Live commerce
Live commerce, a relatively new trend in the e-commerce industry, is rapidly gaining popularity. It combines the convenience of online shopping with the interactivity of live video, creating a unique and engaging shopping experience for consumers. But what exactly is live commerce, and how does it work? Let's delve into this exciting new world of online retail.
What is live commerce?
Live commerce is a form of online retail that integrates live video presentations with e-commerce capabilities. Retailers can showcase their products in real time, providing customers with an interactive online shopping experience. Hosts use live streaming platforms to present products, demonstrate their use, and answer questions from viewers as they arise.
While e-commerce relies on static images and text descriptions, live commerce offers a more dynamic and interactive platform. Customers can see products in action and get immediate feedback, which makes informed purchasing decisions much easier.
The origin of live commerce
In 2016, select Chinese e-commerce platforms like Taobao and JD.com began hosting live streaming sessions to sell products. The trend quickly caught on, with consumers appreciating the interactiveness and benefits of live commerce. It has since spread to other parts of the world, with many Western retailers now exploring this new form of online retail.
The growth of live commerce correlates directly with the rising popularity of live streaming and mobile commerce. Almost everyone has a smartphone, and millions of people tune in to online broadcasts daily. Because of these two factors, more consumers are participating in live commerce sessions, further driving up its popularity.
How live commerce works
During a live commerce session, a host presents products on a live video stream. The host demonstrates the products, highlights their features, and answers questions from the audience in real time. Viewers can then purchase the products directly from the live stream without having to leave the platform.
The success of a live commerce session relies heavily on the host's ability to keep viewers interested and create a sense of urgency. This often involves using sales tactics like limited-time offers and flash sales to encourage viewers to purchase a product.
Platforms for live commerce
There are several platforms that support live commerce, ranging from dedicated e-commerce platforms to social media sites. Some of the most popular platforms include Facebook Live, Instagram Live, and YouTube Live. These platforms offer built-in e-commerce features, allowing viewers to make purchases directly from the live stream.
There are also several dedicated live commerce platforms, such as ShopShops and Popshop Live. These platforms are designed specifically for live commerce, offering a range of features to help retailers host successful live commerce sessions.
The benefits of live commerce
Live commerce offers several benefits for both retailers and consumers. For retailers, it provides a new way to draw in customers. It allows them to showcase their products in a dynamic and eye-catching way, which increases both sales and customer engagement.
For consumers, live commerce offers a more captivating and interactive shopping experience. It allows them to see products in action, have their concerns addressed directly, and learn more about what they buy online. Live commerce combines the convenience of online shopping with the benefit of real-time interaction.
Challenges in live commerce
Despite its benefits, live commerce also presents several challenges. For retailers, it requires a significant investment in time and resources. Hosting a live commerce session requires careful planning and preparation, as well as a skilled host who can influence viewers and drive sales.
For consumers, live commerce can be overwhelming. With so many products being presented in a short amount of time, it can be difficult for consumers to make informed purchasing decisions. There is also the risk of impulse buying, as the live nature of the sessions can create a sense of urgency to make a purchase.