Video Shopping: Another Opportunity for Better Ecommerce
Written By: ShaneWebGuy on July 29, 2020
Just recently, Google rolled out Shoploop, an experimental new platform for video shopping. Shoploop was developed by Area 120. Google describes Area 120 as the “in-house incubator” for ideas and projects. According to the General Manager, Lax Poojary, Shoploop endeavors to improve the online shopping process so people won’t have to use three different platforms to decide whether they want to buy a product.
Three Steps in One
Typically, a person goes through three platforms in the buying journey. The first platform is usually social media. A person’s social network is the source of the products. The buyer then goes to YouTube to check out if there are any reviews or demonstrations.
The purpose of watching videos is to find out if the product worked for others. Social validation is important for ecommerce. Reviews of products, especially the organically produced ones, help brands and stores greatly. And finally, the buyer searches an ecommerce platform where he can place the order for the product.
Area 120’s Shoploop Web app attempts to combine all three steps in one place. Shoploop videos are interactive. The platform does away with the traditional format for online shopping.
Shoploop is also a great discovery platform for new products. People learn about the new products, and they can buy what they want immediately after watching a video. Shoploop videos are always shorter than 90 seconds. If you want entertainment while shopping, then Shoploop is a promising platform.
Shoploop does not sell any of the products directly. Rather, it invites creators, video content publishers, and ecommerce store owners to sign up for an account to publish videos on the platform. The beauty industry is Shoploop’s focus at the moment. They have categories for nails, hair, makeup, and skincare. These niches are more demanding when it comes to reviews and recommendations.
Video in the Ecommerce Industry
The use of video is not new in the ecommerce industry. There are tons of videos on YouTube that promote a wide array of products and services. Spas and chiropractic services have been releasing massage videos for a long time.
Makeup tutorials and reviews have been the rage for well over a decade. Content providers are still growing. Product reviews are becoming more and more interactive and fun to watch. Even the retail giant Amazon offers Amazon Live.
There is now a huge need for shopping to be more interactive and engaging. This need is reflected in the shift in ad formats across the Web, too.
YouTube (which is also a Google brand) is rolling out a shoppable ad format. The new ads are also called ‘direct response ads.’ A gallery of images will be available beneath the traditional ad.
These images will link directly to the ecommerce platform or website of the business running the campaign. Ecommerce has been growing steadily since the pandemic because people are less likely to leave their homes. And let’s not forget that Hulu has its transactional ad format.
Video and Customer Behavior
Has the availability of videos changed consumer behavior? There is evidence that tech has changed and will continue to change consumer behavior for years to come.
A case in point would be how consumers use videos on their phones as a virtual shopping list. It’s easy to save videos and review them later when you’re ready to buy them. It’s common to see people browsing their phones while they are at the supermarket, hardware store, or even at the pharmacy.
Customers get their information from various sources: cake tutorials, Buzzfeed videos, product reviews, store videos, etc. It’s a heterogeneous mix of videos, and the availability of relevant videos dictates how the consumers assemble the information.
Videos also give people the confidence they need to make buying choices. Doubts always punctuate the customer journey. However, when there is a genuine need or desire for something, customers seek validation.
Videos assure that customers need to go out and spend their hard-earned cash. In addition to assurance, there is also the need to demystify certain things. Consider a person buying a PC after many years. Video creators who are experts at assembling PCs can directly influence consumer behavior.
Videos can also be titanic tiebreakers. People watch videos to break that last thread of resistance to buying.
Again, this is observable in brick and mortar stores when people go shopping. Customers want to feel that they are on top of things, even if it’s just buying new makeup. Videos provide that final push that makes them finally buy the product.
Industry Observations
– 87% increase in conversions when the video is available.
– There is a reduction in returns when a customer can play a video first before checkout.
– Customers tend to trust ecommerce platforms more when videos are available. Videos increase the trustworthiness of an ecommerce platform regardless of the age of the store.
– Videos can help increase the order value of customers. Videos easily engage people more, leading to higher sales volume per transaction.
– Videos are chosen over pure text in many situations. While the text is important for pointing out technical specifications, you can bundle a fuller and more vibrant buying experience with video, more than just plain text plus images.
– Videos can increase the dwell time of customers. Store videos can organically improve your website’s SEO as dwell time is one of the major signals that search engines monitor for ranking page relevance.
– Ecommerce platforms don’t have to spend a lot of money on video production. Video production is ideal, but maybe too expensive for many smaller businesses. Using animations and videos from databases can help cut down costs. While not all of these materials are royalty-free, their costs are only a tiny fraction of what it would cost if a business created its videos.
Summary:
Videos are slowly overtaking text and image in the global online marketplace. Ecommerce platforms have to evolve and adapt to the demands if they want to push sales to new heights. Talk to me if you are thinking of upgrading your ecommerce platforms and improving your landing pages.
