You know what a video is and how to utilize it in digital marketing. But how does it help in selling products online?
If you haven’t read it already, here is a quick guide to get you started in Video Marketing.
We have seen some great marketers utilizing their video marketing skills to make significant revenue on the e-commerce model. The idea is fairly simple. You take a product, make a video about it, and put it online.
Whoever is interested in that product watches that video. And more often than not, makes the transaction.
This article will discuss the principle and the best way to monetize this idea to a revenue stream. Let’s dive in.
What Is E-Commerce?
Any transaction that occurs electronically is e-commerce.
It was the original definition, but it has changed a lot since it was termed.
When you purchase something from someone and get it delivered to you without physically visiting the store, it is called an e-commerce transaction.
You can pay through your bank account (credit or debit card) or COD (Cash on Delivery).
E-commerce (a transaction) often involves two or more parties, one is the seller, and the other is the buyer. This transaction also consists of an intermediary who processes this transaction. This intermediary, or the provider of e-commerce, enjoys the commission made through that sale.
There are various types of e-commerce models based on the above principle. Most commonly used are B2B (Business to Business) and B2C (Business to Customer).
In the B2B model, the parties involved trade goods and services with each other as businesses.
They handle trade for large-scale (products in bulk) transactions.
One great example of this is Alibaba. Many retailers buy their niche products from it and sell them to their local customers with some profit.
On the other hand, in the B2C model, the business sells directly to customers (locally or globally). The best example of this is Amazon.
They put their products online and advertise them on various platforms. And customers make payments directly on their website or application and get that item (product) delivered straight to them.
Many social media influencers enjoy the B2C model by using the “Piggyback” technique to earn a decent amount of money. This technique involves Affiliate marketing, social engagements, and lead magnets.
But how does Video Marketing play a role in it?
In digital marketing, people buy what they see. And what is the best way to see anything?
It is a video.
Let’s Understand This With An Example
You are suffering from a particular problem, let’s say dehydration, while working out.
And you make a quick google search for a solution. You then come across three products that might solve the problem.
One product includes a long list of features (text) and specifications. Interesting. Since you do not have time to read it all, you might bookmark it.
The second product includes nothing but a title, a vague description, and a price tag. There are some reviews, but is that enough to convince you to spend money on it?
And comes the third product, which includes a video in the description. The video is 2 minutes long and has a very compelling thumbnail and title on top of it.
You watched the video, which is engaging by the way, and decided to purchase it.
Can you relate to this scenario even remotely?
Everyone can. We experience it almost every day. And while the person who invested a bit on that video earned revenue from you and countless others.
How Are Successful Marketers Utilizing Video Marketing In E-Commerce?
Amazon provides out-of-the-box video solutions to its paid sellers. In 2015 it might have worked, but in 2021 everyone expects your video to be unique and fulfilling.
The plain white background, monotonous narration, and slides are just not going to cut it.
On the other hand, the possibilities are endless if you correctly utilize video marketing with your e-commerce strategy.
The new thumb rule of selling online is to keep your potential customers engaged. Other than product videos, you can use various styles of videos in your arsenal to build trust, credibility, and a following. Videos like testimonials of your existing customers, corporate videos, creative teasers, and sales videos work wonders.
Let’s look at some of the benefits of employing video marketing in e-commerce:
Higher Conversion Rates
As a customer, we buy a result rather than the product or service.
No one is interested in your product. People want the result that the product can bring them.
Furthermore, videos provide a sense of credibility, which is necessary for the sale.
According to a report from RenderForest, more than 70% of businesses enjoyed a better conversion rate in 2020 through video marketing. From what we can tell, the rest of the 30% might have gone through what we’d like to call CICO syndrome.
It means Cheap in, Cheap out.
Although it is a made-up phrase, it is still imperative not to hire a cheap and unprofessional team of people to create those videos for you.
Business is a system— a machine. And if you input cheap entities into it, you will more than likely get a low-quality outcome out of it.
And no one would like a cheap and low-quality representation of your product or service. People would scroll away from your video, no matter how good the quality of the product actually is. In the consumer market, people buy what they see.
Hire professional people who are compassionate with your idea and good with their skills.
Videos Compliments Marketing Strategies
Videos convert more leads than blog posts.
If done correctly, videos can complement any marketing strategy.
For instance, if you run a recipes website, creating videos about those recipes can gain engagement on your content by up to 76%.
Even for someone selling donuts in a street, proper video marketing can introduce his tasty delicacies to a wider audience, turning in a big bag of profits.
Videos Reach More Potential Customers
There is a reason you never see text-based commercials between breaks of your favorite TV shows.
It is absurd to even think about it.
However, the text holds its regard in the commercial market; you cannot expect someone scrolling through entertainment to stop and read a textual ad.
Text-based advertising works great for someone who reads books and magazines. They might read the ad since they were already engaged in reading.
Since most of the consumer market is binge-watching through their news feed already, it makes sense to explain your product or service through a video.
As a seller, it becomes easier to be seen. And if the video is interesting enough, people would readily watch it.
Lazy People Need To Buy Too
Not only are videos a great learning tool, but they are also effortless to consume.
Today, people want to see the product in action. And with most people living a fast-paced lifestyle, reading through a description or text can become a hassle.
Video marketing captures a large audience base. While videos can easily reach people from different social-economic backgrounds, we can employ the right tools and strategies to categorize our target audience. That includes the lazier ones.
Improves Brand Recognition
It means that social media videos are a part of a trend that will not end anytime soon.
People respond to videos content.
Videos engage people better than any other format of the information, and we can utilize these videos to connect brands with their customers.
“People want to see what they might like, and if they like what they see, they will be inclined to buy it.” – Rees Gargi.
Combined with proper marketing strategies, videos can spread the word for you like wildfire.
Where And How To Start
First of all, you need to plan the product strategy and target audience. Once you have that, involve a video production house to create those engaging videos for you. Meanwhile, you can layout and extend your business reach.
Once you have your landing page or e-commerce website, start advertising on various platforms and social media. Use videos as the key to unlocking the great potential for your business model.
Once the sale goes on and order comes in, it is time to keep your audience engaged.
Eat that fruit of hard work and share the seeds with your family and friends [this article]. We are always eager to help the newbies, so let us know in the comments below if you have a doubt or need a push in the right direction.
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