3 Shipping Scams That Are Killing Your eCommerce Profits

3 Shipping Scams That Are Killing Your eCommerce Profits

by | Nov 23, 2022 | System Integrations

Many merchants have been gearing up for the holidays for months, and the time for Black Friday and Cyber Monday rushes is upon us. These merchants have to deal with many roadblocks and headaches along the way, like return scams and the like. Unfortunately, the abuse doesn’t stop at your return policy… With the holiday season in full effect, killer customers are on high alert and merchants should be too, considering record numbers for online shopping are expected this year, 166.3 million shoppers are expected to buy online just this Black Friday and Cyber Monday weekend. We teamed up with our fraud prevention partner Signifyd and the team at ShipStation to help online merchants stand clear of the 3 most common shipping scams killing eCommerce business profits this year.

 

1. Package Rerouting

 

Fedex truck on street with smoke on the side

 

Package rerouting commonly occurs when a customer commits payment fraud and uses a stolen credit card to make an online purchase. In most cases, the transaction is cleared because the legitimate cardholder’s address is used without being flagged. However, once the customer receives shipping confirmation and the package is en route, the original address is changed.

In another case, the customer purposely provides a false shipping address and monitors the package through the online tracking information given upon confirmation. Once they’re notified that the package is undeliverable, the customer contacts the shipping company to provide a new delivery address. Unfortunately for merchants, additional fees may occur when the package is successfully rerouted.

Lastly, a customer can make an online order and after confirmation, call the merchant to ask if their preferred shipping service can be used. Most likely, these customers have an established relationship with outside shipping services and are confident about receiving shipped items unflagged, making it harder to track and prove the package was ever delivered.

In all three cases, by the time the legitimate cardholder notices the unauthorized purchase, the scammer’s already enjoying their products free of charge. These types of fraud leave the online business with losses up to $10,000 in shipping fees, lost product, and lost profit… so now what?

 

Preventing Package Rerouting

Solving this issue requires a multi-step approach. First, it’s important to note not all customers have malicious agendas. In fact, many may have good reason to reroute a package. To avoid upsetting or offending legitimate customers, merchants should start with a clear shipping policy stating there’s a zero-tolerance for package rerouting on their website, social media profiles, and email confirmation.

Creating detailed shipping terms and conditions that address various errors that arise during shipping is important when dealing with customer claims. One major way to gain clarity into issues is to offer tracking. Tracking lets you know that an item has been delivered.

                                                            -Jennifer Ruben, Partner Marketing Manager, ShipSation.

 

In addition to providing these details, make sure a customer’s zip code and address are validated before shipping. Lastly, be sure to ship only to the original address provided in the confirmation details, especially for a large order.

 

2. Item Not Received 

by Mike Cassidy at Signifyd

 

4 Wrapped gifts on doorstep

 

One of the most insidious shipping scams occurs when the item marked ‘not received’ actually was received. False INR claims cost retailers millions every year, but they also cost merchants their reputation. Once word’s out that a retailer tends to give in to INR claims, be it via social media, dark web forums, or even a legitimate publisher, similar claims will flood in.

The scam is popular because it’s easy. No need to commit online identity theft by stealing someone’s personal information, or hack into a customer’s retail account. All abusive customers need is the will to cheat the system without care.

To put it simply, scammers accomplish this by ordering a product, bringing the product into their homes, and then telling their credit card companies their orders never arrived. Such claims create one of the thorniest situations in the retailer/customer relationship.

If the retailer challenges an item-not-received claim and it’s legitimate, chances are the retailer just lost a customer for good. Signifyd’s consumer survey, conducted by market research firm Survata, found that nearly half of consumers will endure no more than one bad experience before abandoning a retailer for good. Let’s agree that being called a thief by a retailer counts as a bad experience.

On the other hand, if a retailer accepts the INR claim and it’s not true, the merchant is out of the goods and the revenue it would have received. You can up your fraud protection game, by adding a few things to your to-do list.

 

Preventing INR Claims

The first step is to make sure your return policy is clear, and that your return process is easy. You also want to be clear in your descriptions and presentations of the products you’re selling. Not only does this provide your customers with a better shopping experience, but it also reduces the possibility they’ll be unpleasantly surprised when their order arrives.

Some consumers become frustrated with the work required to return a product and decide to get a refund by claiming the product never came. Being clear about returns and the products you’re selling helps reduce the incidence of unhappy customers who suddenly feel entitled to game the system.

There are also ways to challenge an INR claim, of course. Finding photos on social media of a customer with a product they claimed they never received, for instance, is fairly strong evidence that the item was received — as is a customer’s signature accepting the order. (It happens.)

Dealing with INR claims will never be pleasant, but with some forethought, it can become much less of a chore.

 

3. Hijacked Shipping Accounts

 

Shipping railroad tracks with multiple trains during sunset to represent hijacked shipping accounts

 

Nothing’s off-limits when it comes to fraudsters, not even shipping accounts. If your company’s shipping account is online or accessible to the public, you should keep reading.

Hijacking shipping accounts is a free and undetectable way to use a stolen shipping account number to make large shipments. Once these account numbers can be accessed, they are often used in the same manner as stolen credit cards and become can punch your profits in the gut.

