How Live Commerce is Transforming Online Shopping


The COVID-19 pandemic has drastically changed people’s shopping behavior. With the lockdown limiting how purchases were usually made, customers are getting more accustomed to shopping online. They are demanding more and more videos before making a purchase decision. Research shows that live commerce grew by a whopping 76% during COVID-19. As physical shopping became challenging, live streaming commerce helped consumers get closer to the physical shopping experience from the comfort of their homes, thus giving rise to a ‘phygital’ shopping experience.

  • Cisco’s Annual Internet Report shows that by 2022, around 82% of the internet will be used for streaming video!
  • Wyzowl’s State of Video Marketing Survey shows that 84% of surveyed people say that they have been convinced to buy a product after watching a brand’s video.
  • The live streaming market in China is poised to reach $3.137 trillion by 2021. Besides China, video shopping is gaining steam in the US, Asia, and other European markets.
live commerce global market size firework
Live Commerce global market size

Videos are a lively, visual, and more engaging method to interact with an audience. Live commerce takes it a step further. The rise of digitization, affordable mobile data, and smartphones are critical movers in the rapid adoption of live commerce: it’s more effective and complete than traditional online shopping methods.

A live video allows customers to understand the product and how it works through a live demo. Here, the audience gets a feel of a real-life, physical shopping experience with a 360-degree understanding of the product through real-time, unfiltered, and direct engagement.

Let’s find out the benefits of live commerce, brands using live streaming, and ways to get started with video commerce.

What is Live Commerce?

Live commerce is the combination of live streaming and online shopping. Here, customers join a brand’s live stream to interact with the brand and other consumers and make instant purchasing decisions. Some brands engage a celebrity influencer to promote their products on the live stream. Customers see the live demo of the product working and purchase them spontaneously. They can even interact with the brand personnel to know more about their offerings. The visual process of live streaming is more dynamic and keeps the customers’ enthusiasm alive. In contrast, routine online shopping does not retain customers’ attention for long.

With Firework, you can break away from social media platforms to create a fully customizable, highly-immersive live commerce brand experience on your website. In this way, you have complete control and ownership over the audience data to deliver hyper-personalized experiences.


Why Live Commerce?

what is live commerce

Live Commerce is rapidly changing the way people shop online. Across countries like China, live commerce has resulted in increased sales, better user engagement, and advanced business metrics tracking.

  • Korean Fashion Clothing Company LF Corp saw a 30% increase in sales every year (since 2015) using live commerce shopping.
  • Driven by the beauty and fashion industry, India’s live commerce industry will grow to a whopping $4-5 billion by 2025.
  • According to McKinsey, millennials constitute 31% of the US live stream audience, while boomers make up 25% of the chunk.

The live streaming form of online shopping comes with numerous benefits. Let’s see how.

Benefits of Live Commerce for Brands

  • Enhances Customer Engagement
    In regular online shopping, customers may get confused with specific terms, or they can drop out of your website. It could be tough to win back a lost customer. But, with live commerce, you can have the complete attention of your customers. Here, direct customer feedback is possible via reactions and comments and direct interaction between customers and brand representatives. The direct interaction with an actual person is all about humanizing a virtual shopping experience instead of a one-sided need-based purchase experience.

    Also, You can ensure superior customer engagement with interactive streams that allow for direct connection with brands, bringing back the human element to online shopping. With quizzes or giveaways in between, you can retain the audience’s attention and keep them excited. As a result, you have more chances of customers purchasing your product, then and there.

  • Increased Sales
    There are high chances of your product selling well in the market with better engagement. Customers get more time interacting with a brand due to increased attention spans. Unlike time-consuming tasks like reading blogs, they can understand the live working, thereby helping them make better purchase decisions. With this, you can increase your customer base, and many of them will even turn out to be repeat customers.
  • Better Tracking of Marketing Metrics
    In typical online shopping, it becomes challenging to identify the customers who are satisfied with your product and who are not. But, with live streaming, you can see your customer’s body language and facial expressions to understand their satisfaction levels. In this way, you can make out if your marketing tactics are working out well. Also, you can assess data with engagement analytics + live stream analytics to form a real-time understanding of customer impact.
  • Full-funnel engagement
    From acquisition to engagement to conversion to retention, brands can do it all. They can track their entire customer lifecycle, from first impression to consideration to the conversion stage, and adjust their sales-marketing goals.
  • Digital transformation with live commerce
    Live streaming and shoppable videos are the future of online shopping, and brands adopting live commerce align strongly with modern customer needs (specifically Gen Z and millennials).

