The Metaverse Will Revolutionize How We Shop and Sell
business research10 min read2,074 words

The Metaverse Will Revolutionize How We Shop and Sell

The metaverse enables immersive, real-time shopping experiences that blend digital and physical retail. This shift requires new strategies for customer engagement and sales.

K

Karan Mehta

Ex-strategy consultant who worked on corporate restructuring for a decade before...

The Metaverse Will Revolutionize How We Shop and Sell

metaverse retail experience
metaverse retail experience

Imagine walking into a store where the shelves rearrange themselves based on your mood. The lighting shifts to match your aesthetic. The salesperson knows your name, your size, and exactly why you came in today. You can try on a jacket without taking your jacket off. You can see how that sofa would look in your living room without leaving your actual living room.

Now imagine none of this happens in physical space. It happens in a persistent, shared digital world where you move around as an avatar. The store exists in the metaverse. And according to a 2022 paper in Psychology and Marketing by Yogesh Dwivedi, Laurie Hughes, Yichuan Wang, and Ali Abdallah Alalwan, this shift is not science fiction. It is a research agenda that is already reshaping how consumer psychologists and marketers think about buying and selling.

The paper, which has already accumulated over 800 citations, synthesizes insights from dozens of expert contributors. It does not predict the future. It maps the terrain. And what it finds is that the metaverse will not just change what we buy. It will change how we decide.

What Actually Happens in a Metaverse Store?

digital marketplace avatar
digital marketplace avatar

Most people think of the metaverse as a place to play games or attend concerts. That is like thinking of the internet as a place to send emails. The metaverse, Dwivedi and colleagues argue, is a persistent, shared, three dimensional virtual space where users interact with each other and with digital objects. It is not a single platform. It is a collection of interconnected worlds.

The authors identify four core features that matter for shopping:

  • Presence. You feel like you are actually there. Not watching a screen. Standing inside the experience.
  • Embodiment. Your avatar is not just a cursor. It has a body. It moves. It gestures. It occupies space.
  • Persistence. The world does not reset when you log off. Your purchases, your history, your relationships remain.
  • Interoperability. Ideally, your avatar and your digital assets travel across different platforms. Your Nike sneakers in one world should work in another.

These features change the psychology of shopping in ways that physical stores and two dimensional websites cannot replicate.

Why Trying On a Digital Jacket Is Different Than Looking at a Photo

immersive shopping environment
immersive shopping environment

The paper zeroes in on something that sounds obvious but is actually profound: experience matters more when you feel present.

In a physical store, you can touch the fabric. You can see how the light catches the stitching. You can ask a friend for their opinion. In a two dimensional online store, you get a stock photo and a size chart. The gap between those two experiences is why most clothing purchases still happen in person.

The metaverse closes that gap. When your avatar tries on a jacket, the jacket moves with you. It drapes. It wrinkles. It responds to your movements. The authors describe this as a shift from information based decision making to experience based decision making. You are not evaluating a product based on a list of features. You are evaluating it based on how it feels to wear it.

This matters because human decision making is not rational. It is embodied. We think with our bodies. We feel confidence in a jacket because it fits well and moves with us, not because the product description says "breathable fabric." The metaverse allows brands to tap into that embodied cognition.

The New Advertising: Not a Billboard, a World

Dwivedi and his coauthors argue that advertising in the metaverse will not look like ads. It will look like environments.

Consider a brand that sells hiking boots. In a traditional ad, you see a photo of a boot on a mountain. In the metaverse, the brand builds a mountain. You climb it. You feel the grip of the boot on the virtual rock. You notice how your feet do not slip. You look down and see the boot on your own avatar's foot.

The authors call this "experiential branding." The product is not shown to you. It is lived by you.

This creates a paradox for marketers. On one hand, the immersion is incredibly powerful. On the other hand, the line between content and advertising blurs completely. If a brand builds a beautiful forest and you spend an hour walking through it, are you being advertised to? Or are you having an experience that happens to include a product?

The paper does not answer this question. But it raises it as one of the central tensions that consumer researchers will need to grapple with.

How the Metaverse Changes What We Buy

The authors identify three categories of products that will be most affected.

Digital Goods That Are Just Digital

Some products only exist in the metaverse. Avatar clothing. Virtual furniture for your virtual home. Digital art. These are not replicas of physical objects. They are native to the digital world.

The paper notes that this market is already huge. In 2021, people spent over $50 billion on virtual goods. That number is growing. Dwivedi and colleagues argue that the psychology of buying a digital jacket is different from buying a physical one. You are not buying utility. You are buying identity. Your avatar is a representation of yourself, and what it wears signals who you are in that world.

Physical Goods That You Try On Digitally

This is where the revolution gets real. The authors point to research showing that people who try on products in virtual environments are more likely to buy the physical version. They are also less likely to return it.

Why? Because the virtual try on reduces uncertainty. You know how the jacket fits. You know how the sofa looks in your space. That confidence translates into purchase intent.

Services That Become Experiences

The metaverse will also transform services. A real estate agent does not show you photos of a house. She walks you through it. A travel agent does not describe a hotel room. She places you inside it. A personal trainer does not show you a video of an exercise. She stands next to you in the virtual gym.

The authors argue that services in the metaverse shift from being information rich to presence rich. And presence, as any good salesperson knows, is what closes the deal.

The Dark Side: What Happens to Your Data?