In less severe cases, employees use their company’s account number to ship personal packages from time to time. In the worst case, these stolen accounts are used to ship drugs, stolen goods, or fake checks long distances, sometimes across the country.

Take Montana State University for example, in 2010 the school had a $180,000 pile-up in fraudulent shipping costs after more than 9,000 consumers received fake checks. Fake checks are normally used to trick recipients into wiring money for a small fee.

Businesses of all sizes are easy targets, as their shipping bills typically aren’t monitored close enough. However, with little knowledge of who’s accessing your account, it becomes harder to track down the culprit.

 

Preventing Hijacked Shipping Accounts

In order to properly prevent hijacked shipping account numbers, there must be a central management system that includes these features:

  1. Make account numbers accessible only to specific and trustworthy employees. Remember, less is more.
  2. Implement a reporting system that allows these users to be able to regularly schedule pickups and track packages, without constant authorization needed.
  3. Monitor frequently. With a tracking system in place, data can be used to track users’ activity for cross-reference purposes.

 

Final Thoughts

Tracking down evidence of fraud (be it wire fraud or shipping) takes time and not many merchants want to get into the business of becoming Sherlock Holmes. However, without proper detective work, shipping scams can be a legitimate threat to merchants, their customers, their reputation, and their profits. Luckily, there are fraud-protecting and chargeback-management solutions that highly automate the INR dispute process and some also eliminate the merchant’s risk. Ask us more about INR Protection here. 

 

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5 Ways Augmented Reality is Changing eCommerce and Dazzling Buyers in 2023

5 Ways Augmented Reality is Changing eCommerce and Dazzling Buyers in 2023

by | Oct 10, 2022 | Commerce Strategy, UX/UI Design, Web Development

“I do think that a significant portion of the population of developed countries, and eventually all countries, will have AR experiences every day, almost like eating three meals a day. It will become that much a part of you.”<span class="su-quote-cite">Tim Cook, Apple (2016)</span>

 

In 2021, retail eCommerce sales amounted to approx. $5.2 Trillion US dollars worldwide. Over the next 4 years, this number is forecasted to increase by 56%, to almost 8.1 Trillion, by 2026.

More merchants than ever before are investing in online stores as the industry booms. To maintain dominance in the rapidly growing market, leading brands are turning to Augmented Reality.

 

What is Augmented Reality?

 

Augmented Reality is the practice of using an AR-capable device (like a smartphone or smart glasses), to superimpose computer-generated images over real life. This gives users the impression that the superimposed image is in the real world, allowing users to interact with products physically, without ever leaving their homes. Take a look at the images below to get an idea.

 

Augmented Reality Example 1

 

Today, most US consumers already have devices that support AR experiences (yes, even you). This holiday season, expect Augmented Reality’s importance in retail to truly shine, considering in-store shopping is at an all-time low. Even B2B companies are investing in the technology for a variety of applications, from eCommerce to operations. If you don’t keep up with this trend, you could be part of the growing list of organizations falling behind during the pandemic. Continue reading to see a few AR experiences companies are using already, and some you can try yourself.

 

1) A New Standard in At-Home Retail.

Companies like Amazon and Apple are already utilizing AR experiences to bring the in-store experience into consumers’ households. With AR, shoppers can view items like furniture or appliances on their mobile devices, and place 3D product models in their home virtually. Phone and tablet users can view products anywhere, giving them the freedom to see if products fit in the space they are buying it for, prior to purchase. Consumers can ensure items are what they’re looking for, from size to shape and color, all from the comfort and safety of their homes. Check out this Augmented Reality model we built for Jura Coffee machines:

 

 

Jura Coffee Machines

Using augmented reality, we created an at-home shopping experience for Jura. With our AR design, customers can see how Jura’s coffee machines appear on their kitchen counters from home. With in-store traffic at an all time low in 2020, experiences like this help customers see the product without visiting a Jura location. Scan the code with your smartphone to view the model at home!

⬅️   Tap the buttons on the right of the image to see product features and dimensions.

 

 

In this way, AR gives buyers confidence that they are buying the right item and limit returns with Augmented Reality. Shopping for a new couch or coffee machine? Make sure it fits before tapping “buy,” without ever visiting the store.

 

In Home Retail Augmented Reality

 

For Retail, AR’s Future is Clear

 

Redstage’s Global Creative Director, Christopher Yin, had this to say about AR’s role in eCommerce: “Wayfair, Target, Walmart, Ikea, and every other juggernaut of retail has and will invest large sums in Augmented Reality in the near future, as it is the clear trend. To keep up with the largest companies in the world, you must give your customers unique and memorable experiences to retain them.” The stats speak for themselves:

  • 61% of shoppers said they would prefer to shop at stores that offer AR, as opposed to ones that don’t.
  • 40% of shoppers said they’d be willing to pay more for a product if they could experience it in AR.
  • 71% of shoppers would shop at a retailer’s store more often if they offered AR.

 Source: Retail Perceptions

 

2) Unique Experiences in Consumer Goods

 

In Store Augmented Reality

 
Virtual Try-On gives the In-Store Experience At Home

 

While you don’t need a dedicated app to enable AR experiences, these are a few ways top names in CPG are taking the tech to the next level. Augmented Reality is already being used to enhance in-store experiences. Utilizing their branded AR app, shoppers at American Apparel can scan clothing and footwear right on the rack and view information typical of an eCommerce store right from their phone. They can find the right sizes, colors, styles, and even customer reviews all while shopping in the store.

