We get it – abandoned shopping carts', low customer engagement, and lack of trust in your products aren’t exactly great for boosting e-commerce sales.
As an e-commerce marketer, you want to offer customers a personalized shopping experience. You want to build trust, create urgency to drive conversions, and suggest complementary products to increase average order value. Live commerce lets you do it all and more.
Live e-commerce sales are projected to make up 10% to 20% of all e-commerce by 2026. Don’t want to miss out? Read this in-depth live commerce guide to create value for customers and grow your e-commerce sales.
Live commerce or livestream shopping refers to brands and retailers using live video streams or shoppable videos to sell products online. In these sessions, customers watch the stream and shop in real time, combining entertainment and e-commerce all at once.
Live commerce requires integrating video shopping tools, live chat, and shopping cart platforms to ensure a smooth user experience during live streams.
Since live streams mostly happen on social media, the line between live commerce and social commerce is getting increasingly blurry. Social network platforms like Facebook and TikTok now offer Facebook Live and TikTok Live, making it easy for e-commerce businesses to reach viewers through live streams. But it all started with Taobao Live.
The Chinese retail giant Alibaba introduced livestreaming e-commerce with Taobao Live in 2016. They combined an online livestream broadcast with an e-commerce store to let users watch the stream and shop simultaneously.
Since then, live commerce has become a vital part of sales campaigns in China, especially during Singles’ Day, one of the country’s biggest shopping events. In 2020, Taobao Live hit $7.5 billion in transactions within the first 30 minutes of the Singles’ Day presales campaign going live – a 400% jump from the previous year.
Western brands and retailers jumped on the live commerce trend, too. Early adopters included German beauty retailers Douglas, Tommy Hilfiger, and Walmart.
The live-stream shopping market in the U.S. is expected to hit $35 billion by 2024. Meanwhile, the European live commerce market is growing at a rapid CAGR of 26.8%, with luxury and fashion brands using live streaming to offer exclusive previews, product launches, and behind-the-scenes content. The Asia-Pacific region led the live commerce platform market share in 2023, grabbing over 40% of the total revenue.
Now that you’ve seen the numbers, let’s look at how live commerce benefits you and your customers.
Adopting live commerce allows brands, retailers, and e-commerce companies to gain a competitive edge. Here’s how:
Live shopping events are entertaining and interactive, so your customers stick around longer. The longer they watch, the faster you can move them from being aware of your product to buying it. Use time-limited tactics like exclusive discounts or one-time coupons, which can push customers to impulse buying.
Some companies using live commerce have seen conversion rates up to ten times higher than regular online shopping.
Brands adding live commerce to their omnichannel strategy can quickly grab the attention of Millennials and Gen Z. These younger shoppers love innovative, interactive shopping formats—especially when they get advice or see products from trusted influencers.
Plus, live streaming brings a sense of community, where they can watch, comment, and shop together in real time. These factors can help your brand stand out and attract new customers.
Live video shopping lets your customers see more than just a product—they get the story behind it, live demos, and even testimonials from other buyers. They can also ask questions, making it a two-way conversation that builds trust and keeps them returning.
Livestreams are a goldmine for audience insights – you can learn a lot from your customers’ comments, reactions, and questions. Plus, you can answer questions on the spot, helping them feel more confident about their purchases.
Live streams make sense when you want to:
Live commerce isn’t just a win for brands; it benefits customers, too! Here’s how:
Live video commerce combines the convenience of online shopping with the human interaction you get in a brick-and-mortar store. This blend of entertainment and convenience makes shopping less transactional and more enjoyable.
Some e-commerce retailers also integrate buying options within live streams to make it easy for customers to complete purchases.
Live video shopping hosts can recommend products based on what viewers like. Plus, customers can shape what products the host shows by sharing real-time feedback through polls and surveys.
Live commerce lets customers see and interact with products in real time. They can’t touch the products, but they can still check out their size, see them from different angles, and learn about their features, which creates a real-life sensory shopping experience.
Live streaming commerce is perfect for customers who love time-limited deals, exclusive discounts, and early access to new products. In fact, a 2023 survey shows that 32% of Gen Z consumers consider exclusive discounts one of the main advantages of live shopping.
Now that you know what’s in it for you and your customers, let’s look at different types of live commerce.
E-commerce marketers use four types of live commerce, including:
Online marketplaces like Alibaba, eBay, and Amazon integrate live video shopping into their e-commerce platforms by making it part of their marketplace experience. This integration makes it easy for sellers to reach more customers and showcase their products.
For example, Amazon Live Commerce lets sellers and influencers host live streams to show off product features. The purchase options right next to the video make shopping easier for customers.
B2C e-commerce brands, especially in beauty and skin care, use live product demos to show customers how to use products and cross-sell related items. These tutorials add value to the viewer’s time by sharing valuable tips and tricks.
Live events and FAQs are another way businesses use live streaming commerce to spread the word about their products and build awareness. These video broadcasts let brands answer customer questions directly, which helps boost brand recall. Businesses can also use live events to launch new products and offer training sessions or workshops.
