Live shopping or livestream commerce is one of the upcoming e-commerce trends, as mentioned in our article ‘E-commerce trends for 2023’. In this publication, we will explore everything you need to know about livestream commerce: how big it is, where it is popular, what platforms you can use, and how it can benefit your business. If you want to take your online sales to the next level and create a loyal fan base for your brand, you don’t want to miss this opportunity. Read on to learn more about live shopping and how you can get started today.
A new way to shop online
Live shopping is a new way of shopping online that combines the excitement of live video with the convenience of e-commerce. Customers can watch live shows from their favorite brands, ask questions, get recommendations, and make purchases on the spot. It is most used for apparel, fashion, beauty products and food. More than half of all internet traffic shopping is sourced from a mobile device, so it’s important for brands to also optimize their shopping experiences for mobile users. Facebook is het most used social network for live commerce worldwide, where TikTok Live is the most used in the UK. And clothing and fashion are most purchased products from this new form of shopping.
The rise of live shopping: a global phenomenon
China has the most live commerce buyers. Live commerce has evolved rapidly, taking less than five years to develop into an innovative sales channel with an estimated penetration of 10%. It is generating more than $423 billion in revenue over 2022 and about 50,000 livestreams attract around 260 million viewers daily. It is also growing fast in the US where about 20% participate in live stream shopping, the age group 18 to 34 have the highest live commerce usage and in the US it generated over $17 billion in sales over 2022. In Europe, 70 percent of customers are interested in this new form of shopping. Although there is currently no official sales data known for Europe, it was estimated to be around $10 billion over 2022 and the trend is rising.
Live shopping examples in the Netherlands
It is still a new phenomenon in the Netherlands, and like Europe, there is no specific data on how much revenue it generated in 2022. We do know that the total e-commerce revenue in 2023 is projected to reach $30.59 billion in the Netherlands, and is a contributing factor to this growth, as more e-commerce brands and customers adopt this trend. Brands like Bol.com started offering sessions for different types of products, such as cosmetics, clothing, household items, and gadgets. Other brands also experiment and innovate with this form of shopping. For instance, Shoeby, a Dutch fashion retailer, created its own live-shopping platform called Shoeby Live Shop TV. The platform lets customers watch live shows where stylists and influencers present new collections and trends, and shop products directly from the app. Another example is KitKat, which partnered with Albert Heijn, a Dutch supermarket chain, to host a live shopping event. KitKat invited customers to participate in a live chocolate tasting session with a chocolatier and purchase exclusive KitKat products online.
Benefits for brands and consumers
But what are the benefits of this new form of shopping for brands and customers? And what are some of the reasons why live shopping is the future of ecommerce:
- Improve customer satisfaction: It makes customers happy. Brands and customers can chat live during the show. Customers can get answers, suggestions, product demos, and opinions from other shoppers. This makes shopping more fun and customized for each customer. Live shopping can also make customers more loyal and likely to come back;
- Boost conversion rates: Live shopping helps brands sell more. Brands can show their products in action and persuade customers better than photos or videos. Customers can see how products work, look, or feel in real situations. They can also get special offers, discounts, or rewards that are only for live shoppers. This can make customers feel the thrill and pressure to buy right away;
- Reduce product returns: Online shopping can be tricky because customers cannot check or feel products before they order them. This can make them unhappy or regretful when they receive their orders. It can help solve this problem by showing products more clearly. Customers can see how products match different people, looks, colors, or styles. They can also get advice on how to use or take care of them well;
- Appealing to different generations: It appeals to different generations of shoppers, especially those who grew up with TV shopping channels. Research shows that more than 50% of US live shoppers are Baby Boomers (born between 1946 – 1964) or Generation X-ers (born between 1965 – 1980). They enjoy watching online videos or influencers as much as Millennials or Gen Z’s do;
- Uses the power of influencer marketing: Influencers play a key role in these type of shopping events by hosting them, promoting them, or endorsing products during them. Influencers have large followings who trust their opinions and recommendations. They can help brands reach new audiences, increase brand awareness, and drive sales. Live streaming is ideal to maximize influencer marketing.
Step-by-step guide to start with live shopping
For live shopping, you need devices with a camera and microphone, such as a smartphone or computer, and a strong internet connection. You’ll also need to choose a platform or app to host your live shopping event, some popular examples include CommentSold, instagram Live (IG) Live Shopping, Facebook (FB) Live Video Shopping Platform, Amazon Live Shopping Events, Channelize.io: Live Stream Shopping Platform and Bambuser Live Commerce Stream Shopping.
You may also want to consider additional equipment such as a tripod or stand for your device, lighting equipment, and props or backdrops to enhance the visual appeal of your stream. Here’s a short step-by-step guide to start with live shopping:
- Set up your streaming studio or leverage a platform;
- Promote your show on social media;
- Upload and update product listings;
- Become an expert on your market;
- Go live and engage with customers;
- Set a consistent schedule.
By following these steps and using the right equipment, you’ll be well on your way to hosting successful live shopping events. Remember to engage with your audience and provide a unique and entertaining experience to keep them coming back for more.
Unique opportunity for brands
In conclusion, live shopping is a rapidly growing market that is expected to reach $500 billion globally by 2023. It presents a unique opportunity for brands to engage with their customers and drive sales. By leveraging platforms and optimizing for mobile users, brands can take advantage of this exciting new sales channel. This innovative way of shopping has taken the world by storm and has become a global phenomenon. The Netherlands is just one example of a country where live shopping has (just) started off, triggered by many successful examples of businesses across the world using this method to engage with customers. The benefits of live shopping are numerous for both brands and customers, including increased engagement and conversion rates. With our step-by-step guide, you can get started with live shopping and take advantage of this exciting new trend in e-commerce.