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Luxury e-commerce converts at 0.7%—leaving 99.3% of visitors unconverted. The problem isn't traffic or products. It's the confidence gap between browsing and buying a high-value item online.
Luxury fashion has a conversion problem that no amount of marketing spend can solve. Online conversion rates hover at 0.7-0.8%—nearly 3x lower than general fashion's 2-3%.
The luxury shopping experience has always been built on confidence: touching fabrics, seeing how pieces drape on your body, receiving personalized guidance. Virtual try-on can deliver the visualization that builds purchase confidence for high-value decisions.
0.7%
Luxury e-commerce conversion
$3.10
Revenue per visitor (highest)
40%
Of market under 40 years old
At luxury price points, even modest conversion improvements create substantial revenue impact.
Monthly Revenue Lift
$75K
+75% growth
Returns Avoided
$3K/mo
88 fewer returns
Annual Net Impact
$848K
Total benefit per year
*Projections based on industry research. Actual results may vary based on implementation and product category.
Luxury apparel converts at 0.7-0.8%. Luxury handbags convert at 0.3-0.5%.
For every 1,000 visitors to a luxury fashion site, 993+ leave without purchasing.
The paradox: luxury's low conversion is partially offset by high AOV and revenue per visit ($3.10—the highest in e-commerce). But every unconverted visitor at $1,000+ AOV represents substantial lost opportunity.
Model images show how garments look on an idealized form. VTO shows how they'll look on you.
"Will this suit me?" is the question that stalls luxury purchases. VTO answers it definitively.
Luxury shoppers often seek complete looks, not individual pieces. VTO enables visualization of how items work together.
| Scenario | Conversion Lift | AOV Increase | Return Reduction |
|---|---|---|---|
| Conservative | +25% | +10% | -10% |
| Moderate (Expected) | +50% | +20% | -15% |
| Aggressive | +100% | +35% | -25% |
Luxury fashion's digital conversion challenge isn't about traffic, pricing, or product quality. It's about confidence. Virtual try-on brings the visualization component online.