Livestream Shopping on e-commerce platforms is one of the hottest retail trends nowadays. In which brands sell their products to online customers in real-time.
China is already ahead of us when it comes to online shopping. With a tech-savvy market, home to around 1 billion internet users, China has been the world leader in the digital consumer market for many years. As a result, live streaming e-commerce is a popular way to promote and sell merchandise through influencer streams. Livestream is hosted by Viya who is known as the “streaming queen” of China. It is only a part of Taobao’s “Singles Day 2019” sales event but has attracted more than 43 million customers. By 2022, Livestream Shopping expects to reach $423 billion in revenue in China.
According to Wharton Professor of Marketing Thomas S. Robertson and academic director of the Jay H. Baker Center for Retail, “Place shopping is rapidly becoming a medium of commerce of choice.
In an article he wrote for the Harvard Business Review, titled “Selling on TikTok and Taobao,” Robertson examines the rise of Livestream commerce and offers guidance for companies looking to catch on. He shared some insights from the article and explained why online commerce is a challenge for both retailers and social media platforms that rely on running events.
What is Livestream Shopping? Why has it become so popular in e-commerce?
What is Livestream Shopping?
The easiest way to understand Livestream shopping is to think of it as another way of using social media platforms. Instead of just liking a post or following your favorite influencer, customers can make purchases in real time in the form of a live product display video where customers can ask questions related to products and make purchases. A Livestream Shopping session is usually hosted by an influencer, celebrity, or company employee. It is someone who demonstrates the quality of the product and answers user questions. During the live stream, customers can interact with the live streamer, make a variety of product-related inquiries and questions, and directly buy what they like.
Why is it so popular to Livestream Shopping on e-commerce platforms?
Due to poor user experience, engagement rates through traditional e-commerce payments drop. Developing customer relationships, or at least making them feel connected to the brand, is no longer a given, it needs to be done.
Brands and businesses are always trying to improve their relationship with their target customers by keeping in touch with regular contact with them. In this digital age, the Livestream feature is added to the e-commerce platform and has become a popular and effective way to stay connected with customers. Livestream allows businesses to get instant feedback from their followers while going live.
Live streaming is no longer limited to personal connections with brands, and people who enjoy interacting with their favorite brands in real-time. For this reason, businesses and entrepreneurs that capitalize on this desire to connect can maximize revenue generation and exposure through live streaming.
Some of the main benefits of Livestream Shopping on an E-commerce platform
Quickly generate large sales
The main purpose of Livestream events is to generate large sales in a given time.
When customers watch the Livestream and find it interesting. They can invite others to join the live stream. What businesses need to do now is to prepare good content, giving viewers great experiences that they will want to tell others. That’s also why it’s important to choose the right streamers for the event, they have to engage people and excite others to buy.
Through these Livestream events, you will be able to showcase your products to thousands or millions of individuals in a short time. At the same time, customers can go through the entire buying process very quickly. As soon as the customer sees the product on the screen, they can reserve it right away without any further confirmation.
If you reach customers on Livestream correctly and know your audience well, you will increase revenue significantly.
With the vast amount of marketing content available online today, your potential customers are constantly faced with new brands, advertisements, and promotions.
So how can marketers retain their customers with a shorter attention span? According to a study conducted by marketers in the US, 78% of eCommerce businesses engage in Livestream shopping as a way to establish a connection with their customers. Live shopping allows customers to interact with your brand in real-time. When done right, shopping in person on an e-commerce platform not only drives engagement and sets your brand apart, but also attracts more website visitors. This strategy improves customer retention while attracting new customers.
Even better, buying in person makes customers more prone to fear missing out. Customers will buy a product while the live shopping event is still happening. Not only product has an offer included, but also they witness other people buying it right in front of their eyes.
Both new and existing customers will retain a sense of familiarity, enthusiasm, and engagement with the brand. A good Livestream shopping experience will help differentiate your brand from the competition. It can retain loyal customers and entice them to come back for more.
Livestream Shopping increases engagement
To successfully create brand awareness, you must first make sure that you get the attention of your target customers. The interactive element of your live stream improves the likelihood that your customers will remember you.
Livestream shopping events are often hosted by influencers or product connoisseurs. Linking your items to influencers can help increase brand awareness and increase customer interest in your business.
Furthermore, having an influencer present during your live shopping event can help your business gain customer popularity and improve brand responsiveness.
Can put less effective products first
Livestream shopping experiences can turn underperforming products into high-performing products. First and foremost, identify the most likely reasons why the item is not selling well. Is it expensive? Is it too difficult to use it? Then you can go through the Livestream to create the necessary purchase motivation.
You can bundle underperforming products in unique bundles that are only accessible during a live eCommerce shopping event. Live shopping events allow you to accelerate the marketing process and increase overall sales. This strategy can deliver results faster than conventional marketing strategies, generate more revenue and free up your storage space. Additionally, underperforming products can rise to the top now that an influencer has endorsed them. Livestream shopping offers a level of fast real-time human connection that conventional online shopping lacks. This is because Livestream shopping produces win-win outcomes for both the seller and the buyer. While customers enjoy the ease of purchasing from around the world, retailers benefit from the opportunity to boost their sales significantly.