Our pals at eMarketer (well not sure we're exactly pals) have done some new research pertaining to how retailers see the value of online video panning out. From all indications, it seems to be quite good.

According to the report, Video E-Commerce: Innovative Models Drive Sales, retailers know what consumers want and that is online video. This helps them stand out among their major competitors and gain valuable clients and ROI.

"Consumers rank other purchase decision-making tools, such as customer reviews, ahead of videos in importance," said Jeffrey Grau, eMarketer senior analyst and author of the new report." "But that has not discouraged retailers from quickly adding videos to their sites. They find that videos boost sales conversion rates and reduce abandoned shopping cart and product return rates.”

Top 50 retailers that are offering some form of video on their websites skyrocketed 378% last year over 2008 and was up to 68% says a Forrester Research study, "Online Retailers' Adoption of Online Video Content Is Ahead of Consumers' Preferences," published in November 2009.

E Commerce Retailers Find Value In Online Video 114072 300x269 It's a pretty big boost really if you think about it. That number should pale in comparison to what it will be this year. 42% who are planning to redesign their site this year are also going to add video to the mix. That's second on the list just behind implementing social media tools and strategy.

"Retailers are making the case that videos boost their sales conversion rate, a measure of the increase in the percentage of shoppers who make a purchase after viewing a product video," said Mr. Grau. "Retailers also claim videos reduce shopping cart abandonment rates and lower product return rates.”

Of course this research runs parallel to a lot of what we have been seeing lately. With the economy poised to turn around and start climbing everyone is making ready to reap the benefits. That generally means bolstering online presences and expanding offerings. I think they had all best be working on it already as the economy is already digging its heels in.
It is good to get more affirmation that what we're doing, online video in all its myriad forms and functions, is worth the effort and that other industries are beginning to see the true value of our work.

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  • http://www.linkosolutions.com/ecommerce/ ecommerce

    I like your efforts Christophor Rick ."E-commerce" also known as electronic commerce is defined as the absolute set of procedures that carry commercial or business activities over a network and further aid in performing commercial transactions electronically.

  • http://www.directorysubmissionservices.net Nick

    Very nice video. I think SEO is very useful in every field. As Google hire an SEO is a big decision that can potentially improve your site and save time.It will very beneficial as SEO improves the page ranking of your web site as well as improve the web site web pages.this will be very benefical for the ecommerce.....Thanks for sharing..

  • http://www.sundaysky.com Yaniv Axen (SundaySky’s CTO)

    We are encouraged by eMarketer’s research as well, Christopher. E-commerce sites are already seeing the benefits of online video – increased conversion, reduced shopping cart abandonment, and more. As an industry, we are all learning just how valuable online video truly is, including SEO and brand visibility. However, ecommerce sites are presented with challenges in keeping their product pages up to date and scalable, requiring solutions that keep video content current and dynamic. It should be an interesting year for commerce video!

  • http://www.reelseo.com/author/grantastic/ Grant Crowell

    Chris, I would be interested to know if the report has any studies on how videos of customer tesitmonials compare in driving conversions. Since the quote featured talks about how customer reviews rank ahead of videos in terms of making purchase decisions, why not combine the two? I think that would involve working with a UGC video solution, which could be anywhere on the low end of submissions through embedded video links (ala YouTube), or implementing a UGC Video model (ala Brightcove or Sorenson Media, just to name a couple of providers).

    • Christophor Rick

      Someone has a system that can track purchasing behavior all the way to retail sales offline Grant but I can't remember who it is at present. (does quick research)

      I believe it's Brightroll, yep found it - http://www.reelseo.com/brightroll-launches-video-impact/

      I'm sure there are plenty of others as well.

      • http://www.reelseo.com/author/grantastic/ Grant Crowell

        Thanks, Chris. I think you have several more articles on ReelSEO about them as well.

        I'm going to be covering the Internet Retailer conference in Chicago Jun 8-11. I will be on the lookout there for any e-commerce video solutions providers offering their own means of tracking purchasing behavior, too.