With Sephora’s in-store “magic” mirror, shoppers can try on different kinds of makeup with Augmented Reality. With facial recognition technology, smart mirrors can automatically detect different facial features and apply a wide variety of cosmetic products directly to users’ reflections. Remember, 40% of shoppers said they’d be willing to pay more for a product if they could experience it in AR. This applies to in-store shoppers as well.

 

 

 

AR Try On

We designed this sample model of an AR Eyeglasses to show retailers and manufacturers how popular appliances can be viewed from anywhere.

📲 Point your smartphone camera at the QR code to try it out, wherever you are!

 

 

It’s easy to see how experiences like this increase customer satisfaction by ensuring they get the product they want. This prevents the disappointment of out-of-stock products while reducing returns and increasing sales. Bring the online shopping features your customers love to your physical stores and see in-store sales grow in tandem.

 

3) Augmenting Products and Packaging

 

 

 

 

Recently, the team at Redstage created an AR concept for Panini, one of the largest manufacturers of sports playing cards in the world. The benefits of this AR experience include:

  • Adding an interactive dimension to playing cards.
  • Encourage use of branded apps to experience AR, encouraging up-sells.
  • Provide new experiences to engage and entice customers to purchase.
  • Allow shoppers to check packaging in-store for AR experiences in the aisle.
  • The potential to revolutionize the playing card and collectibles industry.

 

 

 

 

Lidar scanned shoes

We used Lidar scanning to create this model with ultra realistic results. This technique is best suited for clothing and organic objects vs traditional 3D modeling.

📲 Point your smartphone camera at the QR code to try it out, wherever you are!

 

4) Augmented Reality Gives Confidence and Freedom in Fashion

 

Augmented Reality Try It On At Home Luxury Goods

 

There’s nothing worse than buying clothing online that ends up not looking, feeling, or fitting how you hoped. Dodge returns this holiday season by using Augmented Reality to let shoppers virtually try-on clothes. Let them see the fit and cut of clothes in real-time, on their body, or let them walk around apparel items on a virtual model.

Do the earrings match? Is the dress long enough? Most of the time, shoppers don’t know their dimensions off the top of their heads. With AR, 3D product models are based on real dimensions, increasing buyer’s confidence in their purchase. Again, this will undoubtedly lower returns and can grow repeat customers who enjoy the experience.

 

AR for Accessories & Luxury Goods

 

 

Ring

We designed this sample model of an AR Ring to show retailers and manufacturers how popular appliances can be viewed from anywhere.

📲 Point your smartphone camera at the QR code to try it out, wherever you are!

 

 

Continuing in the theme of “bringing the in-store shopping experience to your home,” it’s just as important for consumers to see how accessories look on their body without visiting the store. Imagine seeing rings on your fingers, a watch on your wrist, or a necklace on your neck, without ever stopping by the jewelry store. All this and more is being implemented by top brands today. Sephora and Covergirl are even using AR for new makeup and cosmetics experiences.

So far, we’ve seen the Try-It-On-At-Home (TIOAH) AR experience implemented for:

  • Bracelets
  • Earrings
  • Makeup
  • Nail Polish
  • Necklaces
  • Rings
  • Watches
  • And more!

 

5) Using Your eCommerce Platform for Augmented Reality

Apparel designer Rebecca Minkoff has been improving conversion rates consistently with AR and 3D models, here’s how:

 

 

Rebecca Minkoff has been using 3D models on their product pages since the fall of 2019. 3D models give customers a 360-degree view of products, increasing interactivity over stationary photos. Jon Wade, head of Augmented and Virtual Reality at a leading eCommerce platform says, “We’ve found that visitors who interacted with a 3D model were 44% more likely to add a product to their cart and 27% more likely to place an order that visitors who didn’t. Furthermore, when visitors viewed a product in AR, they became 65% more likely to make a purchase.”

 

“Visitors who interacted with a 3D model were 44% more likely to add a product to their cart and 27% more likely to place an order that visitors who didn’t. Furthermore, when visitors viewed a product in AR, they became 65% more likely to make a purchase.”

 

Knitted tie manufacturer Broni and Bo is another merchant utilizing Augmented Reality in their online showroom. Enhanced with facial recognition software, customers can try on knitted bowties and wedding ties before the big day, giving customers confidence that they chose the right look. There’s no limit to the experiences you can give customers with Augmented Reality and 3D models.

 

Bow Tie Facial Recognition

 

 

AR models can bring your product pages to life and automatically display interactive 3D models when viewed on a desktop computer. Increase buyer engagement and make consumers more confident in their purchase from the beginning with AR and 3D models.

 

Misconceptions about Augmented Reality:

 

1) It’s too expensive: FALSE!

Implementing Augmented Reality in your online store is not nearly as expensive as you may think, which is why so many companies are investing in it right now.

 

2) It’s difficult and time-consuming to build AR models: FALSE!

With the right team, who has experience and knowledge, it is both easy and fast to implement Augmented Reality and 3D models into your store.

