NexTech AR Solutions has launched its AR eCommerce platform and has signed an integration deal with ParcelPal.
The company, which is engaged in the creation of AR ecosystems with a focus on eCommerce solutions for websites, said on Thursday (January 17) that the launch of the platform and the integration deal will help both companies make an impact on the market.
NexTech is set to create custom dashboards featuring its xAPI analytics for ParcelPal, enabling the eCommerce site to gain insights into users’ behavior. The xAPI tracks users’ movement, including the time they spend on a particular product and clickthrough rates.
“With integration of our AR eCommerce on their platform all their merchants will be able to offer 3D-AR product viewing leading to higher conversion rates and sales giving ParcelPal and their partners a real edge against the competition in the on-demand delivery marketplace,” Evan Gappelberg, CEO of NexTech, said in the release.
According to NexTech, the xAPI on ParcelPal will be used in conjunction with the IBM Watson (NYSE:IBM) integration that the company initially announced in December 2018. It is set to augment the company’s current artificial intelligence (AI) and AR developments.
In December, the company said that its development team had begun to integrate IBM Watson’s machine-learning algorithms into its AR solution. Through the AI integration, the solution will be able to scan the body as well facial features to understand users’ style and behavior. The AI integration will also mean that the program could act as personal shopping assistant.
NexTech expects that the AI features will begin to roll out into its AR solution in February 2019.
Speaking to the Investing News Network, Gappelberg said that the addition of machine learning gives NexTech increased assets in its toolbox.
“It really does enhance our position and enhance our offering,” he said. Gappelberg added that the company has begun to integrate its AR solution on numerous sites aside from ParcelPal.
“There’s a number of sites that we already integrated on, and the result has been nothing less than phenomenal in terms of the conversion rates,” he said. “We have one site that we were on where they sell vacuum cleaners. In one week, they sold as many as vacuums as they usually sell in a month after they AR-itized the product.”
Gappelberg said that the company didn’t expect to make a difference in the vacuum cleaner space, but the positive results encouraged it to acquire the site.
The purchase came on Tuesday (January 15), and the business is said to have generated approximately US$2.65 million in revenue in 2018, plus US$115,000 to date in January.
“It’s a very big deal and sets a stage for additional acquisitions,” Gappelberg said. “If we could buy an eCommerce business and increase the velocity of sales by integrating our technology, both AI and AR, it’s a win-win for us.”
Gappelberg noted that the company would gain from any acquisitions in multiple ways, including the increase in value from the additional finances. It would also benefit from the extra data that it would get from integrating its solutions.
The company’s solution can be implemented on any eCommerce site with few lines of code. Gappelberg said a programmer isn’t needed to add the codes, and that upon implementation the products on the site are transformed into shoppable 3D AR objects.
“When you’re buying a $1,000 vacuum cleaner, for instance, you’re not quite sure what it’s going to look like out of the box fully assembled, and you’re not quite sure how it’s going to look in your home,” he explained. “AR bridges the gap.”
Gappelberg said that people like to go retail stores because they want to be confident in the item they are purchasing in terms of the look, size or color; however, AR eliminates those restrictions.
“We have a first-mover advantage in an industry that’s growing at an 86-percent compound annual growth rate, and we launched the first universal solution for the eCommerce industry that works on every browser and every computer and every mobile device,” he said.
Kelly Abbott, CEO of ParcelPal, said in the release that the company realized the potential of the collaboration after working with NexTech.
“After spending significant time with the NexTech team we realized that including Augmented Reality in our eCommerce app and soon-to-be launched website we will give both NexTech & ParcelPal a significant edge in the eCommerce space resulting in a differentiated offering that doesn’t exist currently for our merchant partners and their consumers,” Abbott said.
Following the announcement, shares of NexTech remained unchanged and closed the trading session on Thursday at C$0.79. The stock has a “buy” ranking on TradingView with 11 verticals in favor, 10 in neutral and three against.
Meanwhile, shares of ParcelPal were down 1.82 percent and closed the day at C$0.27. The stock has a “buy” ranking on TradingView with 12 verticals in favor, nine in neutral and seven against.
Image courtesy of NexTech AR Solutions.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.