Livestream Ecommerce: Market and Future Scope

Updated on :July 19, 2024

ABSTRACT: 

Livestream e-commerce or livestream shopping is an e-commerce facility that connects buyers and sellers in real-time through live video streaming, generally via a social media platform. Businesses can display and sell their products to interested customers, chat with them in real time, offer instant discounts, exchange messages, and close deals through live-streaming commerce. 

Livestream ecommerce has been gaining more popularity in China and is spreading quickly to other parts of the world. Small and medium businesses wishing to sell online direct to the customers, make profits quickly, and make an impact digitally are opting for Livestream social commerce. The process of attracting, converting, closing, and retaining customers is easier with Livestream eCommerce. Facebook, Instagram, and YouTube are a few sites tailored to Livestream shopping. Technologies like AI, VR, machine learning, and metaverse are game changers in creating an immersive experience for customers through this facility.

In the future, the livestream ecommerce market will further grow with increasing collaborations between companies, virtual influencers, and e-commerce platforms will grow further to reach a larger set of audience and enhance sales. Although the nonavailability of high-speed internet, insecurity of data, technical glitches, inability to gather global audiences due to time differences, and language barriers are a few challenges of Live Commerce, the market is proving to be beneficial for many.

GoodFirms’ survey “Livestream Ecommerce - Market, and Future Scope” attempts to study the current trends of the live streaming ecommerce market. The survey also aims to gather information about user perception and challenges regarding the adoption of the livestream shopping format. It tries to explore how live streaming strategies are turning out to be a game-changer for businesses, how shoppers are shifting towards buying via livestream ecommerce, the importance of interactive and engaging online shopping, the transformation of ecommerce, and the key trends along with the future scope.

 

Introduction

The growing inclination of consumers toward video content and the rising trend of online shopping is leading to a considerable increase in the number of consumers opting for livestream shopping. The facility of shopping from anywhere with utmost transparency stands as the driving force for the growth of this facility. The shift towards online shopping post-pandemic has transformed the market of live-streaming shopping. More and more international markets are adopting this facility. Shoppers from all over the world can shop and interact with the seller live, making a purchase instantly. For sellers - this is proving to be a profitable strategy. All types of sellers - large, medium, small, startups, or even individuals, local sellers can take advantage of livestream ecommerce to connect with buyers, sell, and make a profit quickly.

The introduction of technologies like AI and AR/VR helps to enhance shopping experiences and consumer engagement. 

Several trends like influencer marketing and higher use of social media platforms can be game changers for businesses that are in the initial phases of implementing live streaming ecommerce. With omnichannel live streaming, one-to-one live video, or virtual reality shopping with live Q&A or chat discussions, livestream shopping is set to grow multifold with other new-generation trends.

Although live shopping is turning out to be a transformational force for ecommerce in the future, there are some challenges that can prove to be obstacles to the growth of the industry. 

Overview of LiveStream Ecommerce

The e-commerce industry has shown consistent growth from the time of its advent. There are 

no signs that the sector will slow down in the near future. The rise of live shopping marks the emergence of a new form of ecommerce that helps in higher engagement and conversion rates with total transparency Facebook Live, YouTube Live, Instagram Live, Amazon Live, and direct apps or websites are a few options adopted by both buyers and sellers to conduct and participate in livestream ecommerce.

What is Livestream Ecommerce or Live Commerce?

Livestream e-commerce or live commerce is an act of promoting and selling a product in real-time, with live-streamed videos with the help of a host, usually an influencer generating active interaction between the buyer and seller in real-time. Sellers of fashion products, beauty & cosmetics, jewelry, electronics, home decor, furnishings, food, clothing, accessories, etc are those primarily involved in live selling. Livestream ecommerce for women's clothing is catching as a big rage these days.

Livestream ecommerce provides a modern and hybrid shopping experience to consumers. Sellers can market and sell goods and services on an online platform with interactive sessions. 

