Reduce product returns with augmented reality
Augmented reality helps reduce returns caused by a wrong perception of the product (size, color, bulk) by showing it at real scale in the customer's home before purchase. The published reductions, 22% to 40% depending on the company, are self-reported figures: measure your own return rate before and after.
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How much do returns cost in e-commerce?
Returns are one of the heaviest cost items in online retail. In the United States, they reached $685 billion in 2024, or 13.21% of retail sales, according to Appriss Retail's annual study conducted with Deloitte. The rate varies widely by product category and sales channel.
Each return generates direct and indirect costs that are often underestimated: return shipping, quality control, repackaging, restocking, and sometimes destruction when the product cannot be resold. The total cost of a return therefore goes well beyond postage.
Hypothetical example: an online retailer handling 10,000 orders a month with a 15% return rate deals with 1,500 returns a month. If each return costs €20, the bill reaches €30,000 a month. Replace these assumptions with your own figures.
The impact is not limited to financial. Returns mobilize teams, overload warehouses, slow operations and degrade the customer experience. A customer who returns a product is a disappointed customer who won't necessarily come back.
Why do customers return their purchases?
Understanding why products are returned is the first step to reducing returns. Some of the causes share the same problem: the gap between what the customer imagined and what they receive.
- The product doesn't match the picture: however carefully taken, photos don't capture every nuance of a product. The real color differs from the one on screen, proportions are misjudged, the look of materials is misleading.
- The dimensions don't fit: Particularly common for furniture, appliances and home decor. The customer thought the product would be smaller or larger.
- The appearance in the environment disappoints: A product can look beautiful in photos and not suit the customer's interior. The style, colors or proportions don't harmonize with the existing decor.
- Lack of confidence in the purchase: Some customers deliberately order multiple sizes or variants with the intention of keeping only one item. This is particularly common in fashion.
The common thread of all these causes is the customer's inability to concretely envision themselves with the product before purchase. This is precisely what 3D and augmented reality solve.
How do 3D and augmented reality reduce returns?
3D visualization and augmented reality provide a direct answer to each identified cause of returns. By allowing the customer to interact with the product before purchase, they eliminate the uncertainty that generates returns.
- See the real dimensions: Thanks to augmented reality, the customer projects the product at 1:1 scale in their space. They immediately see if the furniture fits through the entrance, if the table suits the room, if the light fixture is proportionate.
- Perceive materials and colors: The interactive 3D viewer uses physically based rendering (PBR) that faithfully reproduces wood, fabric, leather and metal textures. The customer perceives the quality of materials before buying.
- Test harmony with their interior: Augmented reality allows virtually placing the product in the exact room where it will be installed. The customer evaluates the harmony of colors, style and proportions with their existing furniture.
- Interact with the product: 360° rotation, zoom and detail exploration offer in-depth product knowledge. The customer knows exactly what they are buying.
What results can you expect from augmented reality on returns?
The published figures mostly come from the companies themselves. AR Insider (2022) reports a 40% drop in returns with 3D visualization at Shopify, 25% for AR-guided purchases at SeekXR, and a 22% lower return rate among Build.com's AR users. No published independent study allows a reliable average to be drawn.
The categories where size or appearance mismatches are most common are the most affected:
- Furniture and home decor: bulk, proportions and how the item fits the interior can be checked directly in the room.
- Home appliances: projecting the product at scale lets customers check how it fits in the kitchen or bathroom.
- Jewelry and accessories: 3D helps customers perceive real proportions and the look of materials.
- Professional equipment: projecting it into the workplace lets buyers confirm its footprint and compatibility with existing installations.
Hypothetical example: with 5,000 orders a month, a return rate dropping from 15% to 13% means 100 avoided returns a month, or €2,000 in monthly savings if each return costs €20. Measure your own return rate, product by product, before and after adding 3D.
How do you set up augmented reality with Visuality?
Integrating 3D visualization and augmented reality on your e-commerce site with Visuality is a simple and quick process that requires no advanced technical skills:
- 1. Upload your 3D model: from your Visuality dashboard, upload a GLB or USD/USDZ file. If you don't have a model, generate one with AI from a photo of your product.
- 2. Customize the rendering: Adjust scale, materials and lighting from the built-in editor to ensure a rendering faithful to the real product.
- Share with your customers: Integrate the 3D viewer on your product pages via an iframe code, distribute QR codes on your marketing materials, or share a direct link.
- 4. Your customers preview at home: On smartphone, your customers activate augmented reality with a single click. The product appears in their room, at real scale.
Uploading and publishing take a few minutes per product. Visuality hosts the models and automatically generates the USDZ file for iPhone and iPad; on a computer, visitors see the product in 3D and scan a QR code to switch to augmented reality on their phone.
Depending on your website: Shopify app, PrestaShop module, 3D viewer for any website.
What is the environmental impact of avoided returns?
A return that does not happen also avoids the logistics it would have required. In practice, an avoided return can mean:
- Less transport: a return involves at least one extra trip, sometimes two if the product is shipped again; an avoided return saves these trips.
- Less packaging: sending a product back often requires new packaging (box, padding, tape).
- Fewer downgraded products: a returned product cannot always be resold in its original condition.
The extent of these effects depends on your logistics and has not been measured by Visuality. If you want to communicate about them, rely on your own returns and transport data.
To measure the effect on your business, start with your most-returned products, track their return rate for a few weeks, then extend to the rest of your catalog.
Frequently asked questions
Sources
- Annual returns study: $685 billion in returns in the United States in 2024 — Appriss Retail, 2024-12-30
- Can AR really reduce e-commerce returns? — AR Insider, 2022-11-29