Unlike the teleshopping shows of old, livestream shopping events are engaging and interactive. As a result, they attract a more engaged audience who are likely to buy.
From a fashion show to a cooking skills masterclass on TikTok, many retailers leverage live streaming to boost sales and brand loyalty. But what exactly is live streaming shopping, and how does it work?
What Is Live Streaming Shopping?
Live streaming shopping is a form of social commerce and video content that features product recommendations from key opinion leaders (KOLs) or celebrities. It has become trendy in China, where it is credited with making Douyin one of the world’s most profitable ecommerce companies, and media giants like TikTok and Amazon are beginning to test the trend in their channels.
The concept is simple: KOLs or influencers host a livestream and describe, model, or demonstrate products to an online audience. In addition to entertainment value, these videos also serve as an educational resource for consumers interested in a particular product category. The host addresses product questions and concerns in real time, and shoppers can purchase directly through the live stream platform or a link to a brand’s website to continue the transaction.
For brands leveraging this trend, the aim is to give consumers access to unique products they wouldn’t otherwise find elsewhere. FOMO, the fear of missing out, is a powerful motivator for consumers, and providing exclusive, limited-time deals or offers can help drive sales.
In terms of audience, Gen Z and millennials are the primary target audience for this format.
Why Is Live Streaming Shopping Important for Ecommerce?
Livestream shopping has become the latest trend in ecommerce, offering brands a new way to reach shoppers and sell products online. The livestream format is similar to the infomercials that many generations grew up watching on TV. Still, it takes things one step further by allowing shoppers to interact directly with the host.
The live stream format allows real-time customer interaction, fostering trust and loyalty. You can also promote a giveaway or limited-time offer during a livestream event to generate buzz and boost sales.
Combining live streaming with augmented reality (AR) to give customers a fully immersive experience is another advantage. It will allow shoppers to try on virtual products and see how they look in real life before making a purchase decision. It will be a game changer for the retail industry, transforming how consumers discover and engage with products.
While some retailers have experimented with livestream commerce, most have yet to embrace the technology entirely. The biggest reason is that it requires a different mindset than traditional ecommerce and social media marketing. Instead of creating content that appeals to FOMO or entertainment value, brands must focus on providing educational and inspiring content to their audience. It will attract a more engaged and loyal customer base and more likely to make repeat purchases.
How Can Ecommerce Benefit from Live Streaming Shopping?
If brands want to level up their ecommerce conversions, they need to take their product launches and engagement with shoppers to the next level. That means leveraging live streaming to educate consumers and reduce return rates.
Livestreams are an excellent way to showcase products in a realistic setting so consumers can ask questions and get a feel for them. It is essential for products that are difficult to experience in person, such as wedding dresses or athleisure clothing. According to a study, 84% of people say they’ve purchased a product because they saw it in a video, making live shopping a powerful tool for brands that want to drive long-term ROI.
But to drive sales, a brand needs something unique to offer and a hook that will attract shoppers to the livestream. That can be anything from contests, special offers, or featured guests. For example, a sofa company partnered with a noughties band to appeal to its millennial audience and generated more than $50,000 in sales in just 24 hours.
Another key to success is ensuring shoppers can easily purchase the products shown in the stream. Many brands use countdowns and other mechanisms to remind consumers that their deals are only valid while the live stream is on. It helps to drive conversions by playing on consumers’ fear of missing out.
What is the Future of Live Streaming Shopping?
Unlike traditional retailers that can only serve a handful of shoppers at once, live-streaming shopping platforms put influencers in front of thousands of customers. It allows them to field questions, show off different styles of products, and provide bespoke recommendations until buyers are ready to purchase. This kind of one-on-one customer service is a big reason shoppers love livestream shopping, and it’s an advantage that online brands can’t match.
Despite its relative newness in the United States, livestream shopping has found solid footing in other countries.
The popularity of livestream shopping in China has much to do with its ability to play on FOMO. Many streams feature limited-time deals or only have a certain number of units available to encourage viewers to act quickly. One interview from a strategy consultancy tells the story of a woman who waited up all night to order a product that was being featured on a livestream so she wouldn’t miss out.
As the popularity of livestream shopping grows, brands should prepare for challenges ranging from logistics to social media fatigue. However, if brands can build authenticity and personalization into their livestream shopping activations, consumers may be willing to return for more.
