What is Live Commerce and Why eCommerce merchants should keep a close eye on this trend?
The rapid growth of Live Commerce is grabbing attention of both online sellers and buyers. China, in fact is ahead of its time and is already living in the future of eCommerce. Live stream shopping is when entertainment meets business.
What is Live Commerce?
Live Streaming + eCommerce = Live Commerce.
We are already familiar with Live streaming, Live reaction videos etc. Live commerce is a phenomenon where buyers can buy products through live interactive video streaming while interacting with the brand, all in real-time. Sounds fascinating, isn’t it?
Live Commerce is by far the most powerful way to engage with your audience, and for the customer, most credible way to know the brand.
Furthermore, based on the types, live commerce can be segmented into live auctions, influencer streaming and live events.
Why would it be a big mistake to ignore Live Commerce?
Every day tens of millions of people watch live streams hosted by their favourite influencers and massive volumes of transactions occur for the products they recommend. Alibaba and Tiktok have created an ecosystem of social buying experiences on their respective platforms Taobao & Douyin.
Live Commerce would drastically transform eCommerce and how online buying is done. We are not far away from the time when Meta releases Reels from where you can buy directly.
As you can see in the graph the numbers are astonishing and the growth is phenomenal.
The key, perhaps surprisingly, isn’t necessarily the shopping. Rather, it’s the entertainment, the fun, the interest, and the engagement that an interesting and passionate influencer brings to a space. And if it happens to be one you care about, and the product happens to interest you, you might just click the buy button.
What impact does Live Commerce make?
Live commerce leads to sales acceleration
Live commerce strategies generate sales quicker by exposing products to thousands of viewers in minutes.
Live commerce encourages impulse buying
People may feel more inclined to buy when they are taking part in an exclusive event and fear they may miss out on the limited-time great offers.
Live commerce promotes better engagement
Video content has higher engagement than other forms of content. People are 2x more likely to share videos with their friends than static ads.
Live commerce builds brand awareness
When consumers see the face behind the brand, or beloved influencers using your products, you can bet they’ll start recognizing your brand more often.
Starting out in live commerce
While live commerce is still an emerging channel with many variables and unknowns, some best practices are emerging, and lessons from e-commerce are proving to be applicable. Brands will need a thoughtful & strategic approach to learning how to use the medium.
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