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Video e-commerce is now an essential piece of every brand’s e-commerce marketing strategy—and it’s growing more important every day. Video, particularly live video e-commerce, increases purchasing intent and conversions, builds trust, drives traffic to your site, and boosts sales. If your brand is still sleeping on its e-commerce video production strategy, it’s time to wake up and dive in. 

Let’s get into the nitty-gritty details and find out precisely what video e-commerce is and how to use it to lift sales, grow your brand, and engage customers in remarkable ways. You can read down the entire blog or jump to a particular section with our table of contents.

What Is Video Commerce?

Video e-commerce is the integration of video into the online shopping experience, often with different types of content. From shoppable videos and testimonials to live streams and personalized try-on experiences, video commerce is a flexible, engaging, and incredibly powerful sales tool for brands big and small.

According to recent research from Sandvine’s 2023 Global Internet Phenomena Report, video usage now represents a staggering 65% of all internet traffic and shows no signs of slowing down.

This tremendous boost in video content was no coincidence. After COVID forced the whole world to stay home in 2020, there was an unprecedented 24% jump in video usage. With far fewer physical encounters, people were searching for authentic, valuable interactions on their phones. Enter video e-commerce, the perfect way for customers to connect with brands and products outside the brick-and-mortar store. As of this year, 91% of businesses use video as a marketing tool, marking an all-time high since tracking began in 2016. E-commerce video production is no longer the cherry on top. It’s the whole sundae.

In this era where video is king, shoppers actively seek out video content, making it a powerful tool for brands to connect with and convert customers.  Today’s shoppers are engaging with video content more than ever, and brands that capitalize on this exciting moment are poised to grab a bigger slice of the market, build trust, and drive sales like never before.

What Are the Benefits of Video E-commerce Creation?

Where do you spend most of your leisure time online? TikTok? Instagram? YouTube? Chances are, you’re watching more videos than you realize, an average of 84 minutes per day, to be exact. The reason is apparent—videos are more engaging and eye-catching than text alone.  As Dr. James McQuivey of Forrester Research said in his often-cited study How Video Will Take Over the World, “One-minute video is worth 1.8 million words.” 

Here’s where it gets good. All this scrolling and watching isn’t just a trend. It’s translating into big benefits for savvy e-commerce marketers.

Higher conversions and sales

Get ready for some eye-opening statistics! According to Wyzowl’s comprehensive report, The State of Video Marketing 2023, a staggering 89% of people have admitted that watching a brand’s video played a pivotal role in convincing them to purchase a product or service. This data alone underscores the immense impact that video content can have on consumer decision-making.

How are e-commerce videos so impactful? Well, one of their key strengths is rapidly conveying vast amounts of information. Unlike lengthy blocks of text, videos (when executed properly) not only serve an educational purpose but also bring an element of enjoyment and entertainment to the shopping experience. Studies have revealed that incorporating excellent e-commerce videos into websites and product descriptions create an 82% increase in purchasing intent and an astonishing 130% boost in conversion rates. Well-crafted videos can significantly influence customer behavior and drive customers toward making confident purchases.

The numbers don’t lie. Engaging e-commerce videos reshape how customers interact with brands and make purchasing decisions. Businesses that embrace this dynamic shift are poised to reap the rewards in the competitive world of e-commerce.

Increased site traffic

Research shows that Google loves videos. Sites with at least one well-produced video rank up to 53 times higher than those without. Another critical advantage of video e-commerce is its ability to foster more links and more social media shares. As people share videos they find interesting or valuable, it generates more visibility for the brand, leading to increased inbound links and, in turn, boosting search engine optimization even more.

Happy customers

Video integration into e-commerce platforms is crucial in helping customers make informed purchasing decisions. By visually showcasing the benefits, functionality, and real-world usage of products, videos give consumers a realistic sense of what they can expect from their potential purchase. This added transparency and insight into the product contributes to higher customer satisfaction and reduced buyer’s remorse. Plus, only videos have the unique power to connect with audiences on an emotional level through storytelling and personal interactions. 

Long-term relationships

On a similar note, video e-commerce opens up new business possibilities to engage customers and create personalized shopping experiences. By harnessing the storytelling capabilities of videos and presenting products in a visually appealing manner, brands can leave a lasting impact on their audience. These engaging experiences encourage repeat business, leading to word-of-mouth recommendations and further expanding the customer base. Investing in a powerful video e-commerce strategy is a way to boost conversions and create memorable shopping experiences that leave a lasting impact, ultimately forging long-term relationships with customers and encouraging repeat sales.

How Does Video e-commerce Work?

Now you know some of the biggest benefits of a strong video e-commerce strategy. But how and why does video e-commerce work so well for so many diverse brands and products? Remember the heyday of QVC? An elegant woman delicately touching a silk neck scarf and talking about where and how she wears it. Watching real people touch and talk about products is both an emotional and educational experience. In China, where e-commerce video production and live streams have exploded, the growth in revenue is astounding.  