Live shopping is generally conducted on social media platforms or dedicated live stream ecommerce platforms. The Covid-19 pandemic led to a sharp spike in the live-stream shopping trend. These shopping events facilitate businesses to demonstrate their products, and consumers get an opportunity to ask questions about the products, interact with the seller instantly, and make a purchase decision

Market Size 

The global live-streaming Ecommerce market size was valued at USD 1350.687 billion in the year 2021. With a CAGR of 11.28%, the market size is estimated to be valued at USD 2564. 87 billion by the year 2028. (1)

Asia Pacific dominates the live ecommerce market. Specifically, China has seen unprecedented growth in the market. Factors like the rise in the number of internet users and the growing significance of online shopping are major contributors to the growth of the live shopping segment.

Survey and Data Analysis

GoodFirms’ survey titled “Livestream Ecommerce: Market and Future Scope,” conducted in July 2023, gives an idea about the growth of live streaming ecommerce, the benefits businesses can leverage with the implementation of live shopping, challenges faced while incorporating live shopping in their campaign, and the trends of the industry. The survey collated the collective knowledge of businesses and entrepreneurs, and we greatly appreciate their input on livestream ecommerce.

The survey queried 671 businesses, of which 46.1% of respondents were startups, and 30.5% were small businesses. Around 15,4% of the survey participants were running medium-scale businesses, whereas 8% were running large-scale businesses.

Around 56.2% of surveyed businesses have tried selling products using live-streaming Ecommerce.

survey selling products via social live-streaming ecommerc

Nearly 56.2% of the surveyed businesses have experienced increased sales by using live-streaming ecommerce. The numbers can rise in the future owing to the several benefits it offers to businesses.

“The reason people are willing to spend hours consuming live streaming e-commerce content is because of the personalized and engaging nature of the platform. Unlike traditional e-commerce, where products are static and descriptions limited, live streams allow viewers to see how products work and how they can benefit from them,” says Dave Fonvielle, Founder of OnlineSuccessGenie.

However, the number of businesses that are yet to adopt live-streaming ecommerce for their businesses is also high. As the live shopping strategy is still in its infancy, around 43.8% of surveyed businesses are still in the initial stages of implementing live-streaming ecommerce for their businesses.

Formats of Live Stream Shopping

Live stream shopping is gaining popularity globally. Brands can leverage the benefits of live-stream shopping by opting for the formats that are suitable for their products. Every format of live shopping has its own pros and cons. Let us take a look at the various formats.

Product Launches

Live streaming a product launch is a beneficial format for businesses since it helps them create a buzz around their products. Planning ahead a live product launch and promoting that live is a great strategy for making potential customers excited about the product to be launched.  

Behind-the-Scene Live Video

Behind-the-scenes videos can be live-streamed to offer a closer look at the functioning of teams to the consumers. These videos enhance the credibility of the brand and increase user engagement. Live streaming the processes on a normal day at the company is a useful tool to showcase the efforts behind the making of a particular product.

Interviews and Q&A Sessions

Q&A sessions and interviews can be live-streamed to connect to the audiences. These Q&A sessions, when streamed live, can create a sense of authenticity for the users. Live-streamed interviews give a closer and better idea about the product that is being promoted.

Influencer Marketing

Influencer marketing involves the collaboration of brands with social media influencers who are roped in for the promotion of the products. These types of sessions are of great help to widen the brand reach and also incorporate a sense of trust for the products as they are promoted by their trusted celebrities.

survey on presence of influencer in social livestream ecommerce helps build-trust

One-on-one or One-to-Many

One-on-one video shopping provides customers access to make a video call with a sales representative. This strategy enables customers to have real-time access to customer support and an interactive shopping experience.

One-to-many shopping involves the retail team of a business displaying its products in front of a large audience through a fixed livestream event.

Benefits of LiveStream Ecommerce

China is considered the country that introduced livestream ecommerce via social media platforms to the world. The rise in the adoption of ecommerce is the result of the benefits that businesses can leverage by incorporating live shopping in their marketing campaigns. As discussed above, there are numerous benefits for both the buyers and the sellers using this facility. Here, we have analyzed the data that we collected through a survey;

Benefits for Sellers

benefits of livestream ecommerce for sellers

Increased Sales

Around 75% of the participants believe that live shopping can increase their sales. Live streaming ecommerce is an engaging medium to sell products direct to the customers (D2C). While most of the live ecommerce events are conducted on social media platforms, businesses have an opportunity to increase their reach.

