Online shopping became the norm worldwide and saw exponential growth during the lockdown. However, it hasn’t been able to adequately replace the feeling of interpersonal and human interactions we are accustomed to from in-store shopping. To bridge this gap between retailers and consumers, more and more e-commerce brands today are considering the shift to live commerce. As the name suggests, livestream videos are used to promote and sell products to website visitors.
The live commerce format is completely digital and offers an interactive experience for the customer. Many e-commerce websites are using different formats to help visitors have an enriched engagement with their products, such as:
Brands and websites can use celebrities, influencers, micro-influencers or industry experts to promote their products to a larger audience. This method of marketing is more effective for fashion, beauty, home decor and furnishing or jewelry.
Personalised live video shopping:
By offering a one-on-one live video shopping experience, brands can sell more high value products. The store assistant can share product information with prospective buyers and encourage conversions.
Just like the personalized livestream, a store assistant can livestream for a wider audience promoting different products that viewers can buy directly from the video.
From fashion shows to Black Friday sales, streaming these events can help businesses create a sense of community and drive sales.
Now that we’ve learnt how businesses are implementing live commerce, let’s take a look at some of the key statistics on how effective it has been for businesses so far.
While these numbers are compelling enough, here’s a look at some of the benefits that can transform the online shopping experience.
Why can live commerce no longer be ignored:
Creates a phygital experience
Live commerce can help your business recreate the in-store experience in a digital space. Live video experience humanises customer engagement in the digital realm making it more like the in-store experience.
Increases conversion rates and revenue
Adopting live commerce on your website or app can increase interest in the product and cut the time between intent and purchase. This can lead to increased conversion rates, sales, revenue, and profits.
Reduces return rates
Once customers are able to check the fitting, size and learn more about the product they can make a more informed decision. This will reduce product return rates which in turn drives down cost.
Boosts interaction and engagement
By using different video formats you will be able engage better with customers while encouraging them to browse your website for longer. By using a story format for your videos you can also create a shoppertainment experience on your website.
Future outlook for e-commerce
With brands getting on the live commerce bandwagon, it is set to be a leading cause for growth in the e-commerce industry. Here’s the predicted growth of online sales through live commerce in the future across the world.
- The GMV of e-commerce livestreaming in China is expected to surpass 4.9 trillion yuan in 2023
- In the US, e-commerce revenues from live shopping are expected to increase 3x from its 2021 levels and reach 35 billion dollars by 2024.
You can also assess how prepared your business is for a next-gen customer engagement evolution:
To keep up with the changing landscape in customer engagement, live commerce is integral for retail businesses. As the world moves towards more online experiences, live commerce holds the power to humanise customer engagement and boost conversions effectively.