Augmented reality (AR) and virtual reality (VR) transform e-marketing by creating immersive brand experiences that enhance consumer engagement. This study examines how these technologies bridge the gap between digital and physical shopping, enabling innovative applications like virtual try-ons (e.g., Ray-Ban’s FIT3D app) and interactive advertisements (e.g., Marriott’s VR travel experiences). While AR/VR demonstrate significant potential to boost conversion rates and reduce product returns, their adoption faces critical challenges: (1) ethical concerns regarding data privacy and emotional manipulation, (2) technical barriers like device costs and motion sickness, and (3) consumer distrust of opaque data practices. We propose actionable strategies for ethical implementation through an integrated framework combining the Reality-Virtuality Continuum, Consumer Trust Theory, and the Technology Acceptance Model (TAM). Key recommendations include transparent consent protocols for biometric data collection, standardised AR/VR advertising disclosures, and consumer education initiatives. Our findings underscore the need to balance technological innovation with ethical safeguards to foster long-term consumer trust in immersive e-marketing.