SmartBiz IT Research Library

Retailers have long understood that "merchandising" the art of displaying, describing, and creating appeal around products is of critical importance. Merchandising sets the stage for a pleasant and engaging shopping experience that drives immediate sales, grows brand loyalty and builds affinity over time. However, early-generation eCommerce Web sites were limited in the amount of "merchandising" they could deploy because of the static nature of Web 1.0. Increased broadband penetration and more sophisticated applications are making high-quality video a key weapon in the online retailer's merchandising arsenal -- just as it has been for advertisers. While video used well in the online retail space has been shown to increase the quality, duration and profitability of shoppers' site visits, video not delivered quickly and seamlessly can have the opposite effect. The results are abandoned transactions, lost revenue opportunities and diminished brand loyalty. This paper examines challenges and solutions available to help online retailers successfully integrate video into their online merchandising strategy.