch.

The use of AR technology in marketing has many benefits. AR allows advertisers to be more creative, attracting a broader consumer base. This technology has already caught the attention of numerous companies. AR is an engaging format that makes consumers interact with the advertisement. It can also help marketers increase conversion rates by providing a realistic preview of products. AR ads can be used in many industries, from e-commerce products to theme park advertisements.

3D & AR advertising can be used to show products from different angles. For example, using AR filters on social media sites such as Snapchat and SparkAR creates an immersive experience for customers. This technology also can increase profits, enabling companies to see an increase in their bottom line.

3D advertising to boost sales

With the popularity of augmented reality and 3D content on social media, advertisers can now create ads in both formats. 3D ads are similar to those you’d see on Facebook and Instagram, but they let users see a product from all angles. These ads can be clicked on to shop the product online. By making the experience interactive, 3D ads can help brands gain a higher click-through rate.

The effectiveness of AR advertising has been proven to boost sales. Immersive ads can be delivered through mobile apps and 3D product stores. One study found that nearly four percent of consumers would consider purchasing a product if it had an AR feature. Another study found that almost three-four percent of consumers would pay more for a product with AR capability than a similar product without it. The results speak for themselves.

3d advertising allows advertisers and advertising agencies to get creative. This increases engagement and website traffic. Also, 3D ads can attract an even larger audience, effectively building brand loyalty. People are exposed to anywhere from 4000 to ten thousand advertisements daily. This makes standing out from the crowd even more difficult as a business owner; 3d and AR will certainly help catch the eyes of consumers.

Augmented reality advertising

A recent study surveyed users‘ responses to pre-roll ads and Snapchat AR lenses. These lenses included gamified entertainment content, world-facing experiences, and shoppable AR buttons. The results revealed a clear correlation between the number of ad clicks and the likelihood of purchasing the advertised products or services. This research also shows the potential for augmented reality advertising to generate revenue. It is not yet clear what the potential ROI will be, but there are a few ways to measure ROI and understand the effectiveness of AR ads for digital marketing.

The study examined whether AR and 3D advertising influence consumers‘ emotional responses. First, the participants were shown a series of AR-enabled product images. Then, the researchers provided instructions and assessed the intensity of their effect after the task. They used a five-item questionnaire, a seven-point Likert scale, and a „strong/weak“ endpoint.

Configurable 3D Ads

With the advent of Augmented Reality and 3D visualization, marketers are taking advantage of configurations in their advertisements. With 3D visualizations, customers can interact with products in real-time, enhancing the customer experience. Furthermore, with configurable 3D ads, advertisers can change the appearance of their products to suit different settings. Such options are compatible with both Android and iOS. In addition to promoting their brands more effectively, configurations in 3D ads can help consumers make better purchasing decisions.

The benefits of using configurations in 3D ads are numerous. Advertisers can showcase their products in an immersive environment. The full-screen option also helps users interact with the ad naturally. Moreover, a user can zoom in and out of the 3D model, which enables them to have a close-up look at it.

Customers will feel more satisfied after interacting with these virtual products. These satisfied customers will more likely revisit the website, increasing sales and click-through rates. Additionally, consumers will better understand your products and designs, resulting in higher profits and customer loyalty. With these benefits, you should not hesitate to incorporate configurable 3D ads into your advertising campaigns.

Increase User Engagement with 3D ads

The effectiveness of interactive 3D advertising cannot be underestimated. The interactive format piques consumers‘ curiosity and keeps their attention longer than traditional online ads. In addition, a recent study by Salesforce revealed that 84% of consumers consider the customer experience an important factor when purchasing. As a result, consumers are increasingly turning to 3D advertisements to make purchases.

In addition to increasing brand engagement and awareness, interactive 3D adverts are highly effective at boosting conversion rates. By presenting brand products in greater detail, 3D advertisements encourage customers to make smarter purchasing decisions and advertisers the ability to pivot strategies.

Traditional digital ad campaigns rely on 2D images, videos, and copy. 3D ads will still need quality sales copywriting, but the visual aspect will capture attention quickly. Keeping your product and brand up to date is vital. Adding 3D advertisements to your marketing strategy can help you stand out from the competition.