Most Asked Questions about Livestream Shopping and its Implication (Part-1) ---- 6 min read
Ecommerce is being transformed by Live Commerce, and it will only continue to grow.
Our team at Channelize.io is consistently approached by Brands and Retailers throughout the Livestream Shopping space in seek of advisory around Live Video Shopping.
So, to better serve our community, we’ve compiled most frequently asked questions, which will break down queries addressing the basics and benefits of Live Video Shopping, current state of the Livestream Shopping market and much more.
Early adopters of live selling are already hitting lofty sales numbers. To join these brands and build a successful live stream shopping strategy, Book a FREE DEMO with us today.
What is Live Streaming Ecommerce?
For an understanding of this new trend, let’s rewind a few years.
Home Shopping Channels and live shopping networks like QVC started to appear on televisions during the late 70s and early to mid-80s. The channels would invite hosts to run their shows and when celebrity backed products began to circulate in the market, influential personalities would appear on these channels to pitch directly to customers. Customers could tune into these channels, see what’s for sale and shop immediately from the comfort of their home.
Live streaming ecommerce or Live video shopping is the digitized version of home shopping experience via websites and apps which offers brands the ability to demonstrate and ultimately sell products to a live audience that can communicate in that real-time experience. Thus, we can say that live stream shopping has brought home shopping into the mobile age.
How does a Live Stream Shopping Platform work?
Live Stream Shopping Platform gives retailers a way to deliver live shopping experiences resembling the in-store store experience. This personalized experience encourages in-show purchases and audience engagement. Viewers can see products being listed and talked about by a host of a live show. With a seamless checkout process, shoppers can purchase products without having to leave a live show.
During such livestream shopping shows, audiences can leave comments via live chat and can react in real time with likes and emojis. All this interaction via a Live streaming ecommerce platform makes for a far more engaging shopping experience than simply adding an item to a shopping cart.
What is the Live Video Shopping market size?
Live video shopping first arose in China whereby eCommerce giants began conducting live shopping shows hosted by celebrities. After China, the US also began to catch up with this technology of ecommerce live streaming and generated huge profit.
As per reports, live video shopping garnered $60 billion in global sales in 2019. Undoubtedly China dominated the market while $1 billion of sales were generated from the United States. Because of this success, live streaming commerce has become a key shopping channel for shoppers all over the world including countries like the US, UK, Spain, Germany, Europe, Canada etc.
Furthermore, the US live stream shopping market is expected to reach $11 Billion by 2021 and $25 Billion by 2023.
What is the difference between Livestream Shopping and traditional Online Shopping?
Consumers today are not finding traditional online shopping experiences exciting anymore because of the following reasons:
- Lack of personal touch
- Buyer engagement is NIL
- Recorded and biased reviews
- Non-engaging content
- Restricted influencer and advocacy marketing
- Customization of products is not possible
- 1-way communication
With the ability to offer Improved Product Experiences, Shoppertainment and Real-time 2-way communication, live stream shopping successfully overcomes the drawbacks of traditional online shopping. This is how live streaming commerce differs from traditional online shopping.
Is Live Streaming Selling the Future of Retail?
When you leverage live streaming selling you give shoppers the opportunity to interact with you in real-time and experience your products in ways that lead to quicker purchase decisions. In other words, it empowers Real-time 2-way communication.
Well, when buyers join your live shopping show, they can participate in the running commentary about whatever they’re seeing, so there’s immediate interaction.
When viewers are in that moment, watching live content, they have an emotional reaction. And this reaction is important for brands as audiences are more likely to purchase from a brand that they have an emotional connection with.
Live streaming selling opens a new world of possibilities for brands to be able to connect with buyers on an emotional level, instantaneously, to significantly drive sales. Hence live streaming is definitely the future of shopping – and it’s time for you to take advantage of the growing trend.
What are the benefits of Live Streaming Ecommerce?
Live streaming ecommerce or Live video shopping is a Powerful Sales and an Effective Marketing Tool that successfully meets today’s shoppers’ needs and no matter the size of your brand, Live video shopping holds tangible benefits for your business.
Here are some of the benefits that live video shopping offers:
- Enhanced Brand Exposure
Live video shopping can bring more potential clients to you and can easily expand your reach. The immediate and unfiltered nature of live shopping shows lets you grab the attention of most audiences and deliver your brand message to them leading to brand exposure.
- Better Interaction with Prospects
Audience interaction is the key to boost sales conversion rates. Effective communication helps you understand what your prospects are thinking, what are their pain points, and what are their needs. This valuable information lets a brand mold its marketing message for maximum results.
Live stream shopping can let you do that with ease by offering prospects a shopping experience that is interactive, engaging and personalized.
- Leverage Impulse Buying
Livestream shopping shows are prompt and can persuade audiences to take quick actions. Getting live shopping shows in front of spontaneous shoppers can substantially improve your sales. Thus via live streaming selling brands can use customer behavior of impulse buying in their favor.
- Easy to Adopt and Use
With a live streaming ecommerce platform there would be no switching of apps as live shopping features can be added right within your website and apps. By integrating the right live video shopping platform into your existing e-commerce website, apps and marketing stacks, the functionalities you are accustomed to using will not be affected.
- Builds Relationships and Credibility
One huge perk of live streaming ecommerce platforms is better relationships with consumers. Streaming commerce gives your brand a face and voice which makes it easier for customers to trust you eventually leading to brand credibility.
How is Live Stream Shopping the key to building a brand’s authenticity?
Brand value is built on authenticity, the more authentic your brand is, the more loyalty you will receive in return. Thus you need to recreate a sense of authenticity to drive customer loyalty. Live stream shopping enables brands to become more transparent with their buyers which in turn builds trust, enriches buyers’ experience, and keeps them coming back for more.
Live streaming a how-to tutorial, a live product demonstration or never-seen-before content like videos of products being made reflects the authenticity of a brand. Furthermore, giving customers an insight into company culture, interviewing an employee in real-time, etc builds stronger connections with your customers as customers love seeing the humans behind a brand.
Hence, live streaming commerce is the key to building a brand’s authenticity.
How are brands selling using a Live Commerce Platform?
Shoppers today want more than just a product, they want to feel a connection with a brand. They look for personalization, better product experiences, interactive shopping environments, and much more. With a live commerce platform brands are able to fulfill consumers’ expectations while generating sales.
Hence brands across industries are implementing sales strategies like running flash sales, limited time offers, deals and discounts, auctions, live contests, and giveaways during live shopping shows to sell their products.