Live Commerce Examples

Nordstrom: American department store chain Nordstrom is bullish about the success of live streaming as a preferred online shopping mode and has started its own live commerce experience channel.
live commerce example nordstrom


Tommy Hilfiger: Fashion major Tommy Hilfiger leveraged live commerce to great success, managing to attract over 14 million users at a live stream shopping event in China. The brand managed to sell out hoodies in under 2 minutes.

live commerce example tommy hilfiger


Kraft Heinz: CPG leader Kraft Heinz created a live commerce special event for Halloween for the Heinz ketchup brand powered by the Firework platform. The live stream event reported an 18x bump in engagement compared to traditional social media channels and sold out an exclusive product during the 23-minute event.

live commerce example 1 heinz live commerce example 2 heinz


Davidoff Cigars: Swiss luxury brand Davidoff leveraged Firework’s live commerce expertise to simultaneously go live across multiple locations for their tobacco brand, Davidoff Cigars. The brand’s live stream delivered a class-leading 38% engagement rate with a fully interactive, highly immersive viewing experience.

live commerce example davidoff cigars

Germany’s beauty brand Douglas Cosmetics regularly uses live stream videos to promote its products. They experienced a 40% conversion rate by using the tutorial and unboxing videos. India’s Ola electric scooter was launched via live stream in 2021 and attracted more than one lakh orders in the first 24 hours.

Misconceptions About Going Live

While starting with your live commerce journey, you may have many misconceptions. It’s essential to be aware of them to create a better live-streaming campaign for your business.

  • Social media is necessary to go live: Firework helps acquire the right audience to your live stream by reducing dependency on social media platforms.
  • Content creation is tricky: Firework offers managed services to make your live stream campaigns a reality by taking care of every aspect of your live stream. You need to use the already available templates.
  • A live commerce campaign won’t succeed without an influencer: You don’t need influencers to do your live streams. You need subject-matter experts and employees/evangelists to do the live stream and engage with your audience effectively.
  • The video commerce medium is complex: Firework makes going live extremely easy with tech solutions + real-time access to partner success teams helping you go live. With two lines of code, your brand can be ready to go live – Firework makes it that easy.

Live Commerce Best Practices

  1. First, find out the use cases for live commerce. Understand which products and offerings you want to project through the live stream commerce route.
  2. Identify the vendor that best serves the purpose of live streaming. You can select an experienced vendor like Firework for end-to-end content creation and execution.
  3. Make the live stream process natural without too much scripting. In this way, you will sound more authentic while putting forth your brand’s message.
  4. Ensure that you engage the viewer using a storytelling approach. Just explaining the product specifications can make the live stream monotonous and non-engaging.
  5. To attract a maximum audience, you can promote the live commerce stream well beforehand on social media. Creating a teaser video about the live commerce event will build more curiosity.
  6. Don’t pressurize yourself to follow a definite time frame. Be flexible; go on with the stream until you feel that you have covered all aspects of your product.
  7. Incentivize people to attend the live video stream. It could be contests, quizzes, gift hampers, or other giveaways. In this way, you value the customers’ time and make them feel cared for through targeted incentives.
  8. Bringing celebrity guests can increase the popularity of your show. You can even encourage your customers to engage with the guests and make the stream more lively.
  9. End with a catchy call-to-action as to what the customers should do next. It could be to click on a link to buy the product. Also, you can invite the audience to join the next live stream. Many of them can turn out to be your regular customers.
  10. Technical integration is a challenging aspect of live streaming where you need to connect to third-party applications like Shopify and WooCommerce. But, with Firework, you can insert a line of code on your website and start the live stream with ease.

Final Thoughts: Use Live Streaming + Video Shopping to Win More Customers

The future looks bright for live commerce, with more and more people searching for shoppable videos and live streaming shopping experiences. You cannot afford to miss this opportunity to leverage live streaming and stay one step ahead of your competitor’s video strategy. Remember, the authenticity and simplicity of messaging will win you more customers. The more the customers interact with you online, the better the chances of instant purchases.

Try Firework if you are looking for the right platform to build your live streaming video. Contact us to take your live commerce experience to the next level!

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