LIVE COMMERCE: THE NEW DIGITAL REVOLUTION IN MARKETING.
“Understanding Live Commerce and what's all about“
The rise of social media and video tools has started a new wave of trending content consumption, live streaming, and live commerce.
However, you shouldn't be shocked by the apparent success of video shopping.
Numbers and results from a 2022 survey suggest that up to 74% of millennials stated they find videos helpful while doing comparison shopping.
In the world of e-commerce, interactive technologies and real-time services have become standard features. From your daily mobile apps such as Instagram and Facebook to Amazon live chatbots, online customer care has become easily accessible.
We can now all expect individualized recommendations thanks to the era of “Everything online”.
Live Commerce-The New Digital Revolution in Market
Live commerce: Shaping new marketing realms:
Finstock estimates that Twitch, a well-known live-streaming website, receives 30 million visits on average per day. Adopting live commerce will help you future-proof your brand.
Live commerce is a marketing solution that mixes live video broadcasting with quick purchases. This new style of marketing gives support that comes from either selling actual products live during a stream or getting it through a chat feature or reaction buttons from a social community.
Brands can use live commerce to sell goods via live streams on online platforms. The strategy gives customers an engaging experience by letting them make purchases and ask inquiries while live streaming.
Live commerce is the merging of online shopping and live-streaming video. As a result, customers are assured and capable of discovering answers to their queries, which would otherwise prevent them from putting an item in their cart and making a purchase.
When video and retail come together, it boosts engagement, reduces the distance between consumers and the products, encourages purchases, and, in situations where bidding is present, raises the average sales price, making live commerce, “The next big thing” in marketing.
How would this eBook help you?
The marketing realm is continuously growing and in this era of “digitalization of everything”, Live commerce is the best approach.
This eBook will illustrate how live commerce affects the market and sales, as well as show entrepreneurs and marketers new ways to include live commerce into their strategies. Through this eBook, we are planning to forecast the future of live commerce so that you can get the best of it!
The Future of Marketing and Live Commerce
The e-commerce sector has been expanding nonstop since it first emerged!
When it comes to purchasing, this sector has succeeded in becoming the most popular source of engagement. We've found ourselves in a situation where we spend a lot of time on the internet and make decisions to get the best deal before buying anything from anybody.
Live commerce is the new future, and it’s easy to get around it as well!.
Let’s take it from the beginning!
Then, retailers were pushed by COVID-19 to think creatively and beyond the box.
They had to develop new strategies to interact with customers once their stores closed, in addition to the e-commerce customers they already had. They also had to develop ways to convert and actively engage customers used to purchasing in-store.
SNext, we began shopping from the comfort of our homes while browsing websites on our computers, which led to shopping directly on social media posts from our smartphones, and now we're witnessing the next stage — live shopping.
With research estimating that live streaming will be worth billions in both markets, the convergence of live streaming and e-commerce has been primarily driven out of China and is also gaining significant traction in the US.
Consumers will now have access to a new multi-faceted experience that is personalized, frictionless, and experiential across online and physical touchpoints, thanks to this abrupt change toward embracing everything digital.
To be precise, live stream commerce has contributed to an incredible shift in the e-commerce sector over the past several years. Live streaming was used by businesses to launch sales, and they reported a 30% increase in client engagement. According to Coresight, live shopping produced $60 billion in global sales in 2019, but the US only contributed less than $1 billion to that total. (Infographic showing 30% increase)
The single goal of live streaming selling or live commerce at first was to expand the clientele and maintain sustainability. To make an everlasting impression on viewers for their products, marketers can use live streaming to build a large viewing community.
Live commerce will dominate e-commerce in the next five years.
Businesses and brands are now placing more emphasis on customer interaction than on selling. Because consumers are the main emphasis, plans are made to innovate for their satisfaction and novelty.
As sellers, businesses, and brands learn how they progress toward getting known in the market every day, the value of live streaming is rising every day.
With the technology being embraced by brands and sellers, it is anticipated that by 2025, Live commerce will have a multiple-fold growth in its global market share.
Why is Live commerce so important?
Along with changing the whole digital marketing scene for good, Live commerce has now become an essential marketing tool.
Retailers benefit from live commerce by having greater visibility and reach, which enables them to.
With video, businesses can interact more deeply and immediately with their target market.
Live streaming is undoubtedly one of the most widely used ways to consume information as firms concentrate on selling products online. Other than revolutionizing the face of digital marketing, live commerce also offers additional benefits.
Better interactions and relationships with customers
This not only puts the goods into perspective but also helps customers get a better sense of a product, increasing the likelihood that they will buy it. People are more inclined to return to a brand and stay as clients if they are more comfortable with it.
Broadens your audience
Because live broadcasting reaches a broader audience, there are virtually no expansion constraints. In the end, this means that there will be more eyes on the products, which will raise brand awareness.
