{"id":624,"date":"2022-03-03T10:51:33","date_gmt":"2022-03-03T10:51:33","guid":{"rendered":"https:\/\/fuel4media.com\/blog\/?p=624"},"modified":"2022-03-03T10:51:33","modified_gmt":"2022-03-03T10:51:33","slug":"live-commerce-future-of-online-shopping","status":"publish","type":"post","link":"https:\/\/fuel4media.com\/blog\/live-commerce-future-of-online-shopping\/","title":{"rendered":"Live Commerce is the \u2018Future\u2019 of Online Shopping and Here\u2019s Why"},"content":{"rendered":"
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An exciting new trend is taking place in the world of eCommerce – live<\/em>stream commerce (live commerce)<\/em>. It is a new form of online shopping where customers make purchases during live streaming video sessions.<\/span><\/p>\n

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This exciting new way of online shopping is extremely popular in Asia and it\u2019s beginning to make waves in the US as well. In this blog, we\u2019ll explore what live commerce is and why your business needs to implement this new strategy.<\/span><\/p>\n

The Changing Retail Space<\/strong><\/span><\/p>\n

With the pandemic and shifting buyer habits, business as usual<\/em>\u00a0is no longer an option. Retail stores are shutting down rapidly. People are moving to online stores for purchasing. But now, online stores are fusing\u00a0live streaming to lure buyers with in-person experiences.<\/span><\/p>\n

In China, live stream shopping is a $312.5 billion market<\/a>. This is projected to grow into a $770.70 billion market by 2023. The U.S. livestream shopping market reached $11 billion<\/a> by the end of 2021 and is expected to reach $25 billion by 2023. These numbers speak for themselves.<\/span><\/p>\n

The convergence of video streaming and online retail is making waves in the eCommerce space. Live commerce helps improve buyer engagement, closes the gap between customers and products, and even increases product sales.<\/span><\/p>\n

What exactly is Live Commerce?<\/strong><\/span><\/p>\n

Live commerce, simply explained, is a real-time online event where customers get a chance to interact with brands or their influencers. They can engage with other customers, ask questions, and interact with the brand in real-time before they buy the product.\u00a0<\/span><\/p>\n

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Right now, fashion retailers and beauty brands are the early adopters of livestream shopping. However, grocery and specialty retailers have good chances to make it big in this space.<\/span><\/p>\n

Benefits of Live Commerce<\/strong><\/span><\/p>\n

Sell more products in minutes.<\/strong> With live commerce, businesses are generating sales quicker by exposing their products to thousands of viewers in minutes.\u00a0<\/span><\/p>\n

More engagement with fewer efforts.<\/strong> Live streams are like videos. People are 2x more likely to share videos with their friends than static ads. More people will engage with your videos than static ads so why spend on ads, and not on live streaming videos.<\/span><\/p>\n

Impulse buying results in more sales.<\/strong> Influencers and brands collaborate to promote products. People trust their influencers. When people take part in an exclusive online event and see great products, they don\u2019t want to miss out on the limited-time offers.\u00a0<\/span><\/p>\n

For instance, Kim Kardashian, a billionaire and social media icon, sold more than 15,000 bottles of her perfume in minutes, bye going live.\u00a0<\/span><\/p>\n

Reduces distribution costs.<\/strong> In live commerce, businesses sell products directly to consumers from a warehouse. Through live streaming, businesses receive orders; have a label created, and easily shipto consumers<\/span><\/p>\n

Live Commerce Use Cases<\/strong><\/span><\/p>\n

The live commerce model has been a major success in China. Alibaba’s Taobao Live has a large chunk of the market share. ByteDance, the parent firm of TikTok, owns Douyin \u2014 a short-video platform with eCommerce integrations to make direct purchases. Kuaishou is the other major player in the market.<\/span><\/p>\n

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China\u2019s top influencer, Viya, generated the equivalent of $51 million USD in a single day.<\/span><\/p>\n

Flipkart-owned online fashion portal, Myntra has started testing influencer-led live online shopping on its platform. Myntra is one of the first major eCommerce platforms in India to experiment with the model.<\/span><\/p>\n

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Myntra has asked influencers to hold live video sessions wherein people can buy fashion, beauty and personal care products by adding them to the cart while the session is underway.<\/span><\/p>\n

Amazon recently launched\u00a0Amazon Live. It is a live-streaming product demos platform where influencers come and showcase products to customers, live. Amazon rival, Walmart, began teaming up with TikTok to host live stream shopping experiences during seasonal events.<\/span><\/p>\n

TalkShopLive is another live streaming shopping platform that has just 2 million users, but generates revenue in billions.<\/span><\/p>\n

Future of Live Commerce<\/strong><\/span><\/p>\n

Live commerce is a type of social commerce, which first took off about five years ago in China. Now, the live commerce market has reached a trillion-dollar market all over the world.<\/span><\/p>\n

Research reveals that\u00a044% of retailers surveyed<\/a>\u00a0will increase their investment in livestream selling in 2022. The future of commerce is video. Some brands like Facebook Shops and Shopify Plus already started integrating live videos within their stores in April 2020.\u00a0<\/span><\/p>\n

Shoe retailer, Aldo, recorded a 308% engagement rate and registered 17,000 page views<\/a>\u00a0on its website after a live shopping event in 2021. Most retailers are seeing more Gen Z shoppers in online live events. Some companies are even seeing an increase in younger buyers to grow by 20%.<\/span><\/p>\n

NTWRK is a mobile app that uses live shows to sell limited-edition products has seen its sales surge by 400% after the pandemic.<\/span><\/p>\n

Top Live Streaming E-Commerce Startups<\/strong><\/span><\/p>\n

Globally, there are 75 live streaming eCommerce companies, and here is the list of the most interesting ones:<\/span><\/p>\n