Livestream ecommerce is a strategy of promoting goods via online videos where the retailers demonstrate the products and answer the audience’s questions. Usually, such streams take place on social media platforms or eCommerce websites.
In the article, we explain what livestream ecommerce is and why it is becoming so popular. We also provide some tips on how to increase sales using live streaming.
Why is livestream ecommerce becoming so popular?
According to McKinsey Digital, the livestream market in China has grown 57 times from 2017 to 2020 and continues to expand. These impressive statistics motivate many business owners to adopt the strategy of livestream ecommerce promotion. Discover why it is so popular and how to use its benefits to boost your sales below.
The sharp rise in livestream ecommerce popularity happened with the start of the Covid-19 pandemic. A lot of consumers couldn’t visit offline shops because of the lockdown, but they wanted to continue buying online. Live streams allowed people to see products dynamically and in the context and let them ask questions about the goods they were interested in, almost as if they were in a physical store.
Livestream ecommerce gained popularity mainly in China and other countries in the Eastern market. McKinsey Digital states that almost 30% of Chinese consumers had already bought something in live streams by March 2020. This format also became popular due to such huge platforms as TikTok and Amazon allowing retailers to sell during the streams. Below we provide the benefits of this type of product promotion.
- It accelerates conversions and increases the rate of customer loyalty. Fit Small Business states that live commerce conversions are up to 10 times higher than in other digital commercial formats. You can engage with viewers, motivate them to comment, ask questions and provide discounts for staying on the stream. All these actions can increase their loyalty to your brand. Moreover, the more users stay in touch with your company — the higher chances that they will buy your brand products.
- It helps improve the brand appeal and attract younger audiences. According to Pew Research Center, about 60% of young adults in the US prefer online streaming to watching TV. Regular live streams can increase people’s brand awareness and give them a better understanding of the products you sell. This fact will make your brand more appealing. Also, you can attract the users that find your stream by accident and, in such a way, increase the number of potential clients.
- You can launch live streams on platforms that are already popular. There are two ways to use this type of product promotion: live stream on your website or popular social media. TikTok, Instagram, Facebook, and other social platforms allow companies to launch live videos, so you can use them to take advantage of live streaming by interacting with your existing online audience.
- It allows companies to show products from different angles. During streams, consumers can see products in context and ask about their specific features. It is especially useful with the development of augmented reality technologies. Shoppers can get an extraordinary experience while watching goods from every side using AR opportunities.
- It lets businesses gain insights into consumer behavior and get word-of-mouth references. Live streams are highly engaging, so users may interact with the sales representative and other consumers. When analyzing their behavior, you can understand their needs and preferences. Also, the viewers may answer each others’ questions, recommend some of your products right during the stream and, in such a way, make other consumers trust your company.
- It helps create a sense of urgency and trigger consumers to buy faster. Some businesses provide discounts that work for a limited time to make people feel that they need to purchase right now. This psychological technique helps companies increase conversions and engage people better. You can also provide some gifts and promo codes during every live stream to motivate people to visit them regularly.
Now you understand why this type of ecommerce is so popular and what benefits it provides. Let’s go further and discover the ways to boost your sales using live streaming.
How to increase sales with live streaming?
According to Livestream, 82% of people prefer watching a company’s live streams rather than its posts on social media. It proves that live streaming is an effective way to engage with consumers. However, to sell your products in such a way, you should know some peculiarities. Read about the actions you should do before starting streaming below.
- Study your audience and define a platform. The choice of social media platform or a website is essential. It influences the number of viewers watching the livestream and their engagement. Analyze your consumers’ behavior to discover the most appealing platform and gain insight into people’s preferences and needs.
- Define a format. Typically, there are three types of live streams: tutorials, behind-the-scenes videos, and direct product demonstrations. When you understand potential clients’ behavior, it will be easier to decide which format to choose. Then think about the sales representative who will interact with the users. You can invite an influencer to host the show and, in such a way, increase consumers’ loyalty.
- Plan interactive activities. Most live streams include such elements as a video stream, the list of the products, the reaction button, and the chat. If you want to hold a stream on your website, make sure that all these features are available. Then, think about how you will interact with the audience. Include discounts, gifts, and quizzes to make people engaged. Also, you can use gamification and provide promo codes for certain actions to increase viewers’ interest during the stream.
- Test live streaming and improve the results. You can launch streams across different channels, study the formats, invite different hosts and track the effectiveness. Make live streams regular so that your audience can get used to them. Use analytics and machine learning to optimize plans of the streams and get real-time suggestions on how to interact with the viewers better. Continue improving to boost your sales.
Congrats, now you know what livestream ecommerce is and why it is important. You understand how to increase sales with live streaming and are ready to use this business strategy within your company.
Last Updated: 22.03.2023