Online shop experience creation
This is what the e-commerce industry has been lacking. The experience of shopping online today involves human connection to help customers feel more connected. It is no longer just about making a purchase.
Live Chat Boosts Conversions and Engagement
Through comments, reactions, and live chat, users can take part in a live stream. They get to witness uncensored, unedited content, which is appealing to viewers nowadays. This means that a live broadcast has the potential to increase the number of viewers, keep them engaged for longer, and decrease the bounce rate of your store.
Live commerce helps you outperform your rivals
To host live streaming, finding the perfect employee or influencer can also make a huge difference. Sales will increase with high-caliber live-streaming events that are interesting and educational. Live streaming enables several innovative ways for businesses to outperform rivals and help them stand out from the crowd. Customers will be captivated and lured in by thinking about their attraction, following, and interest in the products.
The Journey of Live Commerce
How it all started:
It all began when Alibaba launched Taobao Live in May 2016, and a new era in sales began. Before the pandemic, the shoppable video was already a thing in China, but COVID-19 brought with it a live commerce boom that is still going strong today.
China has undoubtedly set the bar high by introducing live commerce, which allowed businesses to interact with consumers more personally. The eighth most popular website in the world is owned by Alibaba. With consumer-to-consumer live broadcasting, Taobao, the largest e-commerce website in the world, supports farmers, business owners, and independent contractors.
The first place to check the effects of live commerce to comprehend the impact of live commerce is China, where it all began. It is anticipated to grow into a $770.70 billion market by 2023.
The introduction of Alibaba's Taobao Live in May 2016 is frequently cited as the beginning of popular live commerce. Taobao developed a brand-new method of online purchasing that allowed customers to shop and watch live content simultaneously.
American adoption of live commerce
Western businesspeople have been sluggish to take advantage of the live commerce phenomenon, which is the merging of retail with technology..
Although early applications didn't fully utilize interactive video technology, TV shopping shows like the Home Shopping Network, JTV and QVC were among the first to introduce live video-based shopping online. Amazon debuted Amazon Live in 2019, which was a latecomer.
A few firms also attempted to capitalize on the craze, but early video-based purchasing was not widely adopted by American customers.
The Pandemic Chronicles
The epidemic encouraged the use of remote models among customers and drove digital change across sectors. Live commerce, as a result, eventually took off..
In the second part of 2020, Instagram launched Live Shopping, and Facebook started experimenting with Facebook Shops. With the addition of Walmart, Google's Shoploop, and Shopify, consumers now have a smooth way to purchase things highlighted in live streaming..
For seasonal events, Walmart and TikTok started hosting live-streamed shopping experiences. It's incredible to see how the TikTok community enjoys interacting with their favorite producers and discovering new things thanks to the shoppable live stream experience. TikTok offers a seamless experience for quick in-app purchases, and influencers on the network use their influence to demo stuff for purchase.
What's the present case?
A projected $5.6 billion in sales were generated via live commerce in the US alone in 2020. Live buying soon spread from China. The same is true for Amazon, which now offers live streaming on its home page (you just have to scroll down to find them).
It remains to be seen, however, whether live commerce will enjoy the same level of popularity in Western markets as it does in the Asia-Pacific area.
It's also possible that while interactive influencer streaming is very popular with Chinese consumers, professional broadcasts on a grand scale are more likely to convert American viewers.
Live Commerce Stats: Let's crunch up some numbers.
Live commerce has been viral recently and has been embraced by some of the biggest e-commerce businesses. There is a lot about this developing digital business to comprehend and know.
Live commerce is used by 78% of companies to forge stronger bonds with their clientele. 80% of marketers believe that Livestream commerce will play a significant role in product sharing in the upcoming years.
To truly comprehend the rising impact live commerce has on the marketing industry, we have compiled some recent statistics and data about it.
- Live selling has increased by 76% since COVID-19's inception.
- By 2024, the US live stream market is anticipated to be worth $35 billion.
- Companies claim that compared to traditional e-commerce, live commerce conversion rates can be up to 10 times greater
- Between 2017 and 2020, Livestream retail sales in China increased by more than 280%.
- Clothing and fashion are the product categories that are most frequently included in live broadcasts.
- In three years, China's Livestream sales industry increased from $3 billion to $171 billion. By 2026, live streaming sales in the US might make up as much as 20% of all e-commerce if China's spectacular Livestream shopping development is any indication.
- By 2024, the US Livestream market is anticipated to be valued at $35 billion.
The most prevalent live commerce category by far is clothing and fashion, which accounts for 36% of Livestream selling events. The following follows.