Leveraging the existing follower base of the brand, along with reaching out to a newer audience, can be easily done through live streaming the ecommerce videos. A wider reach, in return, can help a brand increase its sales. 

“To stay competitive and expand customer reach, embracing live-streaming e-commerce is essential. , says Charlie Wright, Operations Director at Epos Now.

Increased Customer Engagement

Live streaming ecommerce can increase customer engagement for their businesses, said 75% of the survey respondents.Live streaming ecommerce is a great way to engage a brand’s customer base. Features like real-time chat and comments section enable users to ask questions about the products and get satisfactory answers. This leads to higher engagement and improved user experience. 

With a better experience, users are more likely to make informed decisions. User engagement is necessary for increased lead generation and sales.

Increased Brand Awareness

Around 68.8% of businesses said livestream ecommerce helps in increasing brand awareness. Live stream shopping has the potential to expand the reach of a brand beyond borders due to increased online presence. 

quote vaibhav kakkar on live stream shopping

The presence of an influencer or celebrity in a live-stream shopping event is quite likely to increase brand awareness. Planning a live stream ecommerce event and promoting the event a few days before the event is a great way to create hype around the event.

With engaging content and interactive sessions, live-streaming e-commerce can effectively increase the brand awareness of a business. 

Higher Conversion Rates

Around 43.8% of survey respondents think live streaming ecommerce results in higher conversion rates. Livestreaming ecommerce is capable of converting viewers into buyers. Live shopping events have the ability to create a sense of urgency among consumers. Showcasing the authenticity of the product is also a reason for higher conversion rates.

Live shopping events are characterized by special and exclusive offers that create excitement about the event among consumers. All these factors contribute to the higher conversion rates. 

Companies opting for live-stream ecommerce have reported conversion rates approaching 30%, which is nearly ten times higher than conventional e-commerce.(2)

Instant Analytics

Around 37.5% of surveyed sellers asserted that live shopping is helpful for instant analytics. Live shopping enables brands to have access to critical user statistics. These statistics are very important for companies to get insights into the demand for the products, preferences of the customers, and inventory management solutions. 

These analytics play an important role in making data-driven decisions to manage demand and supply of products. Also, instant analytics are useful in making customizing products to meet user requirements, enhancing customer satisfaction.

Enhanced Customer Service

Around 12.5% of surveyed businesses believe that live-streaming e-commerce can be useful in improving customer service.The introduction of live chat on the shopping platform gives an opportunity to brands for collecting valuable data about the customers, which can be used to personalize their buying journey. 

Live interactions during the event create a sense of trust, which helps build great relationships with the customers.

“By providing an interactive platform for shoppers, businesses are able to build relationships with their customers that wouldn’t be possible through traditional online shopping experiences,” says Scott Allen, Co-founder and Licensed Agent of Seniors Life Insurance Finder.

Benefits for Buyers

benefits of livestream ecommerce for buyers

Opportunity to Get Exclusive Deals

Around 66.7% of customers opt for live-streaming ecommerce as they get access to exclusive deals. Live streaming ecommerce events often feature some exclusive deals that can be availed by customers directly from the sellers (DFS) during the live event.

The exclusive discounts that are offered at these events make them more engaging and entertaining. The presence of the deals promotes impulse buying. When consumers can buy products they wish to from the comfort of their homes, the discounts offered make the shopping an even more pleasant experience.

Increased Transparency

52.4% of consumers assert that live-streaming shopping features increased transparency. Live stream shopping events have a host showcasing a product. These events give a 360-degree view of the product, thereby increasing transparency. 

“Live-streaming allows businesses to showcase their products in action. Offering live demonstrations helps potential customers better understand your products, boosting their confidence in making a purchase.”, said Kenneth Garcia, Founder of BibleKeeper.

Unlike ecommerce shopping websites, where the description of the product entails only the material and dimensions of the product, live shopping gives details about the physical attributes of the products. Also, live sessions can include demos of the usage of the product, highlighting the features of the product. The detailed product introduction leads to more informed decisions for the consumers, thus imparting trust.

Easy to Order

42.9% of consumers feel that it is easy to order from a live-stream shopping event. Live-streaming shopping events are characterized by features to order the product directly from the streaming screen. Just by clicking on the button, consumers can reserve their products and make payments. The process does not involve being redirected to several pages and saves a lot of time.