Live auctions are a popular live commerce format in which viewers can participate in real-time bidding while enjoying the convenience of online shopping. Hosts showcase products during a live stream, and customers can ask questions before bidding.
Let’s look at real-life examples of brands taking live commerce to the next level.
The popular American luxury department store chain has a dedicated live shopping channel to host shopping events like Spring beauty trends and dressing for special occasions.
Source: Nordstrom
Using a dynamic format like live video shopping allows Nordstrom to offer customers an interactive experience and allow them to shop for products at the same time.
The South Korean appliance and consumer electronics company uses live commerce apps to deliver live and recorded shopping experiences.
Source: Samsung
Their live shopping platform keeps you in the loop with upcoming live stream schedules, exclusive events, and great deals. Plus, you can chat with the host through a chat bar—just like talking to a shopkeeper in a physical store.
This American cosmetics retailer hosts virtual events where skin specialists share tips, tricks, and product recommendations with the audience.
Source: Kiehl’s
Having skin experts host their live streams helps build trust with their audience. Plus, each stream highlights featured products with discounts, making it perfect for customers to make impulse purchases.
Live commerce uses live streaming apps to offer real-time interactive shopping, while social commerce involves selling directly on social media platforms without live interaction.
Live commerce relies on live video streams to let customers interact with hosts and influencers, ask questions, and make purchases. The real-time connection is vital: it gets viewers involved, helps them learn about product benefits, and addresses doubts instantly.
This kind of interaction builds trust between the brand and the customer. Live commerce boosts conversion rates with flash sales, exclusive discounts, and limited-time offers.
Social commerce uses ads, posts, or in-app stores on social media to promote and sell products. It builds trust through reviews and user-generated content. What sets social commerce apart from live commerce is its ability to create a virtual word-of-mouth effect, where users share their experiences and recommend products to their network.
|
Live commerce |
Social commerce |
|
|
Target audience |
Customers seeking interactive, personalized shopping experiences |
Customers looking for convenient, casual shopping experiences |
|
Interaction |
Real-time interaction between customers and hosts |
Lacks interactions, transactions happen via posts or ads |
|
Engagement |
High, due to live Q&A, demos, and urgency |
Moderate, based on likes, comments, and shares |
|
Urgency factor |
Creates urgency with time-sensitive deals and limited product availability |
Lacks time-bound urgency |
|
Best for |
Beauty, fashion, electronics, and luxury products that need demos and real-time interaction |
Lifestyle, home decor, and everyday products that require customer reviews and recommendations |
Now, let’s examine how to run a live commerce campaign and the mistakes you should avoid.
Setting up a livestream campaign takes multiple steps – from picking the right platform and teaming up with influencers to creating a memorable customer experience. Here’s how you can nail every step.
Start by figuring out how your livestream sessions can deliver real value to your customers. You’ll need to understand what your customers want and how they think.
For example, if influencer promotions or targeted social media ads on Facebook or Instagram have worked well for you before, promoting products on social media live streams might be the way to go.
On the other hand, if your goal is to make your live sessions more informative, consider adding them directly to your product pages (like Kiehl’s does). You can also use free live commerce apps to get started.
Live commerce might be a new sales channel, but going after an entirely new audience might not give you the best returns. Stick to the customer segments you sell to and maximize sales there. For example, younger generations are more likely to buy from live streams, but don’t chase them if they’re not your primary target audience.
Live e-commerce is about being honest about your product’s pros and cons. Think of it as your chance to do a direct-to-camera sales pitch, except it’s fun and engaging. To stand out, add interviews or informative, non-sales content to keep it interesting. And don’t forget to bring in online celebrities or influencers to host your live videos.
Live commerce won’t work its magic without strong e-commerce capabilities. Once customers are interested in your product, you must make buying easy. Consider upgrading your e-commerce setup with a point-of-sale system, progressive web app (PWA) technology, and reliable data storage. These upgrades will help you transform your e-commerce success.
Don’t forget to engage your viewers with exclusive discounts, secret deals, or even free products during your live sessions. They might even spread the word and bring in new viewers.
Also, greet returning customers at the start of your livestream – it shows you care, and people love being remembered. Consider creating a membership system with loyalty levels to build long-term relationships. After all, people buy from people they trust.
Your customers won’t always know about your upcoming live commerce session, so promoting it well in advance is a good idea. Sweeten the deal with giveaways to get them to join. Also, try multistreaming software to push your video on different social platforms to reach more people.
Let’s combat some of the biggest myths around live commerce.
The live commerce landscape continues to evolve, and staying ahead of these trends will help you maximize your campaigns:
Live commerce might be the perfect strategy this year if you’re struggling to create urgency, boost engagement, or build customer trust. Live video commerce lets you connect with customers in real time and makes shopping fun for them.
You can increase conversions with discounts, freebies, and limited-time deals while easily cross-selling complementary products. Plus, it’s a great way to learn about your customers’ concerns as they ask questions and share feedback.
Thinking about hosting influencers in your live sessions? Learn how influencer marketing works and how to get started.
Edited by Monishka Agrawal
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