 

3) Implementation requires additional tech and infrastructure: FALSE!

Most eCommerce platforms are already set up to allow for Augmented experiences. They take no extra implementations or infrastructure to implement!

Jon Wade, head of AR and VR at Shopify, mentioned this about AR’s ease of use, “Any mainstream browser works for AR, you don’t need any additional hardware, software, or expert knowledge to experience it. It works on all new mobile devices, desktops, and tablets.”

 

4) AR will kill the load-time of my product pages: FALSE! 

The right team can implement AR experiences without sacrificing load time or website performance.

 

Want to Learn More About AR Implementation?

To show you how easy it is to make an AR design, send a .EPS file of your company’s logo to info@redstage.com and we’ll send you an AR model of your company logo for free. Test out the technology and see how quick the turn around time can be.

To learn more about how we can bring your AR dreams to life, visit https://www.redstage.com/augmented-reality-design to schedule your free consultation.

 

The Biggest Disruptor for B2B Business in 2022

The Biggest Disruptor for B2B Business in 2022

by | Jan 8, 2021 | Commerce Strategy, Web Development

At HPE Discover in June 2020, former Cisco CEO turned Venture Capitalist John Chambers shared this warning to business leaders around the globe:

 

“40% to 50% of the Fortune 500 will not exist in a decade, it’s going to be a brutal change. These terrible events we’re now seeing will accelerate that. Probably 60% of the startups won’t exist in a decade and several won’t exist in two to three years. So, it’s a period where you either disrupt or you get disrupted.”

 

Disrupt, or Get Disrupted.

 

Buyer habits and demographics are changing rapidly, forcing B2B companies to fight tooth and nail for attention. But, how do you disrupt a trillion-dollar industry like pharma or manufacturing?

 

The key is creating a centralized, easy to use interface for buying and selling online. One that easily connects buyers and sellers while collecting valuable customer data. For these reasons, 2021 is quickly becoming the year of the B2B marketplace. So, what are B2B marketplaces and what advantages can they provide you?

 

What is a B2B Marketplace?

 

what is a b2b marketplace buyer portal online digital market

 

In the same way Amazon allows consumers to purchase items from 3rd party vendors on Amazon.com, corporate megaliths like 3M and AB InBev now have online portals that provide better buying experiences for their vendors. In other words, a B2B marketplace is an online store that uses eCommerce functionality to let buyers view different brands and product lines from hundreds of vendors all in one place. Buyers using these B2B marketplaces can easily compare prices and products to ensure they order the products they need at the best price.

 

 

2021 MARKET SURVEY

2021 State of eCommerce Report

Answer 5 quick questions for our 2021 State of eCommerce Report to receive a free usability assessment from Redstage!

Learn More

The industry shift to online marketplaces is not only a result of new software specifically designed to help B2B companies operate more efficiently… Early last year, Bank of America analyst Justin Post said the firm expected Amazon to capture 10% of the addressable B2B market by 2021. Since then, companies around the world from aerospace to construction and more have been launching online marketplaces left and right, hoping to get ahead of the curve. If the alarm bells aren’t ringing yet, they should be, as Amazon’s incredible ability to scale will soon disrupt B2B the same way it dominates retail today.

 

Competition aside, giving your vendors and buyers a “one-stop shop” experience is just good business. And make no mistake, B2B marketplaces give incredible benefits to the businesses that own them. Let’s take a look at two top companies to learn how their marketplaces strengthen their overall strategy.

 

Strategic Advantage: AB InBev’s B2B Portal

ab inbev b2b marketplace portal store digital b2b market

 

In December, global beer distributor AB InBev (owner of top brands like Budweiser, Corona, and Stella Artois) constructed a one-stop shop B2B marketplace for all the individual vendors of their products. With 98% of AB InBev’s business coming from B2B distribution, providing their sellers a much easier to use and automated way to order stock was extremely important. After generating $6 million GMV in the first month, AB InBev plans to scale this digital platform continuously in 2021 and beyond.

 

Their new B2B vendor portal also allowed them to map the customer journey for all their vendors. With this insightful data in hand, AB InBev is armed with the tools to continue to improve their buyers’ experience. The data also helps them stay ahead of buyer trends as they change with seasonality and other variables. Constantly improving and changing, the marketplace gives AB InBev added adaptability and flexibility with their commerce operations.

 

Strategic Advantage: 3M’s Marketplace

 

3M also launched a new B2B marketplace this year where their channel partners can all sell their products independently on the same platform. They took a different approach; instead of controlling the buyer process, they allow their channel partners to control all the selling and transactions, even with their own offers and pricing. 3M only facilitates the connection between their partner sellers and buyers. 3M simply provides the front end and a premium customer experience.

 

This hands-off approach allows 3M to oversee all of their online product sales without having to micromanage vendors. It also allows them to give their vendor customers a better, more efficient buying process while avoiding channel conflict.

 

Top 5 Features of B2B Marketplaces

brandless b2b marketplace online chemical healthcare portal

 

What are some of the biggest benefits of implementing a B2B marketplace?