Without any redirections involved in finding the product and putting it in the cart, users have the convenience of buying the product that is being showcased by the host of the event.

Offers Store-like Feeling

42.9% of consumers prefer live shopping as it offers a store-like feeling.The traditional ecommerce shopping experience lacks the feeling that consumers have when physically visiting a brick-and-mortar store. What makes shopping for consumers more exciting is being able to see the product physically and the human conversations when evaluating a product.

Live-stream shopping platform is a blend of both, a physical store that consumers can access from anywhere. It offers the customers an opportunity to directly enquire about the product with their shopping assistant. 

“One thing that I learned while using live streaming for my business is to make it look professional. For example, we always make sure that the lighting is good. For this, we have bought a ring light that holds the phone while we are going live. We also make sure that the background is distraction-free so that the viewers can focus on what we have to say,” hinted Rhett Stubbendeck at LeverageRx.

Better One-to-One Interaction

Better one-to-one interaction is offered in live-streaming ecommerce, said 38.1% of surveyed consumers. Although live-streaming events are more transparent, what makes it more beneficial is the live chat features. Almost all the live shopping platforms offer a live chat feature, where users can raise their doubts while the session is ongoing. 

The event host has access to the queries and can address them in real time. With the number of queries raised by several consumers, the sellers can clear the doubts of the users, ensuring more informed decisions to avoid any cancellations in the future.

More Informative and Engaging

Live-streaming shopping events are more informative and engaging, assert 23.8% of surveyed customers. Live shopping imparts a sensory experience to online shopping. These shopping events replace the non-humanized process of selling products with the human hosts who communicate with the consumers. The conversations that can happen with the hosts make these events more engaging.

Also, the possibility of clearing all the doubts about the products when the sessions are live results in more informative shopping experiences.

Firstly, cross-platform live-streaming offers your brand and customers the advantage of increased engagement — you use the technology to engage customers, and they use it to engage with the product they intend to buy. Secondly, it offers your brand increased reach, which means users across several platforms can now access your live streams and enjoy a relatively new shopping experience. Most importantly, since cross-platform live-streaming increases your marketing reach, it also fuels your sales numbers,” mentioned Tony Angeleri at Lone Wolf Paintball, an online shopping store.

Challenges of Live Streaming Ecommerce

Live streaming ecommerce is a flourishing business aspect. However, it has a set of challenges to overcome. GoodFirms’ survey tries to discuss all these challenges with the survey respondents and also attempts to find solutions to these challenges.

Challenges for Sellers

challenges of livestream ecommerce for sellers

Choosing the Right Platform

70.6% of businesses believe that choosing the right platform is a major challenge when conducting a live shopping event. It is crucial for businesses to choose the right platform for their live-streaming shopping event. Based on the products to be promoted and the target audience for the business, brands need to be clear about the requirements of the platform. 

There are many emerging players to provide the necessary platforms for hosting live-stream ecommerce events. However, brands need to be careful since users prefer only the channels that have the required features. For example, it is great to have technologies like AR/VR implemented for promoting products like furniture or home decor.

Content Creation

Around 64.7% of survey respondents said that content creation is a challenge associated with live shopping. Content is a crucial part of online campaigns. To promote a product online efficiently, content needs to be appropriate. Live stream shopping events are no exception to this requirement. To make live shopping events successful, businesses need to work on creating unique and engaging content. 

Although live shopping events must flow organically to make them look more authentic, the content present on the screen goes in synchronization. The consistency between the products showcased by the influencer and the products that appear on the screen for ordering is in flow. 

Time Zone Differences

41.2% of participants pointed out time zone differences to be a challenge for them.The time of live streaming ecommerce events matters for their success. The time when a majority of the potential customers are present online is the best for conducting a successful live shopping event.

However, international brands have their target audience often spread across several countries with diverse time zones. The time zone differences amongst these countries is a major barrier for these businesses to address their target audience at once. Businesses must, therefore, be considerate of a time when they can target a major portion of their potential customers.

Technological Challenges

Technological challenges are the biggest barriers for about 35.5% of sellers.Live streaming ecommerce solutions still in its infancy, and most of the live streaming apps have some features lacking for their perfect functioning. When broadcasting live, the quality of the audio and video are of utmost importance to retain the viewership.

