In its second-largest acquisition, Amazon buys the company for $970 million.
The retailer also doubles sales of products it links to YouTube videos.
In its most recent redesign about a year ago, web-only e-retailer Pegasus Lighting added more product images and customer reviews. But in recent months, the e-retailer wanted to go a step further and providing more rich content and specific information about its products, so it implemented on-site video for the first time.
“We were adding up to 15 photos of each product, and many included zoom and rotating images,” says vice president Chris Johnson. “Customers loved the update, so video was a natural next step. We wanted to show our light fixtures in action so web site visitors could have a closer look at light output, included hardware, color temperature, and more.”
The e-retailer posted its first YouTube video six months ago to its Closet and Pantry Lights category page that features product recommendations, lighting placement ideas and installation tips. Since then, the retailer says, Pegasus has experienced a 100% increase in revenue for closet and pantry lighting products, Johnson says. Also, the conversion rate on the Closet Lights page jumped by 27%.
Adding video to the site was basically free for Pegasus, as Johnson filmed it himself with a high-definition camera he bought to take videos of his kids. Johnson taped a company employee in the video, found some royalty-free music on the web to use as a background and edited the final product in the iMovie application on his personal Apple Inc. computer.
Pegagus Lighting, No. 842 in Internet Retailer’s Second 500 Guide, is expanding its use of video onto individual product pages as well as other categories. It has about 10 videos posted now, and its most popular video that features the same employee installing under-cabinet lighting in her kitchen has garnered 2,780 views. “Under-cabinet lighting is our most popular product line,” Johnson adds. “So we’re in the process of launching Product Spotlight videos to showcase each light fixture individually.”