- Beauty (8%)
- Food industry (7%)
- Electronics for consumers (5%)
- Home furnishings and decorations (4%)
- Vehicles and automobiles(1%)
Look at the ones who've made it
Live streaming is a master at generating interest; thus, it successfully develops one for the e-commerce sector as well. Since e-commerce shares space with live commerce, clients have a vast space to create items with their needs in mind. This has aided brands in building a solid clientele for their businesses.
See how these brands are using live commerce successfully by looking at these examples:
Aldo, a major retailer of shoes and accessories, increased their sales with their first live commerce event by teaming up with TikToker Nate Wyatt and celebrity stylist Mimi Cuttrell as co-hosts.
Wyatt and Cuttrell shared fashion advice and highlighted their favorite Aldo items at the event, and viewers had access to the brand's spring 2021 collection from within the stream.
The pilot was a success, according to Aldo. In the ensuing five days, the website received almost 17,000 page views, with a remarkable average viewing time of over 12 minutes, while the event itself experienced an engagement rate of 308 percent.
Swedish cosmetics company CAIA Cosmetics is no stranger to live commerce; it made its first excursion into live streaming back in October 2019, and it is evident that it recognizes the significance of performance evaluation..
The live tutorials by CAIA founder Bianca Ingrosso average 11 minutes of viewing time, with 60% of users "liking" the content and 17% engaging in the live discussion.
Nordstrom announced the debut of a specific live shopping channel in March 2021. Numerous live shopping events with themes including dressing for special occasions, the best of fall fashion, and spring beauty trends have since been held on the channel..
By bringing such themes into the context of live shopping, Nordstrom can convey them in a way that is more interactive, taking viewer queries and garnering feedback in a way that a "static" piece of material would never provide.
Quivr, a manufacturer of coffee and tea, broadcast its first live event in 2020. Since then, it has experimented with Instagram and TikTok before settling on Amazon Live.
In 2020, co-founder Ash Crawford gave his first live shopping presentation to a 50-person audience, lecturing for an hour on Quivr's company history and products. Since then, he has tried live broadcasting on TikTok and Instagram before deciding on Amazon Live as his preferred platform.
How to access Live Commerce?
No matter the market scale of your brand, you can quickly get started with live commerce and boost your sales to tap into the higher leagues.
Before you get started, you must decide which platform you will use to launch live commerce before you can proceed.
You have a few options when it comes to methods:
- Specialized live shopping apps and platforms
- Creating a custom live online store
- utilizing social media channels with integrated live shopping
Tips for Mastering Live Commerce
Brands should choose one or more of the following top live shopping methods to get started with live commerce and maximize it for maximum performance:
- Decide on a brand format, theme, or niche.
- Work together with celebrities and influencers
- Personalize live feeds
In fact, the live commerce era is inevitable in success and an ever-growing market. Don’t believe us? We have numbers to back us up!
- The majority of American customers watched internet shopping videos while they weren't sure whether they had ever purchased from one. 56% of online viewers watched these films every day; however, a disproportionately more significant percentage of users who watched these videos after making an online purchase did so every week.
- Livestream e-commerce sales in the US were projected to reach $17 billion in 2022. Shopping through online streams on social networks, often known as live commerce, is growing more and more well-liked all around the world. Live online shopping is expected to generate nearly triple the number of e-commerce sales by 2026 or over 55 billion dollars.
- Live commerce is used by 78% of companies to forge stronger bonds with their clientele.
- 17% of US customers regularly watch live feeds of influencer marketing.
- More Livestream commerce, according to 28% of consumers, would motivate them to make social media purchases.
- Customers who used Livestream shopping reported that it enhanced their overall buying experience by 60%.
- 66% of people worldwide want merchants to be more technologically inventive.
The Biggest Player: Youtube:
The most used live commerce platform in the US is YouTube. With 30.2% of businesses utilizing it in 2021, YouTube is the most popular live-stream shopping platform among US shops, with Facebook and Instagram following closely after.
What's the next big step for Live Commerce?
Live commerce has grown consistently and unwaveringly, with worldwide retail e-commerce sales nearly doubling between 2014 and 2021. Since worldwide internet sales increased by 50% to a staggering $1.1 trillion in 2021, it has reached its highest peak yet.
To draw in new customers and keep the ones they already have, retailers must continue to comprehend consumer behavior and be flexible to develop and adapt, relying on pertinent technology and solutions, like commerce, to assist them in this attempt.
By 2026, live commerce, according to a prediction by McKinsey, would generate 20% of all e-commerce sales and be essential for online-only firms. It should therefore be a component of any e-commerce store's marketing plan.
Now you know the power, the tactics, and the numbers
It is pretty evident that live commerce is gradually gaining popularity while being relatively new (in comparison to other traditional marketing tactics) and is not stopping anytime soon.
You can easily establish your brand against rivals and create a flourishing community by getting a head start with live commerce.