Video commerce involves the use of videos, often in the form of product videos, live streams, and video demonstrations, to promote and sell products or services online.
It plays a significant role in changing e-commerce marketing by offering a more immersive, interactive, and engaging shopping experience.
By using videos, ecommerce businesses can connect with customers on a deeper level, build trust, and drive conversions through visual storytelling and personalized content.
As technology continues to advance, the role of video in e-commerce is likely to expand even further.
Here are some key roles and benefits of video commerce in e-commerce:
A significant majority of marketers, comprising 87%, have reported that implementing video content has led to increased website traffic, while 86% have found it to be effective in generating leads.
Another 81% of marketers concur that video has had a direct impact on boosting their sales.
Below, we’ve not only explored the roles and advantages of video commerce, but also delved into its practical applications for enhancing your e-commerce strategy in the next section:
1. Product Visualization and Enhanced Product Demonstration
Video allows businesses to showcase their products in a more dynamic and engaging way compared to static images. Customers can see products from different angles, get a better sense of size, see products in action, and get a better understanding of how a product works, its size, and features. This can reduce cart abandonment and increase customer confidence in making a purchase.
2. Better Customer Engagement
Videos capture attention more effectively than text or images and keep your customers on your website longer. They can be used for product demonstrations, reviews, and tutorials building a deeper connection between brands and consumers.
Live video streams and interactive videos can also foster real-time engagement and interaction with customers.
3. Storytelling
Videos provide a platform for businesses to tell compelling stories about their products or brand. This emotional connection can resonate with customers and create a stronger brand loyalty.
4. Cross-Selling and Upselling
Videos can be used to recommend related products or upsell complementary items, increasing the average order value.
5. Reviews and Testimonials to Build Trust
Customer reviews and testimonials in video format can be more convincing and trustworthy than written reviews. Video content, especially user-generated reviews and unboxing videos, can build trust and authenticity. Because they allow potential customers to see and hear from real people who have used the product. That’s why customers often rely on these videos to gauge the quality and usability of products before making a purchase.
6. SEO and Discoverability
Search engines often prioritize video content. 87% of marketers say video has boosted their traffic, while those who use videos report an 82% increase in dwell time.
By incorporating video into your e-commerce strategy, you can improve your search engine rankings and increase your visibility online.
7. Enabling Social Commerce and Social Media Promotion
Video content is easily shareable on social media platforms. Creating shareable videos can help your products reach a broader audience through social sharing.
And because social media platforms have integrated video commerce features, this has opened ways for retailers to sell products directly through their social profiles, allowing a seamless shopping experience within the social media ecosystem.
Source: FedEx 2023 e-commerce trends to watch report
8. Personalization
E-commerce platforms are using video to personalize the shopping experience. By analyzing customer data and preferences, brands can recommend relevant videos and products, increasing the likelihood of conversion by making the shopping experience more tailored and relevant.
9. Increased Mobile-Friendliness
With the increasing use of mobile devices for online shopping, video commerce is easily accessible to consumers on the go, making it ideal for reaching mobile shoppers.
Short-form videos, like TikTok and Instagram Reels, are particularly effective in capturing mobile users’ attention and driving sales.
10. Reducing Returns
Clear and informative product videos can help customers make more informed purchasing decisions, reducing the likelihood of returns due to mismatched expectations.
11. Better Analytics and Insights
Video commerce platforms such as Vimmi often provide detailed analytics, allowing businesses to track the performance of their video content.
This data can be used to refine marketing strategies and improve conversion rates.
12. Live Shopping to Boost Sales
Live streaming and video shopping events enable real-time interaction between sellers and buyers.
Customers can ask questions, receive instant responses, and make purchases during live broadcasts, creating a sense of urgency and excitement.
By offering live stream shopping experience, ecommerce brands can boost conversions and drive brand awareness and improve customer experience.
13. Enhanced Global Reach
Videos transcend language barriers, making it easier for businesses to reach a global audience. As cross-border ecommerce is expected to grow more, it makes more sense for retailers to incorporate videos into their marketing and selling strategies.
Source: FedEx 2023 e-commerce trends to watch report
Pro Tip: Try including subtitles and translations to further expand the reach of video content.
