The clips are produced with Coull technology and are being distributed online through AOL's buy.at affiliate network.
Affiliates are incentivised to display interactive video of Littlewoods catwalk shows on their sites by receiving a share of profit from each sale they generate.
The interactive video ads, which were developed in conjunction with technology supplier Coull, feature models wearing the latest big-brand clothing from the LittlewoodsDirect.com site.
Each item of clothing and accessory featured in the video has been assigned its own tag so that customers can click through and buy it.
Users are directed to a dedicated page for the product, and a further click will forward the customer to the product page on the LittlewoodsDirect.com site.
The activity is tracked to ensure affiliates are paid the correct commission for the activity they generate.
If the video ad is copied from an affiliate's site and pasted into another website or a customer's social network profile, Coull's technology ensures the tracking system remains embedded.
The application is available for affiliates on the network and is the first time this video format has been used as part of an affiliate campaign in Europe.
Neal Preece, e-commerce director at Littlewoods Direct's parent Shop Direct Group, said: "Shop Direct Group are always looking to innovate and find new ways of reaching our customers.
"The ability to take the customer directly to a product page from a product video opens up new and exciting opportunities for us.
"It's a great tool for affiliates, which enables them to enhance their campaign promotions and drive even more sales with exciting, high-quality content."
LittlewoodsDirect.com features 16,000 product lines from furniture, white goods and electronics to clothes for men, women and children. Outfits from major brands such as Diesel, Morgan and French Connection are featured, as well as accessories and new ranges from Trinny and Susannah.
Brendan Condon, managing director of AOL's Platform-A International, said: "Buy.at is the first affiliate network in Europe to integrate this technology for the advertisers and affiliates on our network and Littlewoods is the first client to adopt it.
"This interactive video tool will maximise the impact of the LittlewoodsDirect.com brand, engaging the customer online and driving more sales for their affiliate campaign."