  • Providing faster ordering and automatic reordering, custom pricing, minimum order quantities, shipping options, payment options, and other premium digital features to your customers, all without calling a sales rep.
  • Allowing your business and/or individual BUs to scale faster in a rapidly changing digital ecosystem.
  • eCommerce platforms, especially SaaS platforms, are easier to maintain and upgrade as needed, compared to manual and physical supply-chain infrastructure.
  • Digital systems provide employees with much-needed assistance with automation and analytics, enhancing the capabilities of your teams from sales and marketing to accounting, tax, compliance, and more.
  • Making things much easier on their sellers and vendors helps them thrive in this new ecosystem as well, connecting digital systems and speeding up processes for everyone.

With online orders reaching levels previously expected 10 years from now, making the buying process as easy as possible is crucial to ensuring products get to the right places at the right time.

 

For companies with multiple brand names under their umbrella, the need for an online marketplace becomes even more apparent. The more complicated the fulfillment process, with multiple warehouses, distribution centers, and massive amounts of inventory, the more necessary a comprehensive online portal becomes to automate and speed up these processes.

 

Different Types of Marketplaces

walmart b2b marketplace digital online portal marketplace

 

All kinds of companies are building B2B marketplaces to expand their digital capabilities in 2021. Walmart has launched a digital marketplace, shown above, to compete with Amazon. This allows for a much larger selection of brands and sellers to sell on Walmart’s website. Giving Walmart an even larger market share than they already had.

 

honeywell b2b marketplace buyer portal online digital

 

Outside of CPG, a household name in Aerospace manufacturing Honeywell established the Honeywell Marketplace for aerospace parts companies, and in an industry dominated by brand loyalty and trust, it’s almost impossible to get buyers to see your products if you aren’t on Honeywell’s trusted marketplace.

In Healthcare, Fulcrum Digital and Redstage collaborated to create an online buyer and seller marketplace for DMEhub, a seller of durable medical equipment. A more creative use for a B2B marketplace, DMEhub was able to greatly increase the speed and rate at which they could accept orders of important medical equipment while staying 100% HIPAA compliant.

 

The incredible number of uses and benefits of creating marketplaces for connecting buyers and sellers is well documented. To become a digital leader in 2021, innovation and creativity is sorely needed, and we’re finding new ways to use them every day!

 

Let’s Get Started!

Remember, 40% to 50% of the Fortune 500 will not exist in a decade. So, for companies on the list looking to stay there, and for rapidly growing companies looking to make their first appearance on the acclaimed list, the message stays the same:

Disrupt, or be disrupted.

The biggest disrupter for these businesses is going to be major marketplaces increasing customer’s ease of access to multiple vendors and confidence they’re making the right decisions. It’s time for you to provide the same value as Amazon, if not more.

Not sure where to start?

Redstage is offering completely free eCommerce and business analysis to the first 5 merchants who schedule one. Schedule your free website usability assessment here and find out where you stand compared to others in the same space. Check out our Top 5 B2B eCommerce Features customers are requiring from merchants here.

Want to learn more about marketplaces and other B2B trends? Check out our webinar on the biggest eCommerce trends we saw during the last year with our CEO here. 

Four Ways to Easily Upgrade Your Customer Experience

Four Ways to Easily Upgrade Your Customer Experience

by | Nov 28, 2020 | Commerce Strategy, eCommerce Platforms, UX/UI Design

Thanks to a global boom that shot eCommerce 10 years into the future, companies around the world are quickly adapting to the new normal. In an ocean of different brands from consumer goods to luxury products and more, all investing in strengthening their eCommerce operations, how does a merchant differentiate themselves from the competition?

 

“Some B2Bs are poised to adapt and take advantage of investments they have made in eCommerce and digital marketing. However, many B2Bs are going to be caught flat-footed, having delayed investments in the past or shying away from eCommerce due to internal channel conflict. The time to act is now.”<span class="su-quote-cite">Brian Walker, CSO at BloomReach</span>

 

Your online shopping experience is your business’ most valuable asset. According to PWC’s research, 73% of customers said that shopping experience is a decision-making factor for them. Another study showed that most buyers believe new technologies improve the purchasing process, on and offline.

We interviewed experts from Redstage, BigCommerce, and Threekit to discover how online merchants can upgrade their customer experience and stand out in a hyper-competitive marketplace. Watch the video interview here.

 

 

Meghan Stabler

Meghan Stabler

VP of Global Product Marketing, BigCommerce

With 20 years of experience in product marketing, Meghan leads Global Product Marketing and Communications for the multinational SaaS juggernaut, BigCommerce.

Christopher Yin

Christopher Yin

Global Creative Director, Fulcrum Digital and Redstage

Since creating award-winning online experiences for Fortune 500’s like Crayola, Pfizer, and Macy’s, Christopher helps ensure Redstage’s customers get the same treatment.

Marc Uible

Marc Uible

VP of Marketing, Threekit

Marc has spent the last decade doing marketing for PayPal and being an entrepreneur, helping companies customize products in 3D, Augmented Reality, and Virtual Photography.

 

 

 

1. 3D Product Models

 

 

Online product experiences are changing. In an ecosystem that prohibits shoppers from going to physical stores (not to mention physical product demos), 3D interactive product models are a must. In 2016, the average customer expected to view 3 pictures of a product before purchasing. By 2019, that number rose to 8. In 2025, it could be 20…

Marc Uible poses the question:

 

“Are you prepared to show your customers 10, 20, even 50 images of a single product? Or could you offer a 3D rendering of a product that can be viewed from every imaginable angle and even placed in a [physical] space?” 

