Live commerce has been a trending topic in online shopping for a while due to its success in the Asian market. With the growth of popularity and sales through live commerce channels, more merchants started to consider this shopping option as the possibility to increase sales. In this regard, we will discuss the concept of live commerce more precisely, how it changes an online shopping experience, and its future in the eCommerce industry.
What is live commerce?
E-commerce live. Tik Tok shop
The concept of livestream commerce implies that an influencer who conducts a livestream or a brand can show products during the broadcast, show their features, and other characteristics. Meanwhile, viewers can buy the displayed product live while watching this broadcast. This shopping experience means that brands and stores can get exposure via video streams and provide an interactive and unique shopping experience. This shopping trend is especially profitable in China, where online retailers created great live-streaming shopping platforms. For instance, Taobao Live managed to sell products during a shopping event with a transaction value of $7.5 billion. As industry experts admit, the primary appeal of live commerce is the idea that viewers-customers are engaged and can interact with a streamer via chat and reactions. More importantly, a customer can see during the livestream a product in a more detailed way and how it looks.
Influence on online shopping
Once big-market brands and platforms recognized the success and potential of live commerce, they managed to adopt this trend for their businesses. In particular, one of the most successful shopping platforms Amazon launched its own live commerce service Amazon Live which incentivizes customers to buy products during live broadcasts by providing real-time interactions with brands. Amazon realizes the entertainment and business value of live commerce. Therefore, the company put a particular emphasis on the opportunity for influencers and brands to sell through this engaging channel.
Amazon Live Deals. Amazon Live
Another example of live commerce contributing to eCommerce evolution is the introduction of live shopping on Instagram. This notion is also crucial because Instagram is one of the biggest social networks and part of the social commerce trend. Live shopping on Instagram is an excellent way to engage customers to buy products from the platform where they follow the influencers and brands that they like. Considering that Instagram appeals to the statistics, which show that 44% of people use Instagram as a shopping platform weekly, launching live commerce services is a profitable business decision to increase the sales and eCommerce capabilities of the platform.
Future of live commerce
Consequently, one may agree that live commerce is the future of eCommerce and social commerce because it offers not only more sales options for the merchants but more interactive and unique shopping experiences for the customers. Livestream shopping is considered to be an engaging and entertaining occurrence while providing a shopping interface. In the future, more and more platforms with streaming options will expand the live commerce functionality to integrate this eCommerce trend. In addition, eCommerce development might evolve to make more stores and platforms compatible with live commerce technologies.