The concept of metaverse, enabled by immersive technologies, has garnered significant attention from users, scholars, industry professionals, and other stakeholders. The constant evolution of consumer behavior toward online consumption has led to a transition from traditional e-commerce to immersive commerce (i-commerce), highlighting a significant shift across various fields, such as marketing, social interaction, fashion, tourism, and entertainment. Despite the growing discourse on Metaverse, the term is often used interchangeably with Virtual Reality (VR), leading to conceptual ambiguity. However, there are clear distinctions between the two terms. This study aimed to provide a comprehensive understanding of Metaverse and establish its boundaries in relation to VR. It seeks to eliminate uncertainties surrounding the differentiation between these concepts. This study provides a comprehensive metaverse definition by synthesizing the scholarly literature on the topic. This study states the dominance of the metaverse as a powerful tool that leads to critical societal changes in the digital transformation era. It claims that while VR is a foundational technology that enables immersive experiences, Metaverse extends beyond VR by encompassing the broader socio-technical systems of AR, blockchain economies, and AI-driven interactions. Furthermore, this study serves as a valuable resource for both academic discourse and practical applications by providing a structured framework for defining Metaverse and VR and positioning it within its suitable context. This paper concludes by highlighting future research directions in the evolving landscape of virtual environments.