14. Increased Brand Awareness
Video is a powerful tool for enhancing brand awareness because it allows you to communicate your brand’s message in a way that is engaging and memorable. That’s why 93% of marketers say video has improved brand recognition.
By using video, companies can showcase their brand’s personality, values, and unique selling points in a way that resonates with your target audience.
This can help to build trust and loyalty, as well as increase brand recognition and recall. Additionally, video content is highly shareable, which can help to amplify the brand message and reach new audiences.
16. Use of Augmented Reality (AR) and Virtual Reality (VR)
AR and VR technologies are being integrated into video commerce, enabling customers to virtually try on products or experience them in a virtual environment before making a purchase decision.
Among many brands that already have adopted this technology, we wanted to highlight how Carl Zeiss Stiftung is using a new technology in ophthalmic optics called “Virtual Fitting” to improve the frame selection process for patients and make it more convenient and efficient.
With Virtual Fitting, the frame selection process is done on a screen, rather than in person.
One of the key features of Virtual Fitting is that it uses a “digital twin” to create a virtual model of the patient’s face. This allows the patient to see how different frames will look on their face without actually trying them on.
How to use Video Commerce to Boost E-Commerce Sales
Here’s a step-by-step guide on how to leverage video commerce to increase your e-commerce sales:
1. Understand Your Audience
Before you create any video content, understand your target audience. What are their preferences, pain points, and interests? Tailor your videos to resonate with your specific customer demographics.
2. Choose the Right Video Types
Different types of videos can serve various purposes in e-commerce. Consider using:
- Explainer Videos: Explain complex products or services in a simplified manner.
- Product Videos: Create high-quality product demonstrations, showing how the product works, its features, and benefits.
- How-To Videos: Showcase different ways to use your products.
- Customer Testimonials and Reviews: Share real-life experiences and feedback from satisfied customers.
- Live Streams: Here are some examples of using live streaming: Engage with your audience in real-time through activities such as live product launches, Q&A sessions, or behind-the-scenes content.
3. Optimize for Mobile
Ensure your videos are mobile-friendly, as a significant portion of e-commerce traffic comes from mobile devices. Use responsive video players and consider vertical video formats for better mobile viewing.
4. Improve Website Load Times
Slow-loading videos can deter potential customers. Optimize your website’s performance to ensure quick video loading times.
5. Video SEO
Implement video SEO best practices. Use descriptive titles, tags, and descriptions that include relevant keywords to improve your videos’ discoverability in search engines.
6. Embed Videos on Product Pages
Place videos on your product pages strategically, near product descriptions and images. This helps customers easily access additional information about the product.
7. Create High-Quality Content
Invest in professional video production if possible. High-quality videos instill trust in your brand and products. Ensure good lighting, clear audio, and compelling visuals.
8. Tell a Story
Use storytelling techniques to make your videos more engaging. Share the brand’s story, highlight the product’s origin, or convey the benefits in a narrative format.
9. Encourage User-Generated Content
Encourage customers to create their own video reviews and testimonials. Feature these on your website and social media channels to build authenticity and trust.
10. Use Video Across Marketing Channels
Promote your videos across various marketing channels, including social media, email marketing, and paid advertising. Share snippets and teasers to pique interest.
11. Run A/B Tests
Experiment with different video content, lengths, and placement on your website to see what resonates best with your audience. A/B testing can help refine your video strategy.
12. Track What Matters
Use analytics tools to track video performance. Monitor metrics like view count, engagement rate, conversion rate, and bounce rate to assess the impact of your videos on sales.
13. Personalize Customer Experience
Utilize customer data to personalize video recommendations and content for individual shoppers. Personalization can increase conversion rates by offering relevant products.
14. Commit to Continuous Improvement
To maintain your competitive edge and better serve your customers, stay updated with video marketing trends and technologies, and offer them to your buyers. Continuously refine your video commerce strategy based on performance data and customer feedback. This is especially important since 66% of global consumers desire innovative digital strategies from retailers.
Video commerce is here to stay and it’s best to adopt this technology sooner to improve customer experience and boost ecommerce sales.
Have a different opinion or more ideas how video commerce can be used in ecommerce? Let us know your thoughts in the comments below. 👇