“Having a backup plan in case of technical difficulties is critical,” says Ilia Mundut, Founder & CEO of HeftyBerry.

Uninterrupted internet connections to avoid any lags in the broadcast also help maintain the viewership count till the end. Along with the connectivity, businesses also need to ensure there are software crashes or that the software being used has all the features necessary for an immersive live shopping event. 

Promotional Challenges

Around 35.3% of surveyed sellers said they face promotional challenges when conducting live-streaming e-commerce events. The success of a live-stream shopping event lies in the curiosity of the viewers. To leverage the maximum benefits of the live shopping event, brands need to be sure to promote the event well in advance.

Although brands with an existing consumer base have the advantage of having a large number of followers, smaller businesses have to invest in promoting the event to gain consumer viewership. Promotional challenges are one of the main reasons for small businesses hesitating to opt for live-streaming e-commerce.

Copyright Challenges

Around 35.3% of businesses consider copyright challenges a crucial factor when implementing live-streaming ecommerce. Implementing live-streaming shopping for a business might not require much effort. However, there are legal implications that need to be taken into consideration.

Before selling a product online, businesses must be sure about the required licenses. Also, the permissions and copyrights for the tools being used in the event, and the audio or images being used while live streaming must all be in place. 

“Emphasizing authenticity and engagement during live-streaming sessions are crucial,” clarified Chris Stott, Founder of Seven Marketing.

Violation of any kind of laws may lead to proper action against the brands.(3)

Stock Management

29.4% of businesses find stock management challenging when using live-streaming ecommerce. Live shopping events have the potential to lead to a lot of activity for a business. This might be either way. There might be a generation of a higher number of sales in a short period of time, which might lead to concerns regarding order fulfillment.

Also, there might be a lack of order which is a risk in case the shelf life of the products is less. In either case, businesses are in trouble. It is, therefore, important that businesses consider the potential results and have a proper plan for stock management to avoid any complications.

Communication Barriers

Around 29.4% of businesses find communication barriers challenging when hosting live shopping events. Live stream shopping events are all about interactions between the host and the consumers. The conversion rate of these events depends on the impactful interactions between the seller and the consumer. 

“Keep a close eye on analytics to track engagement levels, conversion rates, and customer feedback. Use this data to refine your live-streaming strategy and improve future sessions,” says Olivia, at Tabrick.

However, there might be communication barriers for international brands, where the target audience is present globally and where there are language and cultural differences. When collaborating with influencers, businesses must keep in mind the preferred language and the cultural differences of the target audience for optimum benefits of the event.

Integration of Payment Gateways

Integration of payment gateways is a hurdle for 29.4% of surveyed businesses when adopting live-streaming ecommerce. Most live-streaming shopping applications are characterized by the option to buy products right when the live-stream event is being hosted. 

When users click on the products to buy, it is necessary that the payment options they prefer are available for them. The absence of required payment options may lead to a negative experience for the consumer. A research states that around 85% of consumers are more likely to terminate shopping if they do not find their preferred payment method during checkout.(4)

Considering payment gateways and proper integrations are crucial factors for driving conversions for the business.

Challenges for Buyers

challenges of livestream ecommerce for buyers

Technical Glitches that Stop the Streaming

Around 71.4% of consumers find technical glitches that stop the streaming a challenge when shopping through a live event. Live streaming shopping events are more immersive when compared to traditional ecommerce websites. However, the streaming of these events is stopped due to technical glitches.

Such disruptions in the live shopping events end up having a negative impact on the buyer, discouraging the purchasing decision. Also, the quality of the video might also reduce the engagement of the consumers. 

Businesses must, thus, ensure proper streaming of the event to avoid any technical glitches.

Disruption in Internet Connection

66.7% of survey participants said that disruption in the internet connection is a challenge when shopping from a live-streaming e-commerce session. Internet connectivity plays a crucial role for ecommerce businesses. Live streaming ecommerce also relies on internet connectivity for flawless completion of the events.

In developing countries, where internet connectivity and its quality are uncertain, disruption in the internet connection may lead to termination of the streaming of the event.

