Since the boom in e-commerce, there has been a booming interest in the potential of immersive and interactive technologies as a means to fill the sensory gap that exists between the real-life shopping and online buying experiences. Augmented Reality (AR) has become a disruptive technology which is used to add digital content to the natural environment and provides online shoppers with a more realistic, interesting and informed decision-making process. In this paper, the author will address how AR transforms online shopping experience by improving product visibility, increasing consumer trust and minimizing unwanted product returns. As a result of literature analysis and current AR-based shopping interface applications on the range of e-commerce platforms, the study examines the psychological and behavioral effects of utilizing the AR-based shopping interface. The increasing significance of the technology within the contemporary retail strategies can be proven by a comparative analysis of user experience, conversion rates, and the levels of user satisfaction before and after the implementation of the AR technology. The results indicate that there is a major potential of AR as defining online consumer engagement and it provides competitive edge to retailers that embraced it early