By the end of this year, Insider Intelligence reports that 45% of China’s digital shoppers will be buying products via livestream. To provide some context on this explosive growth, in 2018, China’s live-streaming e-commerce had a market value of $17.6 billion. By 2020, it had jumped to $512.3 billion, and by the end of this year, it is poised to reach upwards of $722.5 billion! In the U.S., where live shopping is still a relatively new concept, the same opportunity is just heating up.

With the ability to demonstrate product features, provide virtual tours, and share customer testimonials, video content creates an immersive shopping experience beyond static images and written descriptions. What’s fascinating is that people don’t just watch videos at home. Google reports that 55% of customers also use online videos while shopping in physical stores. They pull out their phones, search for quick product information, and make decisions based on what they see. 

8 Types of e-commerce Videos to Start Using Now

The advantages of e-commerce videos are seemingly endless. But where do you begin? And which type of e-commerce videos are suitable for your website and social media channels? Whether you’re creating the content from scratch or working with Firework to automate video production through AI, here are 8 of the most effective and essential forms of video e-commerce to start exploring right now.

How-to videos

Perfect for social media, landing pages, and more, how-to videos offer your brand an effective way to guide customers through using your products or services. With step-by-step demonstrations and troubleshooting advice, these videos enhance customer understanding and boost confidence in making purchase decisions.

Close-up videos

Close-up videos provide a detailed view of your products, showcasing their design, texture, and quality. By allowing customers to examine items closely, these videos instill a greater sense of trust and transparency, encouraging more informed buying choices. Another excellent addition to your product description pages. 

Testimonial videos

Testimonial videos feature real customers sharing their positive experiences with your brand’s products or services. As authentic social proof, these videos build trust and credibility, serving as persuasive tools to influence potential customers to purchase.

Thought Leadership/CEO Message Videos

If you have the information, why not share it? Thought leadership videos showcase your brand’s expertise and industry insights, positioning your business as a trusted authority. These videos feature industry experts (such as your CEO) and attract customers seeking knowledgeable and innovative solutions on social media, websites, and more.

Explainer videos

Explainer videos use visuals and concise explanations to demystify complex product information. By simplifying features, benefits, and use cases, these videos help customers better understand your offerings, increasing the likelihood of making well-informed decisions.

Shoppable videos

Shoppable videos seamlessly merge entertainment with retail, allowing customers to purchase products directly while watching the video. By incorporating clickable product links or interactive elements, these videos create an engaging shopping experience, driving purchases and boosting conversions. These may seem like a complex addition to your mix, but the results are worth the effort. Learn more about automating shoppable video content here.

Live-streaming videos

Live video streaming connects your brand with its audience in real time by utilizing creators to share new products, host Q&A sessions, or offer exclusive deals to create urgency and foster community. China’s success in utilizing live video streaming platforms has demonstrated the vast potential of this marketing strategy. As the world becomes increasingly interconnected and digital-savvy, businesses across the globe are recognizing the immense opportunities that live video streaming offers.

By incorporating some or all of these diverse video e-commerce formats, your brand can effectively engage, inform, and convert your audience. But as you build a video e-commerce strategy, it’s essential to remember that not all video is not created equal. A poorly produced product reflects poorly on the brand itself. Viewers might associate the lack of effort put into the video with the lack of care the brand puts into its products or services. This negative association could lead potential customers to seek alternatives from more reputable and professional-looking competitors.

Quality is key. Working with a professional to create videos that engage audiences and capture your brand’s goals will elevate your online presence and significantly boost your chances of success.

Looking to the Future: AI and Video Commerce Creation

As AI technology changes the e-commerce game, brands that invest early are poised to lead the industry. AI-driven chatbots and virtual assistants are already being utilized for instant customer service, innovative product recommendations, and complex customer data analysis. The integration of AI and video e-commerce is set to reshape the future of online shopping, making it more personalized, efficient, and enjoyable while empowering businesses with valuable insights.

And what about e-commerce video creation? You no longer need to be a video producer to create quality e-commerce content. Firework has launched the first-ever generative product for video e-commerce. Firework’s creation studio is a game-changer for brands seeking to enhance their video e-commerce presence. This powerful tool allows you to create custom video commerce content on a large scale, using AI-enabled tools that make the process fast and intuitive. With Firework’s creation studio, brands can quickly build impactful and captivating videos, helping them reach their audience more engagingly and effectively.

Unlocking the Potential of Video e-commerce

Video content has become a transformative force in the world of e-commerce, revolutionizing how businesses interact with their customers. By combining the dynamic power of videos with the convenience of shopping, brands have tapped into a winning formula to engage today’s shoppers right where they are – online, visually captivated, and eager to make informed purchasing decisions.

Firework has the tools you need to create powerful e-commerce videos that educate, entertain, and drive customers to checkout. Now is the time to seize the opportunity and unlock the amazing potential of video shopping. Book a demo today.

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