Lack of Adequate Interaction

Around 57.1% of surveyees mentioned lack of adequate interaction as a problem with live streaming ecommerce. Live streaming ecommerce sessions are often curated to address a major section of the audience to promote products by business. Although live streaming shopping platforms provide live chat options for consumers to interact with the hosts, there is a high chance that the messages go unnoticed owing to the high number of participants of the event.

survey on video shopping events involve unaddressed queries

GoodFirms’ survey also reveals that 28.6% of consumers believe that their queries remain unaddressed during live shopping events. 

However, there is an emerging trend of one-to-one live shopping which can address the issues of inadequate interaction in live shopping events.

Missing Details of Shipping and Delivery Charges

The missing information on shipping and delivery charges is a problem for 52.4% of the consumers of live streaming ecommerce. While live-streaming ecommerce platforms allow users to click on the buying links from the live-streaming screen itself, they often miss out on the important information regarding the ordered products.

When ordering from traditional ecommerce websites, the product page displays the details on shipping location, expected time of delivery, and delivery charges. However, these details are sometimes not available when shopping from live-streaming ecommerce sessions. Businesses need to make sure to provide all these details to the consumer before they check out.

Limited Buying Options

Around 42.9% of the survey respondents said that buying options on live-streaming shopping platforms are limited. Live streaming ecommerce sessions are designed to showcase a limited range of products that the models or host tries and displays for the viewers. This implies a limited number of products being showcased during the entire session.

In contrast, e-commerce websites offer a range of products from which the user can make a choice. 

Problems while Making Payments

33.3% of surveyed consumers believe that problems while making payments can be a challenge when shopping through live-streaming ecommerce sessions. When shopping through the buyable links present on the live streaming screen, payment methods can create a problem for consumers. 

Redirection to several pages and a lengthy process to enter many details can impact the buying decision of the consumer. Live streaming ecommerce platforms must introduce secure and optimized payment processing for user convenience.

Livestream Ecommerce is an emerging retail commerce platform that has seen tremendous growth in recent years. A few current trends in the live-streaming shopping sector show the potential to promote the growth of the industry in the coming years. GoodFirms’ survey highlights some of the current trends in live-streaming ecommerce.

“Offering incentives and gamification through giveaways and contests is a trend seen today to drive more engagement,” says Gordon Frayne, Co-Founder at Aztech, a company that powers the next generation of ecommerce. 

Q & A Sessions

Customer satisfaction is one of the key factors for business growth. Consumers now want to know more about the brands they are using, and when it comes to queries, they want businesses to respond immediately. 

quote by tim clarke on customer satisfaction

90% of consumers believe that it is very important for businesses to respond immediately to customer service queries, which should be within 10 minutes. (5) To address this, businesses can consider live Q&A sessions to acknowledge queries from customers. These sessions are great for answering hot questions straight away, making the customer more loyal to the brand. 

Streaming on Multiple Social Media Platforms

One major objective of live-streaming shopping is to widen the reach of the business. The reach can further be enhanced by streaming the shopping event on multiple platforms at the same time. 

quote by kiran mehra on social live streaming shopping

Omni-channel streaming helps to connect with the target audience on multiple platforms. Broadcasting the live on YouTube, the company’s website, social media handles and even on the influencer’s profile can have a positive impact. Also, making the live stream shareable can be advantageous for increasing the viewership of the event. 

survey on livestream ecommerce conducted on preferred social media platform

The streaming of a retail event on a particular channel can be beneficial if the target audience is present there. GoodFirms’ survey reveals that 47.6% of consumers are more likely to purchase through live sopping if the event is broadcast on their preferred social media platform.

Moreover, the increased use of social media platforms is a hint that businesses can leverage the intersection of live streaming and social media for increased viewership.

One-to-One Shopping

One-to-one shopping is an emerging trend in live-streaming shopping. This facility allows consumers to have an opportunity to be consulted by a dedicated consultant to get more clarity about the products. 

With enhanced attention and dedication, customers feel valued, and their buying journey is personalized. One-to-one video calls over live stream events that are conducted to address unlimited audiences may be time-consuming. However, they should be opted for when the products are high-ticket and require more consideration.

