To keep online shoppers engaged and incent them to make a purchase, retailers are encouraged to provide additional value to the browsing experience. With online videos, eTailers can offer a more detailed look at products, and provide more insight into their value.
Canadian online marketplace SHOP.CA set itself apart from its competitors by using online videos designed to advertise individual items in its extensive product line. The eTailer increased conversion rates by 15% after implementing the services of automated video solutions provider Treepodia in March 2013, and has been able to achieve an ROI seven times larger than the original cost of the solution.
“SHOP.CA is now able to create videos quickly in a cost-effective manner,” said Melody King, CMO of Treepodia. “We’re able to make many changes as the catalog fluctuates, especially when items get discontinued or new items get added. Since SHOP.CA is a multi-merchant marketplace, you have plenty retailers that are joining them for the first time.”
“We wanted a company that could quickly scale video production so we could meet the demand of our customers among the millions of products we have,” said Christian Rodericks, VP of Marketplace Operations at SHOP.CA. The Treepodia solution also includes monitored video hosting, high-quality streaming and a multi-environment video player.
Breaking Out In E-Commerce
Beyond Amazon, no Canadian company has an e-Commerce market share higher than 5%, according to Rodericks. With its new video production capabilities, the SHOP.CA team aims to break out and become a dominant domestic competitor.
“In Canada, some of our biggest retailers aren’t even online yet,” said Rodericks in an interview with Retail TouchPoints. “It’s the equivalent to e-Commerce in the U.S. in 1999. With that, if we’re spending a lot of money and we’re shopping online a lot, then where are we shopping? We’re shopping across the border on Amazon.com and all the other American retailers. Once those products come across the border, you have delays, extra duty and shipping. We try to eliminate all that, and at anything you buy at SHOP.CA, the price you see is the price you pay.” SHOP.CA also offers free shipping and returns, as well as a rewards program for customers who share their purchases on social media.
Treepodia is expected to help SHOP.CA break out in the Canadian e-Commerce scene, as the platform provides a Dynamic Video Sitemap solution, which is designed to help improve Video Search Engine Optimization (VSEO). With Dynamic Video Sitemap, the retailer can ensure major search engines are fully indexing all elements of video content, including video title, description, duration and location, among other factors. This is especially valuable for Google rankings, as the search engine has made changes to its algorithm to favor videos while determining page rankings.
“The easiest, most expensive way to implement SEO is to pay Google a bunch of money to buy Adwords and get customers to search and click links,” Rodericks explained. “We don’t want to do that. We look at other marketing channels, all with varying costs per acquisition. The cheapest channel is SEO, which happens to be free. The greater the percentage of SEO that converts, the lower our total cost per acquisition and the better it is for our business.”