Virtual shopping from Swedish firm Klarna connects online shoppers directly with experts in physical stores through live video and messaging, to provide a more personalised experience.

By placing human interaction at the centre of the online shopping journey, virtual shopping lets retailers create immersive experiences that can increase customer engagement, reduce returns and drive loyalty.

Already live with more than 300 brands including Levi’s and Hugo Boss, Klarna has now introduced virtual shopping globally to its more than 400,000 retailer customers.

Klarna is a retail bank, payments and shopping service. Its virtual shopping offering lets consumers browse and buy online with confidence by connecting them directly with in-store experts through live chats and video calls to receive product advice and inspiration. For retailers, in-store teams can bring their expertise beyond the walls of physical stores to millions of shoppers online.

By using the merchant-facing Klarna Store app, in-store teams can share photos and videos of items and demo products live directly from the store floor, from home, or even from emerging dark store concepts. This in turn drives brand engagement and loyalty while reducing return rates. The launch builds on the acquisition of Hero, a social shopping platform and specialist in virtual shopping services, last year.

While online shopping has risen to new heights in recent years, in-store shopping remains the dominant channel, accounting for nearly 80% of global retail sales in 2021. According to findings from Klarna, consumers favour shopping in physical stores because of the social interaction and level of customer service they offer. Unlike shopping in-store, the online experience does not allow consumers to see a product up close, touch or try on items, making it hard to tell if products are true to size, fit or colour.

Consumers today are looking for the same level of assistance when shopping online, with over three-quarters (78%) of US shoppers believing online retailers need to invest in technology to create more personalised services (45%) and product recommendations (40%).

Klarna’s virtual shopping tools are already live with over 300 brands, including Levi’s, Hugo Boss and Herman Miller, transforming online stores into an omnichannel experience. Consumers can shop anything from shoes to sofas without stepping foot in store, but still receive expert guidance from in-store teams to help them in their purchasing decisions.

Through live video and messaging, consumers can view photos and videos of items up close and watch live product demos directly from the store floor, demonstrating everything from how a piece of clothing fits off the rack to the colour of a cosmetic product or the size of a piece of furniture.

“At Klarna, we want to provide the world’s best shopping experience, whether that is online or in-store,” said David Sandström, chief marketing officer at Klarna. “In the past, online shopping has been missing a key element: human interaction. With virtual shopping, we replicate the brick-and-mortar experience of receiving personalised advice from an in-store expert and bring it to the online realm. This will empower our partnered retailers around the world to bring their online stores to life and build customer relationships that last.”

Klarna is making virtual shopping available to partnered retailers worldwide, serving as an online shopping companion for consumers and strengthening Klarna’s position as a partner to its retailers. By giving consumers greater confidence in their purchasing decision, the service improves performance for merchants, with consumers up to 21 times more likely to make a purchase after speaking with an in-store expert online compared with when left unassisted, while also increasing customer lifetime value.

Shoppers connect with an in-store expert when they click the virtual shopping icon on integrated stores from the retailers’ web sites. Once connected, they can chat, receive photos and videos, follow product recommendations, and even have a two-way video chat, recreating the experience they would receive in store.

Retailers can add virtual shopping to their online stores to deliver an omnichannel experience. Once enabled, they can gain insights into shopper interactions and sales, enabling them to improve overall performance. To connect with online shoppers, in-store experts can use the, merchant-facing Klarna Store app for iOS and Android. Once connected, they can begin engaging with consumers by text, chat and video, making it easier to provide personalised recommendations, schedule in-store appointments and stay in touch.

Virtual shopping is live in 18 countries: USA, Canada, UK, Australia, New Zealand, Norway, Denmark, France, Poland, Netherlands, Belgium, Germany, Austria, Switzerland, Spain, Portugal, Italy and Sweden. The offering will extend to additional countries later this year.

Since 2005, more than 400,000 global retailers have integrated Klarna’s technology to deliver a seamless shopping experience online and in-store. With over 5000 employees, Klarna is active in 45 markets and has a valuation of $45.6bn.