Ricky Allen, Marketing Director of Ever Wallpaper points out, “The trend that we are seeing in live-streaming E-commerce is personalization. This includes creating unique content for each viewer and offering personalized discounts and promotions tailored to their interests.” 

Virtual Reality Shopping

What is lacking in live shopping that is facilitated in a brick-and-mortar environment is that consumers can try on the products. However, the adoption of technologies like AR and VR can provide the opportunity to virtually try the products and have more confidence in their decisions. 

The shopping for products like furniture, decor, and apparel is highly influenced by the availability of virtual reality on shopping platforms. 

Noel Cabral, a marketing expert, mentioned, “The trend to watch for in live streaming is virtual reality shopping and metaverse. With more and more hype swirling around the metaverse, all brands are looking for ways to capitalize on the possibilities of virtual reality buying.”

Brands like IKEA, Gucci, and Sephora are already reaping the benefits of implementing AR in the ecommerce strategy. Other businesses can surely find the solutions that suit their campaigns. (6)

Influencer Collaboration

Hosting a live shopping event can bring ample benefits to a business. And the benefits can be multiplied by collaborating with influencers. With the large number of followers these influencers enjoy, businesses can take advantage of their follower base to widen their reach and improve their viewership numbers. 

survey on consumers buying on the advice of social media live streaming influencers

Around 61.9% of survey respondents asserted that they buy on the advice of social media live-streaming influencers. Collaborating with influencers for hosting live retail events is a growing trend as it comes with several benefits for the business. Recognizing the followers who are aligned with the products being promoted can build trust for the brand and ensure a positive decision from the consumers. Also, influencer collaboration can lead to the promotion of products on their personal social media accounts to increase the consumer base. 

David Cohen, CEO of Badais International, said, “Influencer collaborations* are on the rise, leveraging the reach and credibility of social media influencers to promote products during live streams. Embracing these trends fosters stronger connections with customers and drives sales through interactive and entertaining shopping experiences.”

Future of Live Streaming Ecommerce

Livestreaming Ecommerce is the future of online retail due to the potential it shows for growth. Also, the rise of social media usage and access to the internet are the factors promoting the growth of live shopping. The future of live-streaming ecommerce can see several developments, some of which are discussed here.

survey on live streaming ecommerce future of ecommerce

61.9% of the survey participants of GoodFirms’ survey believed that live-streaming Ecommerce is the future of e-commerce.

Emergence in Other Sectors:

Live streaming Ecommerce, as of now, is mostly associated with a limited number of industries. Apparel and Cosmetics are the leading sectors that have been using live shopping events to showcase their products.

However, the future might see the emergence of live-streaming ecommerce in sectors like healthcare, engineering, and finance, to name a few. (7)

Rise of Micro and Nano Influencers

Influencer marketing has been seeing a new trend, where smaller brands are opting for micro or nano influencers to promote their products. Preferring influencers with a few thousand of dedicated followers can save on the cost required for collaborating with famous personalities having millions of followers.

Moreover, the engagement rate of micro-influencers is higher than big influencers, which has led to 80% of marketers working with micro-influencers.(8)

A similar trend is expected to be witnessed in the live-streaming ecommerce market as well.

Integration with Metaverse

Integration of technologies like AR and VR with live-streaming ecommerce is already happening with many live-streaming platforms. This trend is set to rise even further as the significance of virtual try-ons rises. 

According to Statista, the metaverse e-commerce market is expected to account for USD 201.8 billion by the year 2030.(9)

The immersive effect of AR/VR technologies is already evident, the advancement in the technology will further enhance user experience. With the top brands adopting the metaverse technology, the future of live shopping has the potential to incorporate the benefits of AR/VR technologies.

Higher Importance to User Data Security

The rise in the use of the Internet has also led to higher risks to user data security. Around 57.1% of the surveyees think that live-streaming shopping can pose a threat to user data security.

survey on live streaming shopping events data security threats

It is, therefore, necessary for businesses to introduce more secure options for ecommerce for consumers. 

The introduction of technologies like Blockchain can be a great initiative for improving the data security of the users. 

The decentralized ledger that Blockchain technology introduces can make the payment processes for users more transparent and secure. Cryptocurrency transactions can be faster compared to the transitional payment methods making the payment process smooth.

