Updated On: June 25, 2024

Reduce Overhead & Boost ROI: How Video Commerce Saves Costs

Phygital video commerce is a new concept in the world of retail. It blurs the line between offline and online channels. Retail companies are trying to adopt this technology for reduced operational costs, their overhead, and Improved marketing ROI. Although it might seem that it is just another internet buzz, let me tell you it is a path-breaking technology that can completely change the traditional e-commerce platform. It actually can help companies to reduce operational costs and boost their revenue. 

What is Video Commerce?

Video Commerce or Phygital refers to the use of video content to promote and sell products and services on the Internet. It combines the traditional e-commerce experience with pre-made shoppable content and live-streaming video. The importance of video commerce has increased a lot for companies and brands as it is more interactive than traditional e-commerce platforms. 

It also streamlined customer experience (CX) since it fills the gap between offline and online experiences as people are skeptical about online products when it comes to trusting the product as there are lots of cases when the product doesn’t meet the expectations of the customer. It is also true that just an image of the product cannot describe it. Thus there was constant demand for another revolution in the field of ecommerce and the same expectations can be achieved with the help of modern In-store technology solutions like Phygital Video Commerce.

According to a Coresight Research survey conducted in 2022, 90% of US consumers use social media, and 65% use social media as part of the shopping process

In this article, we will discuss how Phygital saves costs and boosts revenue:

Operational Costs

With the help of Phygital technology, retail companies can reduce operational costs such as staffing, inventory management, and real estate. 

It can also be useful for inventory management, reducing excess stock and storage costs. 

Retailers can reduce significant overhead costs if they integrate this technology into their brands. In this way, Phygital technology can be used for reduced operational costs. 

We will discuss later in this article how phygital video shopping reduces operational costs in retail.

Cost Effective Marketing

Offline Retail Stores need to print large banners to display their promotion and advertising. Retail companies can use phygital technology to promote their products to target audiences, reducing wasted spend on broad-based advertising.

Therefore it will improve marketing ROI. Phygital is a human dialogue by nature, which is far more engaging than any other e-commerce content out there. Brands will get good ROI with the paid video ads. 

Phygital technology is well suited to qualify leads and shorten the consideration phase of sales funnels, especially for big-ticket size items such as luxury goods, cars, high-priced consumer electronics, and real estate. 

Some study also shows us that it reduces the return rate. 

According to Coresight research,” returns drop by 50% on items bought via Live Shopping or Video Commerce.”

Streamlined Customer Experience

Using phygital technology businesses can offer personalized experiences, leading to higher customer satisfaction and repeat purchases.

Businesses can use this technology to enhance customer experience in various ways such as product demos, visual storytelling, shoppable videos, and tutorials. 

Customers will try to engage with the visual presentation and if the company can make good visual storytelling then it definitely can streamline customer experience. 

Therefore Phygital as a video commerce platform has the potential to revolutionize the whole e-commerce market. There is no doubt about it. 

Data-Driven Decision-Making

Brands are using phygital to streamline the customer journey and reduce friction and it can help businesses to make data-driven decisions. By using phygital technology companies can understand about their consumer since it collects data after their interaction with the product. Therefore brands can make decisions based on the data so there will be a high chance of success in that decision since it is based on consumer behavior. 

Enhancing Offline Store Experience

Using In-store technology solutions for cost-effective customer engagement through phygital. Customers wouldn’t be bored to watch the visuals as it is more like entertainment. Customers will try to engage with the product after experiencing it visually. 

Therefore In-store technology solutions for cost-effective customer engagement through phygital is really possible. It is better and at the same time, it can amplify the overall experience. 


In this article, we have discussed how Phygital technology can reduce the cost of marketing and overhead costs. We also have observed that It is not only cost-effective but is also better compared to traditional e-commerce platforms. So we can conclude that phygital technology like Phygitalmax is the future of the e-commerce market. It is proven that with advanced technology such as Phygital videos, we are moving on to a future of the latest technology. With the help of Phygitalmax, it is possible to streamline customer experience (CX) while shopping. 

The author

Yogesh Bhatt

Yogesh, a Gen Z himself, is obsessed with how tech is revamping shopping. Here, he decodes the rise of live video shopping, phygital experiences, and how brands are wooing his generation.Tired of mindless scrolling? Buckle up for hacks and real talk on creating awesome shopping experiences for YOU!

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