What Is Video Commerce? Benefits, Types, and Best Practices

As an e-commerce retailer, you’ve probably noticed a growing trend: shoppers drop off before completing their purchase. It’s not just hesitation; it’s about trust. 

Shoppers today don’t rely on boring photos and text descriptions to make a purchase. They want real-time answers, clear product visuals, and an experience as personal as in-store shopping. This is where video commerce comes in. 

Video commerce helps you bring your products to life, answer questions instantly, and tackle objections. Still on the fence? Keep reading to see how live commerce tools can turn hesitant browsers into confident buyers and abandoned carts into completed sales. 

E-commerce videos work because they make online shopping feel as personal and interactive as in-store visits. The video's visual appeal builds trust and reduces doubts by showing products in action. Unsurprisingly, over 60% of shoppers say online videos inspire purchases.

Video-enabled commerce is also popular because of today’s creator-driven economy, where shoppers turn to influencers and YouTubers for product recommendations. E-commerce brands are jumping on this trend to promote their products across social media platforms, online ads, e-commerce websites, and shopping apps.

Why is video commerce important for brands and retailers? 

Video e-commerce is a smart way to boost conversions, engage customers, build trust, gain insights, and reduce return rates.

Boost conversion rates

No more endless scrolling or searching multiple pages. E-commerce videos allow customers to directly click on products in the video to add them to their cart. This process reduces friction, making shopping easier and faster for customers. 

Shoppable videos also engage shoppers, holding their attention longer and increasing the chances they’ll complete their purchase. By showing products in action, videos give customers the clarity they need to make confident buying decisions. 87% of video marketers agree that video has helped them generate leads.

Increase customer engagement 

Video commerce lets shoppers explore products from every angle and understand their features. Through live streams, customers can get real-time answers to their questions, making the experience interactive and helping them connect to your brand. 

Brands can also create stories that evoke emotions and resonate with their audience. By creating a narrative shoppers can relate to, they can turn shopping into a more personal experience. This mix of interaction and storytelling engages customers and keeps them returning for more.

Build trust and credibility 

Video commerce improves transparency with real-time interaction. Shoppers can ask questions and watch honest, unscripted demos on the spot. This openness builds trust, as customers know they get accurate, unfiltered information.

Live video content often features user generated content (UGC) creators or influencers whose personal endorsements carry much weight. People trust recommendations more than ads, and seeing a product used or reviewed by a real person adds an extra layer of authenticity. This combination of real-time engagement and trust helps brands build credibility with their audience.

Reduce return rates

E-commerce videos also greatly reduce return rates. Unlike photos or wordy descriptions, videos show how products look and work. Customers get a better idea of what they’re buying, so there’s less chance of disappointment when the product arrives. 

How does video commerce work? 

Video commerce integrates video content into e-commerce platforms. It uses pre-recorded or live videos to show products in action. These videos give a full 360-degree view, showing features, how the product works, and how customers can use it. Brands can embed these videos on product pages, websites, and email campaigns. 

Shoppable videos allow customers to click on specific products in the video. These clickable elements appear as pop-ups, buttons, or overlays, enabling customers to visit the product page or directly add the item to their cart. This convenience makes shopping quick and hassle-free. 

Brands distribute e-commerce videos across multiple channels, including e-commerce websites, social media platforms, and shopping apps. Platforms like Instagram, TikTok, and YouTube support shoppable videos to help businesses reach more customers. 

AI also plays a significant role in video commerce by analyzing customer viewing behavior and suggesting products that match their interests. For example, users watching videos about gaming laptops may receive recommendations for accessories like laptops or headsets. These AI-powered recommendations personalize customers’ shopping journeys and boost the likelihood of conversions. 

Types of video commerce 

There are two types of video commerce for retailers:

Live video commerce

Live video commerce offers a real-time shopping experience. Through live video streams, customers can interact with the brand, ask questions, and receive instant replies. 

The live aspect adds a layer of urgency and excitement, making the shopping experience more thrilling and engaging for customers. Presenters can indirectly interact directly with viewers and change their approach based on real-time feedback. Live video sessions also boost brand loyalty by building a sense of community among shoppers. 

Non-live video commerce

On the other hand, non-live video commerce uses pre-recorded videos with direct product purchase links. These videos allow customers to explore product features and uses at their own pace. Customers can click on the clickable links to add products to their cart. 

Brands optimize these videos for search engines to boost visibility and reach a wider audience. Non-live video commerce offers a rich visual shopping experience while providing the convenience of on-demand viewing. These videos are versatile, meaning brands can use them across social media, shopping apps, product pages, and email campaigns. 