Introduction of AI

Conducting live streaming ecommerce sessions for a global audience becomes challenging owing to the time zone differences. To overcome this problem, some Chinese companies have started leveraging generative AI to create virtual hosts to conduct sessions around the clock.(10)

Moreover, the virtual hosts are also positively impacting the cost factor for collaborating with influencers. The trend of using generative AI may see a further rise in the global market. 

Not only generative AI, but artificial intelligence is also an asset for promoting products through recommendations by harnessing its potential. The use of artificial intelligence can be effectively done to engage users and promote repetitive purchases from consumers.

Key Findings

  • Livestream shopping is a strategy to market and sell goods on an online platform with interactive sessions.
  • The global live-streaming Ecommerce market size was valued at USD 1350.687 billion in the year 2021.
  • Around 56.2% of the surveyed businesses are already using live-streaming ecommerce.
  • The presence of influencers in livestream Ecommerce helps build trust, said 47.6% of survey participants
  • Increased sales and increased customer engagement is a major benefit for 75% of the surveyed businesses.
  • 66.7% of surveyed consumers find live-streaming shopping beneficial as they can get access to exclusive deals
  • Choosing the right platform is challenging for 70.6% of businesses to implement live-streaming ecommerce
  • For 71.4% of consumers, technical glitches are challenging when attending a live-stream shopping event.
  • 90% of consumers believe that it is very important for businesses to respond immediately to customer service queries, which should be within 10 minutes. 
  • 47.6% of consumers are more likely to purchase through live video shopping if the event is broadcast on their preferred social media platform
  • 61.9% of the survey participants of GoodFirms’ survey believed that live-streaming Ecommerce is the future of e-commerce.
  • According to Statista, the metaverse e-commerce market is expected to account for USD 201.8 billion by the year 2030.

Conclusion

Livestream ecommerce came to popularity during the pandemic period and is poised to be the next big wave in the retail sector. With the intersection of online and physical shopping experiences, live-streaming shopping provides a unique option for buyers and consumers alike. Not only for big players but even for small, independent sellers, this facility seems to be like a fortune-win.

With a number of benefits for both consumers and businesses, livestream ecommerce has a future to grow exponentially. Walmart’s latest introduction of its Shoppable Simulcast, which enables sellers to live stream their shopping broadcasts using Facebook Live, is proof of how brands are welcoming live-streaming ecommerce. The growth of the sector can be predicted from the higher rate of the adoption of the strategy around the globe. Customers are influenced a lot by social media posts, and when sellers directly tie-up with the social media platforms to sell products in real-time, it undoubtedly can be a game changer.

With the adoption of trends like AR/VR and influencer collaboration, businesses can upscale their sales through livestream ecommerce sessions. By strategizing efficiently, they can overcome potential challenges and can see success through real-time video selling. Shopping cannot get better for the buyers.

cta live streaming software

With the tremendous growth in the adoption of live shopping strategy and advancement in technology, this novel concept of selling goods online through live interactions has a bright future in the coming times.

We sincerely thank our Research Partners for their valuable insights.

References

  1. https://www.businessresearchinsights.com/market-reports/live-e-commerce-market-102558 

  2. https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/its-showtime-how-live-commerce-is-transforming-the-shopping-experience 

  3. https://stageten.tv/blog/the-legal-ins-and-outs-of-live-shopping 

  4. https://stripe.com/en-in/newsroom/news/state-of-checkouts-2022#:~:text=Eighty%2Dfive%20percent%20of%20online,payment%20method%20is%20not%20offered 

  5. https://firework.com/blog/why-is-livestream-shopping-popular/ 

  6. https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/its-showtime-how-live-commerce-is-transforming-the-shopping-experience 

  7. https://blog.hubspot.com/marketing/hubspot-blog-social-media-marketing-report?hubs_content=blog.hubspot.com%2Fmarketing%2Finfluencer-platforms&hubs_content-cta=social%20media%20trends%20survey 

  8. https://www.statista.com/outlook/amo/metaverse/metaverse-ecommerce/worldwide 

  9. https://www.scmp.com/tech/big-tech/article/3228659/chinas-live-streaming-e-commerce-market-faces-major-disruption-ai-powered-virtual-hosts-lower-cost

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