How Video Shopping is going to change the way people shop!

Video Shopping
Santhosh Palavesh

Video shopping is when marketers use video content to market and sell their products and services. Video shopping or vCommerce offers many benefits to the average Indian retailer who may be struggling to make it on an eCommerce platform. The one big concern for Indian shoppers is not trusting online brands. They want to see the product before they purchase it. It is now possible to connect retailers with genuine customers who want the in-store experience without leaving their homes through video calls. Video selling also enables the Indian retailer to depend on his skills rather than worry about social media presence.

Pros & Cons of vCommerce

The COVID-19 pandemic has pushed online sales because of the government-enforced lockdowns throughout the world. e-retail sales accounted for 18 percent of all retail sales worldwide in 2020, and this number is expected to grow with the push of digitalization and better internet connectivity. India, too, witnessed a boom in online sales during the pandemic, but most retailers have failed to make a smooth transition to the eCommerce marketplace.

80% of eCommerce startups fail to make it past the first year due to several limitations and challenges of eCommerce platforms. Expensive websites, low conversion rates, monopolistic competition from eCommerce giants, and cyber frauds have plagued the Indian online retail industry for years.

Video shopping is when marketers use video content to market and sell their products and services. Video shopping or vCommerce offers many benefits to the average Indian retailer who may be struggling to make it on an eCommerce platform. The one big concern for Indian shoppers is not trusting online brands. They want to see the product before they purchase it.

It is now possible to connect retailers with genuine customers who want the in-store experience without leaving their homes through video calls. Video selling also enables the Indian retailer to depend on his skills rather than worry about social media presence. Through the popularity of YouTubeTikTok, and Instagram reels, we know that video content has a much larger reach and grabs the attention of a large demographic.

Pros of Video Shopping

For retailer:

  • No need for expensive websites or eCommerce stores
  • Video selling is a higher conversion rate (almost 30% more than eCommerce)
  • Empowers retailers to create brand loyalty
  • SaaS model will enable monthly subscriptions and flexible payment plans
  • No need for expensive hardware and complex technical knowledge
  • Retailers can bridge the gap between their physical stores and virtual presence
  • Sell through retail skills rather than social media skills

For Buyers:

  • Shop virtually but enjoy the in-store experience.
  • A chance to look at the product before an actual purchase
  • Discover a hyper-local market that promotes the Indian retail industry
  • Visit any store, anywhere!
  • Better security than WhatsApp shopping

Cons of video shopping

The first hurdle with any new technology is Awareness; similarly, vCommerce is yet to take off in India due to the lack of knowledge among retailers and consumers. Traditional Indian retailers have been slow to adapt to the changing consumer behavior and have been at war with eCommerce giants for the last few years.

Until now, the online solutions available to retailers have proved to be a moneysucker, and many retailers were unable to compete with the complex algorithms of the existing eCommerce platforms. Coupled with high rates of returns, order cancellations, and unwilling customers, Indian retailers are scared of the online marketplace.

A few vCommerce apps have already started revolutionizing the way Indians shop online. 50% of Indian shoppers will prefer to purchase online by 2022. The pandemic has also pushed the importance of hyper-local retail and the need to support local businesses. The millennial demographic (18-35) makes up almost 80% of online shoppers, and retailers must learn to meet their demands.

How will Video Shopping change the way People Shop?

Video shopping may also create doubts about security, but most apps on the market come with detailed security measures. Disabling screenshots, encrypting personal information, and allowing only the customer to make the call-back are some of the measures applied by vCommerce platforms.

  • The burst of ecom during pandemic (including grocery, food, medicines, daily needs, etc)
  • Mention how current platforms don’t support hyperlocal much? But hyperlocal is the need of the hour.
  • Discomfort/disadvantages that customers face. – websites turn out to be inauthentic, what they get is diff from what they say (because they don’t see the product live), the rise of WhatsApp & fb marketplace, a lot of scams, etc happen. And a huge problem for returns.
  • Overall – customers are frightened to shop due to a lack of trust in a website
  • (big problem) 90% of sales happen in big eCommerce and not in other retailers’ ecom

Seller's Point of View -

  • The market is growing, but they don’t know how to go about it.
  • 80% of eCommerce startups fail to make it past the first year due to several limitations and challenges of eCommerce platforms. Expensive websites, low conversion rates, monopolistic competition from eCommerce giants, and cyber frauds have plagued the Indian online retail industry for years.
  • Unable to provide personalized shopping experience losing market share to e-commerce.

eCommerce v/s vComemrce

eCommerce
  • A moneysucker: website costs, online ad expenditure, flash sale, and customer discounts, increased shipping costs due to high rate of return & cancellations
  • 80% monopolistic hold by eCommerce giants like amazon and flipkart
  • Sell through google adssocial media, website, seo content
vCommerce
  • All you need is your video store
  • Promotes a hyper-local marketplace
  • Sell through video

Consumer behavior is changing, and the pandemic has only accelerated this change. Many brands have started offering a personalized shopping experience through chatbox, personalized gifting options, a virtual assistant, etc. Video shopping will provide the ultimate personalized shopping experience with an in-store vibe.

Video calls have already proved helpful for online retailers who have leveraged it as a potential consultation and sales tool to attract loyal customers. Last year many retailers used WhatsApp as a means to connect with their customers in real-time. But security was an issue, and handling a large number of calls seemed impossible. vCommerce will solve the limitations of the existing solutions to connect consumers to retailers seamlessly.

The only question is will the Indian retail industry realize the potential of a vCommerce platform, or will they be slow to adapt as they have been with eCommerce.

Published by – https://startuptalky.com/

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