Marc Uible

 

The latter is a frictionless way of providing your customers with the confidence they need to purchase. This is where Augmented Reality comes in.

Imagine you are shopping for a stove on an online appliances marketplace. You don’t know exactly how much space you have, but you know the color and finish you want it to be. What kind of shopping experience do you need to experience to ensure that a stove matches your criteria? Check it out:

 

 

Stove Range

We designed this sample model of an AR stove range to show retailers and manufacturers how popular appliances and machinery can be viewed in a home or business setting from anywhere.

📲 Point your smartphone camera at the QR code to try it out, wherever you are!

 

 

The above 3D model provides shoppers with a way to examine every inch of the product. Unique experiences such as this one provide your customers with not only the confidence to purchase, but the confidence to continue to purchase knowing your online shopping experience is a better one than most.

 

“77% of customers have chosen, recommended, or paid more for a brand that provides a unique or personalized service or experience. Why? Because you’re creating something that feels unique to me. Like I’m in the store or demo, holding the product.”

Meghan Stabler

 

Further, providing interactive 3D renderings for customers to see can help retain customers and cultivate ongoing relationships. Utilizing 3D renderings is great for: 

 

  • Upselling: If extra parts or accessories are available, showing them in tandem with your products so customers can see how and why they should be bought together. Giving customers confidence that you are providing the best service and products keeps them with your brand for life. 
  • Limiting mistakes: When anyone can see what a product looks likes, how it fits in their space, and the parts needed for it there are less mis-orders or mistakes in purchasing. 
  • Service: Make servicing and ordering of new machine parts much easier for customers by utilizing a blown up 3D model that allows them to visualize the part(s) that need servicing.  

 

“Customers are not only going to want these experiences but soon will come to expect that you have them. They will become the standard in eCommerce. If you want to compete with Amazon, you have to provide the same if not better shopping experiences.”

Christopher Yin

 

In conclusion, the main goal of your eCommerce store should be to make customers confident they are making the right decision in their purchase. With 3D models, you can do just that and more. 

 

  

 

2. SaaS eCommerce Platforms for B2B

 

Saas eCommerce Platforms for B2B

  

One of the biggest changes to the B2B buying market has been the change in the buyer demographics. Millennials, the age group of 18-34, are steadily becoming more and more of a percentage of the workforce worldwide. Specifically, becoming B2B buyers and decision-makers more often. In the age of Amazon, this age group is used to and expects great online shopping experiences now. .An eCommerce platform makes making these improvements less complex.

 

“As millennials come up in the workforce and start to have buyer decision making power, they’re starting to say: Hey, I’m on Amazon, TikTok, and YouTube all day, spending a majority of my day online. Can I buy this $50,000 machine that I need for my job online as well? You know, as a purchaser, can I buy it online and can I buy it seamlessly? That’s starting to be a real question in the B2B landscape, it’s pretty clear.” 

Marc Uible

 

“68% of buyers do not want to talk to a sales rep as their first touchpoint,” says Marc Uible, sourced from this Digital Commerce 360 article. “They want to know for a fact, does this company sell what I need and can I be confident it’s what I’m looking for…” the easiest way to do that is with an eCommerce store.

 

SaaS, or Software as a Solution, eCommerce platforms are in-the-cloud solutions that are automatically updated and maintained by the platform themselves. BigCommerce, for example, is a SaaS eCommerce platform that is utilized by both B2B and B2C enterprises like Avery Dennison, Ben and Jerry’s, and SC Johnson for their eCommerce operations. 

 

“In the B2B world, [millennials] experiences and expectations are still of the B2C world. So, we have to adopt the technologies of the B2C [industry] to enable our B2B buyers. B2B businesses are also beginning to expand their operations and their ability to sell direct to consumers as well. That’s where the experiences are going to delight.”  

Meghan Stabler

 

SaaS platforms are the perfect tool for B2B companies to go direct-to-consumer. A platform like BigCommerce can help implement a wide array of feature sets.

Nationwide distributor The Binding Source launched a direct-to-consumer eCommerce operation on BigCommerce and saw the difference within a month, with conversion rate boosts of 170% and a boost to their transaction volume of 33%. Utilizing the SaaS platform’s out-of-the-box B2B features, such as custom product filters and advanced shipping options, allowed the Binding Source to launch a feature-rich store that is still easy to maintain and customize.

 

“Redstage’s mission is to help create digital leaders in eCommerce across industries. We help manufacturers and distributors like The Binding Source sell more and give customers a better online shopping experience.” 

Christopher Yin

 

 

3. Virtual Photography

 

Virtual Photography eCommerce B2B

Visualizing products with multiple customization options can be tricky and expensive. Hours and hours of expensive photography and editing work can be saved by utilizing what’s being called Virtual Photography.

A Virtual Photographer can take a product rendering online and apply all the different customization options to it through CGI and 3D modeling. This saves the time and expense needed for major professional photography by allowing one product file to be customized in an endless amount of ways.