Dwivedi and colleagues do not ignore the risks. In fact, they devote a significant portion of the paper to consumer wellbeing.

The metaverse collects data that makes current advertising look primitive. A website knows what you clicked. A metaverse platform knows where you looked, how long you lingered, what made you smile, what made you turn away. It tracks your gaze, your posture, your emotional responses. It knows which products you picked up and which ones you ignored.

The authors call this "biometric marketing." It is not about what you say you want. It is about what your body reveals.

This raises obvious privacy concerns. But the paper frames the issue in a more interesting way. The authors argue that the metaverse will force consumers to develop a new kind of literacy. We are used to protecting our personal information. We are not used to protecting our behavioral data. We do not think about the fact that our avatar's hesitation in front of a product is a signal. But it is. And it is being collected.

The paper calls for policy frameworks that treat this data differently from traditional browsing data. Whether that happens is an open question.

What the Research Does Not Prove

It is important to be clear about what this paper does not claim.

It does not claim that the metaverse will replace physical stores. In fact, the authors suggest the opposite. Physical stores will become more experiential, more focused on the things that cannot be replicated digitally. The metaverse handles the try on. The physical store handles the connection.

It does not claim that every brand needs a metaverse presence. The authors are careful to note that the technology is still immature. The user base is small. The platforms are fragmented. For most brands, the smart move is to watch, not to jump.

And it does not claim that the metaverse will make shopping more efficient. In fact, it might make it less efficient. If you can spend an hour walking through a virtual forest to decide whether to buy a pair of boots, you will spend that hour. The metaverse rewards exploration. It rewards lingering. That is great for engagement. It is terrible for a quick transaction.

The paper is a map of possibilities, not a prediction. It tells you where the terrain might lead, not where it will definitely go.

How the Study Was Done

The paper is not a single experiment. It is a synthesis. The authors gathered insights from a panel of expert contributors, each of whom brought their own research and perspective. They then organized those insights into a framework that identifies key research directions.

This methodology has strengths and weaknesses. The strength is breadth. You get a comprehensive view of the field. The weakness is that the conclusions are not based on new data. They are interpretations of existing work.

The authors are transparent about this. They describe their paper as a "research agenda," not a final answer. They are saying: here is what we know, here is what we do not know, and here is what we need to find out.

The Framework: Four Pillars of Metaverse Marketing

The paper proposes a framework with four pillars.

Digital Marketing and Advertising

The first pillar is about how brands reach consumers. The authors argue that traditional advertising models break down in the metaverse. You cannot interrupt someone who is immersed in an experience. You have to become part of the experience.

Branding

The second pillar is about identity. In the metaverse, a brand is not a logo. It is a world. The authors suggest that brands will need to think of themselves as architects, not advertisers. They build environments. They create experiences. The logo is just the door.

Services and Value Creation

The third pillar is about what consumers get out of the interaction. The metaverse allows for new forms of value. You can buy a digital product and then resell it. You can customize a product and then share it. You can participate in the creation of a product, not just its consumption.

Consumer Wellbeing

The fourth pillar is about the risks. The authors are clear that the metaverse can be addictive. It can be manipulative. It can exploit psychological vulnerabilities. They call for research that balances the commercial potential with the ethical obligations.

What This Actually Means

The Dwivedi et al. paper is not a how to guide. It is a framework for thinking. Here is what it means for people who actually build, buy, or sell things.

  • If you are a brand, stop thinking about the metaverse as a place to put ads. Start thinking about it as a place to build worlds. The most successful metaverse experiences will not look like commercials. They will look like places people want to live in.
  • If you are a product designer, start thinking about digital twins. Every physical product you create should have a digital version that can be tried on, tested, and experienced in virtual space. That digital version is not a marketing tool. It is a sales tool. People who try it digitally buy it physically.
  • If you are a consumer, start paying attention to what your body reveals. The metaverse will track your gaze, your posture, your emotional responses. That data is valuable. Treat it like you treat your credit card number. Guard it.
  • If you are a policy maker, start thinking about biometric data as a protected category. Current privacy laws do not cover the kind of data the metaverse collects. The Dwivedi paper is clear: this is not a future problem. It is a present one.
  • If you are a researcher, the checklist is your starting point. The paper ends with a detailed research agenda. It lists specific questions that need answers. Pick one. Run the study. The field is wide open.

The metaverse will not just change how we shop. It will change how we decide what we want. And that is a much bigger shift than any technology could deliver on its own.

References

  1. [1]Yogesh K. Dwivedi, Laurie Hughes, Yichuan Wang, Ali Abdallah Alalwan (2022). Metaverse marketing: How the metaverse will shape the future of consumer research and practice. Psychology and MarketingDOI· 815 citations
#metaverse#retail#e-commerce#digital transformation
K

Karan Mehta

Ex-strategy consultant who worked on corporate restructuring for a decade before starting to write. Covers org behaviour, leadership research, and the management science that actually holds up.

Reader Comments (2)

Dr. Priya Sharma★★★★★

Interesting take. As a retail researcher, I see potential for virtual try-ons reducing returns, but India's data privacy laws and digital divide could slow adoption. Have you considered offline-first integration for tier-2 cities?

Ravi Menon★★★★★

I run an e-commerce startup. Metaverse demos sound cool, but our users still struggle with mobile payments. Maybe focus on AR for product previews first—lower bandwidth, higher trust. Curious about your cost-benefit analysis for small sellers.

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