The measurable benefits of product video in e-commerce

The power of product videos go beyond mere promotion or product information. From enhancing customer engagement to boosting conversions and average order value, product videos have the potential to transform your online store and have a great impact on the bottom line.

Let's explore the many measurable benefits of product videos in e-commerce to discover how they can improve your online store's performance and maximize returns on your marketing and store investments.

🔗 Read more: The ultimate guide to product videos in e-commerce

1. Product videos unlock the power of engagement

Product videos fuel long-term success. Captivating your audience with interesting and informative product pages pays off – and today's customers expect video content: 80 % of people say they typically switch between online search and video when researching products to buy.

Videos have a compelling effect, extending visit durations and enticing visitors to explore more offerings, ultimately converting them into loyal returning customers.

Reduce bounce rate and exit rate

Drive down bounce and exit rates with product videos. By captivating visitors with dynamic, informative, and engaging content, videos effectively retain customer interest.

📊 Videoly Data: A/B tests conducted with our customers show that product pages with video can reduce the bounce rate by an average of 5.0%.

Some of our customers have experienced a reduction in the bounce rate as high as 12.14% and a reduction in the exit rate of 33.5%.

Increase time spent on site

It’s not rocket science: when users are spending more time engaging with your content and learning about your products, they spend more time on your site. But video viewers also tend to visit more pages per session and be exposed to more products.

📊 Videoly Data:  Our data reveals videos are watched for an average of 64 seconds. Depending on your store's traffic and video count, this translates into thousands of additional hours spent on-site monthly for some Videoly-powered stores.

The payoff: Understanding the business impact of increased engagement

1. Better marketing ROI. A decrease in bounce rate delivers more value from your marketing efforts. This is especially crucial for paid traffic, as you’re essentially paying for each visit. Why not ensure your existing efforts to drive traffic to your store convert in the best possible way? As visitors stay engaged on your site, they're more likely to convert, boosting your marketing ROI.

‍2. Enhanced search engine rankings. Search engines like Google take user engagement into account when determining search rankings. Additionally, many search engines prioritize websites with rich multimedia content, including videos. Thus, it’s really a win-win to add video content. A lower bounce rate signals that your product pages are valuable to users, which can lead to improved search engine rankings and increased organic traffic.

3. Improved shopper experience. Engaging, relevant and timely product information creates a positive experience and increases customer satisfaction. Well-informed customers also are able to make buying decisions better, which means a greater likelihood of them purchasing the product and a lesser chance of them returning it later.

🔗 Read more: 6 foolproof ways your online store can build total trust

2. Cashing in on video: the impact on revenue

Videos drive revenue growth and contribute to customer satisfaction by empowering informed decisions, paving the way for a win-win relationship between your business and your happy customers.

Increase your e-commerce conversion rate (CR)

Don't miss out on boosting your e-commerce conversion rate (CR). Engaging and informative video content builds customer trust, showcasing your products in action and reducing purchase hesitations.

📊 Videoly Data: Based on on A/B tests conducted with our customers, video has shown to significantly boost conversion rates (CR). Our results indicate a median increase of +5.95%, an average increase of +7.96%, and a maximum increase of +18.72%.

Increase your Average Order Value (AOV)

Product videos enhance the overall shopping experience and present opportunities for additional purchases, all of which contribute to increasing the average order value of an e-commerce store.

📊 Videoly Data:  Every store is unique, making it difficult to establish a universal statistical power for this metric. We often use the example of an average customer who reported a 5.8% AOV increase during A/B tests done with Videoly as a benchmark when helping customers calculate the potential benefits of adding product videos to their store.

The payoff: Reap the rewards of increased CR and AOV

1. Increased revenue.The equation is simple: higher conversion rates and larger AOV directly contribute to an increase in overall revenue – not to mention what an increase in both can potentially do for your bottom line.

2. Greater customer lifetime value (CLV). With more conversions and a higher AOV, businesses can increase the overall value derived from each customer, leading to a higher CLV and stronger long-term relationships with customers.

3. Opportunities for upselling and cross-selling. A higher AOV may indicate that customers are more receptive to upselling and cross-selling efforts.

🔗 Read more: Calculate the potential ROI of product videos

3. Escape the burden of manual video management costs

While integrating product videos into your e-commerce strategy is essential, it's worthwhile to consider the cost. Manually sourcing and embedding videos onto product pages can be time-consuming and overwhelming.

Automation is the way to go if you are looking to maximize efficiency and get a visible impact on your bottom line.

Automatic video sourcing‍

Finding and watching individual product videos on YouTube takes a lot of time. You essentially have to vet them one by one, ensuring the video is positive and about the right product without mentions of price of competitors.

Doing this automatically through a tool like Videoly can significantly reduce time spent on picking and curating video content — and your team can use their time for tasks that cannot be automated. ‍

Automatic video embedding‍

Embedding videos to your online store, one by one, takes a lot of time. Not to mention the time spent on different language versions or checking the store for broken links.

The payoff: The liberating influence of automation

1. Saved time. You can simply streamline and simplify the task of curating and embedding each video, allowing you to focus on other important aspects of your business.

2. Saved money. With a tool like Videoly, you reduce all manual work related to adding product videos to your online store. By minimizing time spent on videos, you end up saving money. 

3. Increased consistency and scalability. Videoly finds and adds the videos for you automatically, but there is always a human involved in picking the best video content. This way you can ensure that the quality stays consistent throughout your website. A tool doing this for you allows for scalability since you can find and update videos for a large number of products without overwhelming manual effort.

🔗 Read more: Automation for e-commerce businesses: 11 helpful tools to consider

✨ Calculate the benefits for your store

Is your online store performing in the optimal way? If you haven't incorporated product videos into your strategy, you may be missing out on significant potential. 

Take our ROI calculator for a test drive to uncover the tangible benefits of product videos for your online store.

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