 

“Virtual photography is our ability to take all of those configurations, all of those 3D models, and actually render those out into photorealistic 2D imagery. We created 3 million images for Crate & Barrel in under a month without physical photography, but 3D modeling. So it’s just that amazing, sort of, high-fidelity visual that you can get at a massive scale.” 

Marc Uible

 

 

Virtual Photography Demo for

 

Customers have produced an 80% reduction in online returns and a 20% higher order value on average when Virtual Photography and 3D models are utilized. Why?

In apparel and furniture type applications, textures and fabrics are extremely important in helping customers understand and gain confidence in your product. These photo-realistic 3D models can represent the products more precisely than simple 2D images, thus ensuring customers understand the product they’re getting. 

 

 

4. Augmented Reality for B2B and B2C

 

In Home Retail Augmented Reality

 

3D and photo-realistic models aren’t the only implementations into your product pages that can upgrade your shopping experience. Utilizing Augmented Reality to allow customers to place and view your products in their homes is crucial in a post-COVID eCommerce world. Shoppers in today’s ecosystem are raving about AR, especially in fashion, consumer goods, and even trading cards? The numbers speak for themselves:

 

  • 61% of shoppers said they’d prefer to shop at stores that offer AR 
  • 71% of shoppers would shop at a retailer more often if they offered AR
  • 40% of shoppers said they’d be willing to pay more for a product if they could experience it in AR 

 

Taking 3D models further with Augmented Reality is a powerful way to ensure customers can see the products on them or in their space, like furniture or fashionwear, limiting returns and refunds and increasing customer retention. Retailers have reported that customers who used AR on their sites were 11x more likely to purchase than customers who did not.

 

“The current value of the AR market right now stands at $3.5 billion and is forecast to hit $70 to $75 billion by 2023. Especially AR, in this post-COVID world, has the unique ability to engage your customers like never before. Customers can now virtually experience the look and feel of a product that traditional photographs just can’t match, and differentiates from competitors leaning on photos.”

Christopher Yin

 

In the B2B space, manufacturers and distributors are implementing AR features online and wearables offline to massively increase productivity and efficiency in warehouses. Companies like DHL and and General Electric Renewables are implementing AR overlays on assembly lines and in fulfillment centers. They’re seeing huge boosts, like a 34% improvement in assembly time and a 25% increase in efficiency after implementation.

 

B2B AR Planning

 

AR can also be used to share product proofs and machinery details more quickly and easily to buyers and decision-makers at client companies. If you need consistent feedback from prospects, sending them AR proofs in the form of QR codes makes getting revisions and confirmation from multiple parties faster and gives them all the confidence to close on the decision.

 

 

“What we’ve seen is even when you’re buying a super complex piece of machinery, a QR code to that exact piece of machinery can be sent to your decision-makers and throughout an organization to get threaded into that organization. People see something in AR and say ‘Wow, I can actually see this million-dollar machine in my space, and it works!’ It really drives engagement and confidence in your buyers.” 

Marc Uible

 

 

What to do now…

 

These four commerce upgrading technologies are changing the way customers are experiencing products online. The more confidence your customers have in your products the more likely they are to buy and continue to buy. It is 5x cheaper to retain a customer than it is to gain a new one and providing the best shopping experiences is the number 1 way to retain customers. How do you provide today’s buyers with stunning shopping experiences? Allow them to experience your products in new ways!

 

3D models, Virtual Photography, Augmented Reality and open SaaS platforms are changing eCommerce just as COVID is, and the trends are continuously moving further and further, so don’t get left behind! If you’re stuck, contact an eCommerce consultant today and receive a free 1-on-1 demo of our 3D model and Augmented Reality capabilities.

 

You can view the video recording of our interview with Meghan, Marc, and Christopher here, with live demos and insights from Tony Lopez, Solutions Engineer at Threekit. Contact Redstage here to get a demo of any of the technologies mentioned above.

 

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5 Ways M&D Companies Drive Efficiency & eCommerce with Augmented Reality

5 Ways M&D Companies Drive Efficiency & eCommerce with Augmented Reality

by | Nov 5, 2020 | Commerce Strategy, UX/UI Design, Web Development

With Augmented Reality, manufacturers and distributors can increase:

  • speed of production by 30%
  • speed and accuracy of maintenance by 34% 
  • speed and efficiency of fulfillment by 25%

How are manufacturers and distributors dramatically improving efficiency? Augmented Reality applications for eCommerce allow B2Bs to streamline processes and drive incredible value for buyers. Get the full rundown below or watch the second half of our webinar here.

 

The AR Megatrend: Causes & Effects

 

COVID-19 forced a wave of digital transformation across industry sectors, accelerating the 10-year growth previously projected for the eCommerce market. As B2C companies raced to find new at-home buying experiences, B2B companies jumped on the bandwagon. Companies are realizing the dire need for digital technology.

 

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Emphasizing this point, McKinsey’s “B2B Decision Maker Pulse” states your likelihood of being chosen as the primary supplier for a B2B company increases by 100% when you provide an “outstanding digital experience.” Seeking to meet “New Normal” buyer demands, manufacturers and distributors around the world began investing in 10 key areas, namely Augmented Reality.

Here are the top 5 ways M&D companies are using the technology, not only to increase value for buyers but for employees as well.

