In the era of social media and ecommerce, live shopping is bringing a new twist to how consumers shop online. Livestream hosts(often influencers or celebrities)allow viewers to interact with and purchase products.
Statistics reveal that consumers spend an average of 15 minutes engrossed in live-streaming events. That’s a compelling reason for brands to adopt this innovative shopping experience.
Real-Time Interaction
Live video shopping is a digital revolution that can transform consumer behavior. It’s reshaping the way consumers research products and make purchase decisions. And it’s a powerful tool for influencers to leverage to drive sales and brand exposure.
As more consumers turn to online shopping, live-streaming platforms evolve into multi-functioning e-commerce hubs featuring virtual consultations, product demonstrations, and one-on-one interactions with influencers and brands. But what makes this new form of social selling so effective? And how can marketers leverage it to generate revenue and build a loyal following?
Unlike other types of e-commerce, live streaming allows consumers to interact with a product in real-time. It creates a sense of familiarity and intimacy with the product, which can help dispel consumers’ doubts and boost their confidence in purchasing decisions. This type of interaction is particularly effective for products that are hard to evaluate from a distance, like cosmetics, fashion, and electronics.
As a result, live-streaming e-commerce is especially popular among younger generations. And while it is a trend that is growing globally, it is most prevalent in China, where almost half of the country’s population used live-streaming platforms to shop in 2022. This growth will continue as influencers and brands embrace LSI’s potential to drive sales and increase audience engagement.
Time-Sensitive Offers
While flipping through cable channels, you may have landed on a QVC infomercial hawking the latest cleaning technology or a social media influencer promoting their favorite makeup. The common denominator for these products is the ability to buy them immediately. The fact that these events take place in real-time adds a sense of urgency to the shopping experience, which can boost purchase intentions for consumers.
That is where live streaming and e-commerce come together to form a new type of retailing: live video shopping. This format combines the benefits of both live streaming and e-commerce, allowing brands to showcase their products in real-time, answer questions sent in by customers, and demonstrate the product through multiple angles, unlike online shopping, which typically only offers one flat image of a product.
Streamed events are popular with both Gen Z and millennials, who often watch live streams from their favorite personalities, brands, and niche interest groups. Some retailers see as much as 20 percent of sales initiated through live commerce coming from younger consumers.
Depending on the nature of your business and the audience you want to reach, there are two main types of live-streaming shopping options: one-to-many and one-to-one. One-to-many live streams allow you to showcase products to a general audience during a fixed event. At the same time, one-to-one lets your retail team interact with customers in an intimate, face-to-face manner.
Urgency and Exclusivity
In the post-pandemic era, consumers demand more relevant experiences than ever. They expect frictionless, connected, and highly personalized online shopping experiences driven by data. One of the ways marketers can meet these demands is by offering a live video shopping experience.
Fusing live streaming and online shopping creates a powerful new customer engagement tool. Live shopping events enable viewers to watch products being used and demonstrated in real-time and then buy them with a single click. Marketers and consumers are embracing this innovative form of shopping, with brands like Amazon, QVC, and social media platforms like Instagram, TikTok, and Facebook experimenting with live-streaming and shoppable content.
This type of livestream allows viewers to ask questions in real-time and receive answers, giving them a more detailed understanding of what they’re purchasing. In addition, the opportunity to interact with a brand representative in a personal way makes customers feel valued and appreciated.
This interaction also creates a sense of urgency and exclusivity around the product, making consumers want to purchase it immediately before it’s too late.
The Fear of Missing Out
Online shopping has become a powerful e-commerce tool due to the rise of influencer marketing and social media platforms. It’s popular among Gen Z and millennials, who seek out innovative ways to shop. Streaming live lets them engage with a brand in real-time and buy products without leaving the platform.
The combination of live video, interactive communication, and direct purchasing reduces decision times (encouraging impulse purchases), enhances engagement, and increases sales. This type of commerce, which experts call “reality shopping,” is a glimpse into retail’s future.
It’s also a great way to personalize the online shopping experience and is especially effective with younger consumers who want brands to connect with them. For example, if an influencer talks about how a specific product works, the customer can ask questions and receive personalized advice.
The best way to make a livestream successful is to ensure the content is entertaining and relevant. Otherwise, consumers may lose interest. It’s essential to carefully select the right host(s) and products to create a meaningful and profitable livestream shopping experience. Streaming live also requires a solid digital presence, such as having an e-commerce website or app ready to convert. Some companies use third-party platforms like TikTok or Meta for their livestreams, which can help save on costs and enable first-party data collection.