Thank You For Shopping With Metaverse: The New Ecommerce Marketplace
Following Mark Zuckerberg’s characteristically robotic announcement that Facebook will be rebranding under the name Meta, people have been simultaneously curious, cautious and opportunistic at what the Metaverse could mean for the future of human interaction. While some see the Metaverse as nothing more than a passing fad, many online retailers are asking themselves how they can tap into this emerging marketplace.
While online shopping represents the virtue of convenience, it lacks the immediacy and assurance of purchase that in-store shopping provides. However, the pandemic made it clear that e-commerce was not only a convenience, but a necessity.
Online purchases increase year by year, taking a growing share of total retail sales. As of 2020, e-commerce represented 19.6% of total retail sales, up from 15.8% the previous year. This represented a total of $792B. This number is only expected to increase, but the issue still remains, without full interactive product experience, can e-commerce ever take the lion’s share of the profits? Some are theorizing that the Metaverse could bridge this gap between brick-and-mortar and online shopping.
What is the Metaverse, exactly?
Is the Metaverse a new frontier, or a sci-fi dystopian descent into the perpetual isolation of virtual reality? Maybe it’s both. We’re just kidding, probably. We’re not in a Black Mirror episode just yet.
At its apex, the Metaverse is a fully-sensorial virtual world that is practically indistinguishable from reality. If that’s the end goal, the Metaverse isn’t even in its infancy, it's in the womb. Hell, we haven’t even made it to third base. What we do have is a framework, the DNA of what it could potentially accomplish.
At this moment, we can define the Metaverse as a collection of electronic goods, services, and currency operating seamlessly with each other in a cohesive virtual system. While its culmination still has a ways to go, the concept itself is nothing new.
A Brief History of the Future
The Metaverse first got its name from a 1992 novel by Neal Stephenson, Snow Crash. But, the fantasy of virtual reality dates back to sci-fi writing in the 60s. In Snow Crash, the Metaverse refers to a virtual reality where people go to disconnect from a dystopian civilization. In this world, people are represented by avatars and money is in the form of cryptocurrency. Clearly this is an early manifestation of Zuckerberg’s goal. One early indicator of Zuckerberg’s intention was his purchase of Oculus in 2014.
As computer science began to evolve rapidly, so did the fascination with the potential of digital technology. This was often represented in popular culture: films like Tron (1982), Total Recall (1990), and of course how could we forget the nightmare-fuel that is a future of a servile existence under a robot engineered reality, A.K.A The Matrix (1999).
Fantasy aside, only time will tell the full potential of the Metaverse. What we can say at the moment is that it does present an opportunity for profit, and any true entrepreneur has their ears to the ground for advancements in the field of artificial intelligence and virtual reality.
Early Ecommerce Players In The Metaverse
Several companies are testing the waters of AR/VR technology by creating a virtual experience into the physical space. For example, I recently used Amazon’s augmented reality feature to purchase a couch. Using the tool, I could see that that 86” couch fit into the space between two doors in my living room. Also, the burnt orange velvet couch looked great with my southwestern/eclectic decor.
Other brands are also following suit. Warby Parker is now offering a virtual try out feature for its glasses. With our clients, Amazing Cosmetics, we implemented a selfie-based shade finder quiz in February 2021. Many other brands like Doe Lashes have also started incorporating virtual reality into personalized recommendations.
The real-life translation is something that customers are craving, and brands cannot ignore the utility in this function. If done correctly, this could mean higher conversion, less refunds and greater customer satisfaction. Tech savvy consumers are already becoming familiar with these features. Today, 61% of online shoppers say they prefer to buy from e-commerce stores that have some form of A/R technology.
Gamification And Ownership in the Metaverse
Along with the Metaverse, NFTs have become another hot topic in digital commerce and virtual ownership. These non-fungible tokens, often proving ownership of unique digital art, have sold for millions of dollars. NFTs rely on the same blockchain technology as cryptocurrencies like bitcoin, but cannot be traded for equal value.
Additionally, people today are very familiar with virtual immersion when it comes to video games. The Sims came out in 2000 as one of the pioneers in strategic life simulation games, and it still has a cult following today.
It’s a tale as old as time. People enjoy losing themselves in fantasy. The amount of people increasingly becoming interested in immersive life-simulating gaming is on the rise. Personally, the amount of hours I spent playing Legend of Zelda: Breath of the Wild probably equals three months of my life.
Along with the aesthetic glow-up of gaming, gamification, or the process of engaging the player to reach a new milestone, has become even more monetized. The mobile marketplace sells tokens for hints and upgrades. Video game giants offer expansion passes and exclusive content.
Inevitably, this is a market that retailers will have to tap into. Millennials and Gen Zers are tech-savvy and demand high-touch digital experiences. As technology evolves so will their expectations.
What Retail Could Look Like In The Metaverse
By 2035, Mark Zuckerberg thinks we will be able to smell in the Metaverse. But in my humble opinion, we’re probably not there yet. What is more realistic is billboard-style advertising and virtual store experiences through an immersive virtual world.
As the Metaverse becomes more advanced, online stores could potentially offer V/R immersions to their customers. Imagine strapping into a V/R headset and “walking” into Sephora, with an avatar makeup artist to help you with your shopping and your skin tone already on file to match you with every brand that is in stock with your shade.
It’s a personalized shopping dream, but something that still requires years of testing and perfecting. Though it’s not at that level, many major e-commerce retailers are investing in what they see as an inevitable technology.
As digital marketers we know that segmentation and personalization are known conversion drivers. The Metaverse represents potential to take that a few steps forward. Cryptocurrencies, NFTS and immersive role-playing gaming are all growing interests among young e-commerce consumers, and that population continues to grow and become more knowledgeable. It’s inevitable that e-commerce brands follow suit. In the years to come, we can expect many brands to offer complete virtual experiences.