 

1. AR for Production

 

B2B AR Production

 

For the biggest B2B brands in the country, Augmented Reality is taking the production cycle to the next level. Shipping leader Cerasis determined that factory workers and engineers utilizing augmented reality in production can increase their accuracy and lower mistakes by up to 96%, and complete work up to 30% faster.

AR allows workers to see blueprints in eye view, shortening the time it takes for quality control. Leaving less room for human error and stopping mistakes before they ever happen. Workers can spot and eliminate defects in manufacturing by scanning products or production machinery from the factory floor or remotely.

Global Creative Director here at Redstage, Christopher Yin, had this to say:

 

“Cut the cost of creating one-off examples for showing customers by utilizing AR. Save money on printing, shipping, and returns while also saving the time wasted waiting for customer approval. Send customers AR [model] links to quickly review and approve orders, netting same-day results, and boosting your bottom line.”

 

2. AR for Maintenance

 

B2B AR Maintenance

 

Shutting down your entire production line to run maintenance on one of your machines can cause huge delays on the assembly line and in production. Household name General Electric Renewables utilized Augmented Reality in their maintenance processes at a wind turbine production plant.

AR allowed engineers to work on wiring on the turbines with an augmented overlay, helping GE Renewables improve assembly time by 34%. They accomplished this by using AR to overlay correct wiring conditions over the current project. Technicians at GER are also using voice recognition to identify wiring and determine correct placements, limiting mistakes and potentially harmful accidents.

Engineers can scan over machinery using AR and view necessary information directly in their eye view. From last maintenance date to specific areas there may be a malfunction, augmented reality is keeping engineers safely out of harm’s way while also massively reducing maintenance time.

 

3. AR for Planning

 

B2B AR Planning

 

For sellers of large machinery like assembly lines or presses, the best way to ensure you have the space planned out correctly is to see the machine through an augmented reality lens. In a scientific research report titled, Virtual Planning, Control, and Machining for a Modular-Based Automated Factory Operation in an Augmented Reality Environment, researcher Yun Suen Pai and colleagues outline the importance of minimal friction and misplacement between machinery in a large production area.

According to the report, “AR was used to aid the planning process of manufacturing systems with the key advantage of modeling 3D objects in the actual factory. By using AR as a form of user interface, any user will be able to freely manipulate the overall layout design on a table-top, which is extremely user-friendly.”

In other words, place the machine virtually in the space you have for it beforehand, without the hassle of measurements or human error. Plan for your warehouse move or upgrade with AR before you do it, and limit headaches if there is a mishap. Hololens by Microsoft is even allowing remote teams to get a hands-free view of factories and warehouses, giving managers the freedom of focusing on their plans.

 

4. AR for Virtual Product Models

 

AR B2B Model

 

Jon Wade, Head of Augmented Reality and VR at Shopify, shed some light on the thoughts of buyers when viewing products in 3D. He said that “…when visitors viewed a product in AR before making a purchase, they were 65% more likely to complete that purchase.”

We’ve also designed AR experiences that allow DTC appliance companies to show off their appliances, like coffee machines and stoves, to buyers from the comfort of their own home. The same way manufacturers would plan where machinery would go in a large production warehouse or factory, homeowners want to plan where a new stove or coffee machine will go in their kitchen before buying. View a new appliance in 3D, place it on your counter, move it around and make sure your buyers are confident in their purchase to avoid buyer’s remorse and increase satisfaction.

 

Stove Range

We designed this sample model of an AR stove range to show retailers and manufacturers how popular appliances and machinery can be viewed in a home or business setting from anywhere.

📲 Point your smartphone camera at the QR code to try it out, wherever you are!

 

 

This is the same for B2B buyers as well. Whether you’re selling large industrial appliances to restaurant chains or construction equipment to job sites, utilizing 3D models and Augmented reality for your products can give your customers confidence in their purchase. 

 

5. AR for Supply Chain and Logistics

 

B2B AR Logistics Shipping Supply Chain

 

Distribution juggernaut DHL is making a staggering $300 million investment in AR technology, accelerating their investment in AR and other technologies. DHL Supply Chain North America CEO Scott Sureddin said, “This investment is about a holistic view of emerging technologies that enable our customers to achieve their growth and profitability goals… Therefore, it is important that our customers can benefit from our experiences and expertise with a variety of emerging technologies.”

DHL successfully carried out a project testing smart glasses and Augmented Reality in one of their warehouses. The technology was used to implement ‘vision picking’ in warehousing operations. Their staff members were guided through the warehouse by graphics displayed on the smart glass to speed up the picking process and reduce errors. The project resulted in a 25% efficiency increase during the picking process.

 

The Fastest Way to Implement AR

Augmented Reality is growing in adoption from buyers and sellers alike. Don’t fall behind your competition, be the first in your space to implement AR in both your warehouses and online buying portals. Watch this on-demand webinar with our Creative Director Christopher Yin and Shopify’s Head of AR and VR Jon Wade for the full story, on how AR is changing eCommerce in B2C and B2B alike.

 

 

SCHEDULE A DEMO

Schedule Your 1-on-1 Augmented Reality Demo

You’ve heard from our AR experts in this article, now connect with them to get a free personalized demo of what Augmented Reality can do for you!

Schedule a call with Anthony

 

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