Treepodia – The leading Product Video solution for e-commerce

Online purchases up 2.2% in Q2

Even in this down economy ecommerce as a whole has continued to rise over the past year. Online retail behemoth Amazon reported revenue of $15 billion, up from $12.5 billion for the same period a year ago according to the Knowledge@Wharton article “Fit for the Holidays: Amazon is Shaping Up and Shipping Out.”:

“Even though the U.S. Census Bureau notes ecommerce accounts for only 3.6% of total retail sales in the country — up from 1% in 2001 — online purchases grew 2.2% in the second quarter of this year, while total retail sales fell 0.4%.

“What’s startling is not the magnitude of ecommerce sales relative to overall retail sales, but the growth rate,” says Marshall Fisher, professor of operations and information management at Wharton.”

Frankly I’m amazed online purchases still only account for just 3.6% of all retail sales. On the other hand that’s great news because as an industry it means we have a lot of growing to do…

Ecommerce sites expected to reach $45 Billion online this holiday season

According to Forrester Research, this holiday season American online retail sales are expected to reach $45 billion – an 8% increase from last year.

“Much of the growth can be attributed to improvements in the online shopping experience in recent years. In fact, ecommerce has come of age to such an extent that the lines between online and offline shopping are blurring.”

Why product videos are helping increase online revenues

Product videos are considered an important contributor to this growth and to the blurring of the distinction between online and offline shopping. Retailers are using video to enhance online shopping experiences by adding new engagement dimensions that help shoppers get a more tangible feeling for the products their looking for, which increases their sense of security and comfort about the item, moving them to make purchases more often.

By virtue of being mixed media videos simulataneously address the needs of different types of consumers:

• Voice-over narration attracts auditory learners, who absorb information best when hearing it.
• Visual cues such as bullet point slides work well with visual learners, who absorb information best when seeing and reading it.

Over the past two years we’ve seen all our clients, regardless of industry, consistently increase their ecommerce conversion rates significantly by adding video presentations to their product pages.

How to get the most out of your ecommerce videos this holiday season:

What follows are a few ideas we thought about over here at Treepodia that’ll help you increase your conversion rates and drive more sales this holiday season. Please feel free to add you own ideas, tips and pointers in the comment section of the article.

1. Focus – Use video to promote your holiday season’s top sellers

Limiting your focus to the seasons biggest sellers will ensure you make the most out of your video investment in the time frame available. You can add videos for other products when the holiday hubbub is over.

2. Fun – Dress your videos up for the holidays

You can create a more engaging, fun and seasonal shopping experience for your customers by giving your videos that special holiday flair:

• Adding the sound of jingling bells
• Showing a wreath-like trim around the edges
• Having a little elf present your product’s benefits.

3. Promote your promotion

Make sure you use all video’s interaction dimensions to convey your message. State your item’s promotion in the video’s narration and sign off with a slide about it at the end.

4. Happy Holidays Everyone!

Everybody likes receiving seasonal greetings. Take the opportunity, like me, to thank your visitors and add a personal holiday greeting message to your video : )

I recently read an excellent article titled “Lights, Camera, Action” by Newzgeek‘s David Shamah. Published on Israel’s leading English languge publication, the Jerusalem Post, the article’s basic premise was that:

Thanks to the Internet, everybody and his cousin can now star in his own production, using techniques straight out of the Hollywood playbook

Slide, Animoto and Masher – online slideshow tools

David then goes on to introduce a number of the online tools available for people who want to transform their photos into smart-looking videos accompanied by music or narration. David mentions Slide and Animoto, which I was familiar with, and Masher, which I’d never heard of before and found to be still slightly buggy.

What if I don’t like online services?

I think that although David’s suggestions are excellent, some people might find working exclusively with an online service slightly frustrating, especially if/when connectivity and speed are an issue. Personally, if your interested in making your own video slideshows, I’d recommend looking at Picasa, Google’s cool photo editing tool which is backed by a photo sharing service of the same name.

Picasa as a video slideshow tool

Picasa has a built in video tool that has excellent support for stitching photos together into a slideshow, and uploading it onto Youtube. This slideshow I created last month for Semantic Web startup Semantinet was done exclusively with Picasa. Check it out to get an impression of what you can expect:

So what are the pros and cons of using Picasa?

The pros are:

• It’s quick and easy to learn and use
• Ample support is available online via Picasa help forums
• You can connect your Picasa and Youtube uploads to your Gmail account (if you haven’t got a Gmail account yet, now’s the time to get one…)
• It’s completely FREE!

The cons are

• Picasa’s simplicity also means you’re offered rather limited customizing options
• Unlike with Animoto and Slide, you have to supply your own music (a great resource for this is FreeMusicArchive.org).

How scalable are these solutions for ecommerce?

If you’re a smal scale operation with only a few products in your store, and you’re only interested in testing what effect slideshow videos can have on your conversions rates, Picasa is a great tool to use and I’d definitely recommend it. For all other purposes however, Picasa still requires far too much human labor to make it effective. Serious vendors are probably best served by automated video solutions like our own, even for the pilot phase.

Recently I read an interesting post by Hi Jennifer Meacham on PracticalEcommerce.com titled “Innovative Video Use Increases Conversions for Merchants.” The post’s main theme is that using spokespeople videos on your site can be very effective.

Don’t mind me,
I’m just walking back and forth on your screen…

Although many of us find these types of solutions highly annoying (especially when they’re set as autoplay), online spokespeople are actually an interesting solution to the whole ecommerce-video paradigm. Their effectiveness builds on our brain’s predilection to trust human figures, and especially faces that talk to us.

Problems of Scale

There is a catch however: to maximize effectiveness you need to invest in creating a unique video of your model walking and talking while demoing EVERY item in your catalog. This is fine if you have a store that only sells a few items, but becomes highly impractical for any store that sells tens, hundreds, or thousands of items. The solution isn’t “scalable”.

Another scale related issue is the ratio between your model’s size and your product’s size. If your selling handheld items which are significantly smaller than a human being, your product would show up near invisible in comparison to your model’s body. Definitely a case in favor of having a talking head instead of a full body.

What to do? What to do?

I recently heard a pod cast by Jennifer’s PracticalEcommerce.com associate Kerry Murdock, who conducted with Faculte.com’s CEO Maher Hakim.

Maher advocates approaches that I tend to believe are more effective than the spokesperson model:

“Don’t spend a lot of money on producing the video… you can create really nice video by stitching together some photos & then putting in some music and audio and narration on top of that. It looks and feels like a video to the end user”

This is precisely what our ecommerce video solution does in an entirely automated fashion: In a nutshell we create product videos directly from an etailer’s XML, with little or no human involvement at all (narration still requires it). The automation of the process enables us to cover/handle an ecommerce’s entire catalog with video within 24 hours. Our low production costs also mean we can offer our solution on a Pay-Per-View basis that guarantees vendors see ROI for their videos.

Furthermore, we don’t simply create a single video for each product, but a few, for which we then run automated A/B testing for to measure optimal conversions – perpetually dropping the less effective versions.

We’ve learned with our own clients, that boosting product listings with video this way increases conversion rates by anything from 35% (for eyebuydirect.com) to over 300% (for certain product pages within Forzieri.com‘s site).