Auction site eBay is to give its UK sellers a new tool to boost their sales by allowing them to advertise their products by using videos in their listings for the first time.

Sellers can upload video from a list of hosting sites approved by eBay. These include YouTube, Dailymotion, and Vzaar.

Videos can be added to any listing, such as this example, but may be most useful in the case of vehicle listings, and other items that have previously required multiple pictures.

One company providing video services for eBay sellers is Vzaar, a startup which was launched by former eBay employees Adrian Sevitz and Dan Wilson. It allows eBay sellers to film their items on digital cameras or mobiles, upload it to Vzaar, then insert it into the eBay listing.

It’s a positive step from eBay, and should give potential buyers more confidence in the item on sale, by confirming it’s authenticity, and seeing the item in action, in the case of cars and bikes.

Video can be a valuable sales tool for etailers, and can give shoppers a chance to see the products in action, helping them to get a feel for the kinds of products that they normally wouldn’t buy online.

For smaller etailers, videos are relative cheap to make, and can be hosted on YouTube or Google Video, which may bring additional traffic to your site.

Video as additional content can also be a success. In the case of online retailer Blendtec, the idea to create video demos of golf balls, cans, and iPhones being blended in their machines has been a runaway success.

The videos, which cost very little to produce ($50 for the first six) have been seen by over 8m people on YouTube and have resulted in a 650% increased in traffic and, most importantly, a massive increase in sales. All of which sounds like a rather good idea…

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