Below are some of the popular types of video marketing:

• Product demo videos showcase a product's features and functionality, helping potential customers understand its value and application.
• Animated videos use animation tools to explain complex concepts or products in a simple and engaging manner through visually appealing content.
• Livestream videos broadcast videos in real-time to help brands interact with audiences, answer questions instantly, and create a sense of urgency.
• Product tutorials are instructional videos that guide users on how to use a product.
• Expert interviews feature insights from industry experts to help a brand build credibility and position itself as a thought leader.
• Interactive videos create a personalized experience by letting viewers engage directly through clickable elements.
• Promotional videos highlight a product or service to generate interest and drive sales.
• FAQ videos answer common customer questions to improve customer satisfaction and reduce support inquiries.
• Unboxing videos showcase the experience of opening a new product. They build excitement and provide a tangible sense of the product's quality and presentation.
• Product launch videos create buzz by announcing new products, features, and availability.
• Explainer videos detail a product’s features and benefits. They use storytelling to connect with the audience and clarify the product's value proposition.

How can brands implement video commerce?

Adding video commerce to your e-commerce marketing strategy is a no-brainer. It increases sales, engages customers, and improves brand loyalty. Follow these steps to get started: 

Know where your audience is

Knowing where your audience is crucial when starting video commerce. If you don’t figure out their go-to platforms, you’ll create videos no one watches.

Start by understanding where your audience spends their time. That way, you can make sure your videos reach the right people. For example, younger generations are likelier to spend time on TikTok and Instagram, while businesses might be more into LinkedIn or YouTube. Meet your audience where they already are to engage with them and turn views into sales. 

Create engaging video content 

Today, your customers’ attention spans are short; generic content doesn’t cut it. Unless you create engaging videos, you won’t be able to grab shoppers’ attention, hook them, and drive sales. Here’s how you can do it:

• Create a story: Don’t just show off product features. Instead, create a story that connects with your audience's emotions or values. 
• Bring in hosts: Work with hosts, influencers, or use UGC to add authenticity and make your brand feel more personal. 
• Keep it interactive: To make your videos stand out, add interactive elements like shoppable links, clickable tags, real-time polls, and Q&As. 
• Find unique angles: Focus on how your product solves real problems, especially in ways your competitors haven’t shown yet.

Choose a video commerce platform

When choosing a video commerce platform, look for one that ticks all the right boxes. It should integrate with your e-commerce platform, and support shoppable links, live streaming, and feature analytics. A smooth, user-friendly interface is a must for customers to interact with your videos. The platform should also let you customize branding and offer access to customer data.

Optimize for mobile 

Did you know more than two in five people worldwide use their phones to shop online?

Most online shoppers browse and buy directly from their phones. If your videos aren’t mobile-friendly, you risk alienating a large portion of your audience. Plus, mobile-optimized videos load faster and are easier to interact with. Consider testing videos on different devices to ensure a consistent viewing experience for users. 

Promote your e-commerce videos 

Start by sharing your videos across multiple channels, including websites, social media platforms, and email newsletters. Consider creating eye-catching thumbnails and compelling titles to attract viewers. 

You can also collaborate with influencers and brand ambassadors to reach new audiences. Running paid ad campaigns is a great idea, too, if you want to target specific demographics.

Analyze your metrics

Analyzing performance metrics like engagement, conversion rates, and customer retention helps you understand what works and what doesn’t. You should track audience behavior to identify topics or types of videos that your customers like. Analyze and use this data to improve your e-commerce video strategy.

Video commerce best practices

The secrets to engaging customers and driving more sales are making high-quality videos, adding interactive features, using UGC content, and ensuring everything works smoothly on mobile.

• Produce high-quality videos. Keep your videos professional and to the point. Aim for under two minutes to hold attention and share essential product details.
• Feature real people. Showcase employees or happy customers using your products in authentic settings to build trust and connect with your audience.
• Optimize for mobile. Use mobile-friendly formats and ensure fast loading times to deliver the best experience to customers. 
• Use interactive elements. Add shoppable links to your videos so viewers can buy products directly.
• Focus on UGC content. Encourage your customers to create and share videos showcasing your products. This adds authenticity and acts as social proof to inspire potential buyers.

Now, let’s look at some key video commerce trends. 

Lights, Camera, Conversion!

Video commerce lets you connect with customers on a deeper level, show off your products in action, and create shopping experiences they won’t forget. The possibilities are endless, whether it’s quick reels, live streams, or shoppable videos. If you want to make video a part of your marketing plan next year, now is the right time to start. 

Want to see how video marketing drives ROI and shines on social media? Check out these video marketing statistics before kickstarting your video commerce strategy.