Livestream shopping is an eCommerce phenomenon that has taken China by storm, generating over $300 billion in 2021 and accounting for 11.7% of its total eCommerce retail sales. It initially gained traction due to the pandemic-fueled closure of brick-and-mortar stores, and it has been steadily increasing in popularity in other countries.
But what exactly is Livestream shopping? Is it just another trend or is it here to stay?
In this article, we’ll explore the fundamentals of Livestream shopping, outlining how you can use it to reach new audiences and generate more sales for your eCommerce business.
What is Livestream shopping?
Livestream shopping is a form of social commerce that combines online shopping, live TV, and social media into an interactive, immersive, community-driven experience.
It allows brands to demonstrate and showcase their products to an online audience in real-time, transforming the shopping experience into something new and unique. People can tune in, comment, chat, ask questions, and purchase the product directly.
The host is often an influencer or celebrity, and they can interact with the audience and respond to their questions throughout the Livestream.
Benefits of Livestream shopping
For consumers, live shopping essentially offers the best of both worlds.
Just like conventional online shopping, they can shop from the comfort of their own home (or in their local café, on a train, or anywhere else for that matter) but the live interaction makes it feel closer to a traditional in-store experience.
They can discover new brands and get a feel for their products in a way that is much more personal and engaging than regular online shopping.
For brands, Livestream shopping offers a way to reach new audiences and give them exactly what they’re looking for: an innovative, entertaining and convenient way to shop.
The host can ask the audience what they’re interested in seeing next, enabling the brand to create content that they know will engage their target customers. It also accelerates the consumer decision journey from awareness to purchase and can result in more conversions than traditional eCommerce platforms.
Live shopping drives engagement, encourages organic sharing and increases brand awareness and brand loyalty. People are more likely to trust a person than a brand, especially if it’s an influencer who they’ve been following for a while.
This means that Livestream shopping is a great opportunity for brands and influencers to work together to their mutual advantage.
Live shopping trends and statistics
Exactly how this trend will develop in the west remains to be seen.
However, if the following statistics are anything to go by, the future of Livestream shopping is very promising:
- Taobao is China’s biggest live shopping platform, generating an estimated $74 billion in 2021 alone.
- As of the second quarter of 2021, live streaming was up by 13% compared to the same time the year before.
- Research by McKinsey & Company suggests that live-commerce-initiated sales could account for 20% of all eCommerce by 2026.
- According to Coresight Research, the US live streaming market will be worth about $25 billion by 2023.
- Live streams can capture sales from 10-20% of the audience, which in some cases is up to ten times higher than conventional eCommerce conversion rates.
- Live shopping has enormous monetary potential for eCommerce brands, with Forbes forecasting a market value of $500 billion in 2022.
- Globally, the social commerce market is estimated to reach $604.5 billion by 2027.
Tips and strategies for success
Implementing a successful live shopping strategy can result in improved conversion rates and increased engagement, but preparation is key.
There are several platforms to choose from, including Facebook, Instagram, TikTok, and Amazon Live to name a few. Each one has its own strengths and weaknesses, so you’ll need to do some research to determine which one is best suited to your brand and your needs.
Once you’ve decided which platform you’re going to go for, start experimenting and exploring to see what works best for your brand, your products, and your audience. Bear in mind that consumers are more receptive to brands and influencers that they trust, so it’s important to build an engaged, loyal fan base before trying to sell anything to them.
There are several Livestream shopping apps available that make it easier for sellers to showcase their products, determine how well they’re performing, and measure how engaged their audience is.
For example, Bambuser provides users with customer engagement and sales statistics and allows them to embed their live shopping events into their websites. Live Scale is another app that enables users to create a fully branded experience, including being able to stamp their logo directly onto live broadcasts.
Ensure Livestream success with ParcelPlanet
A final and absolutely crucial point to note is that live shopping events can generate lots of activity and high sales volumes in a short period. While this is undoubtedly great for business, it can put a huge strain on your logistics and order fulfilment system.
Choose ParcelPlanet as your order fulfilment provider to ensure that your logistics strategy has the right processes, technology, and infrastructure in place to ensure a smooth, high-quality experience for your customers.
We will always strive to be your authoritative source on eCommerce and order fulfilment trends, so if you’re thinking of diving into the world of Livestream shopping, check out our blog and our services to see how we can benefit your business today.
