How Costco and Ritz Camera Increase Online Sales
SellPoint gets paid by the manufacturer to host the videos and to find more places on the Internet where they may gain traction. When necessary, the company can help produce the videos as well with its own staff. “The videos can range in complexity based on the product and what the manufacturer is trying to communicate,” said Rick Martin, SellPoint president and CEO. “It can be as simple as a 360 zoom in and zoom out video to a more extensive presentation.” He added that SellPoint turns the online disadvantage of lack of in-store experience into an advantage because, in the virtual world, there is no shelf-space or display limit. “Online you have much more creative freedom to provide shoppers with information,” Martin said.
The videos are SKU-specific so there is no brand-marketing. If the video isn’t designed to help sell the product, then SellPoint won’t host it, even if the manufacturer asks them to. “We work very closely with the retailers to make sure any content is really appropriate to increase sales and be that point of sale piece,” Martin said, which is why the videos have no links or references to other sites. “We’re very specific about our purpose on the product page, which is to increase conversions and reduce returns so we work with [retailers] to we make sure they’re comfortable achieving our mission.”
SellPoint carefully tracks how shoppers interact with the tours so they can be improved and there are several things the company has learned. First, the average shopper spends 2.5 minutes at the product page viewing the tour. And in a recent study with Coremetrics SellPoint discovered increased conversion rates of up to 30 percent from visitors who watched the online demos.