Live streaming ecommerce is a way to digitally replicate the shopping experience at a physical store, just as the population has had to get used to social contact via Zoom. Several social platforms, like Snapchat and TikTok, were already experimenting with sales possibilities through shopable contents and videos. It is a trend that is currently reaping great success in China – and soon we could be able to see live streaming ecommerce used by brands and sellers nearer to us.

The basis for live streaming ecommerce is the same: videos to demonstrate a product and broadcast live over a platform, social network, or website.

— China is leading E-commerce live streaming

Online shopping in China is an increasingly social experience with popular celebrities livestreaming their shopping trips.
The livestream format involves an influencer or KOL, often a big star, demonstrating a product and responding to questions from a digital audience.
Livestreams take place in real-time, normally on a smartphone, and are proving a highly effective way of marrying the offline shopping experience with online purchasing.The results are impressive.Take the example of Li Jiaqi, otherwise known as “Lipstick Brother”, one of China’s top livestream influencers who regularly attracts several million viewers and is renowned for selling products worth hundreds of thousands of dollars in one session.

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China is the undisputed world leader in combining livestreaming with online shopping. By the end of 2020, China is expected to have 524 million online livestreaming users. This means 40 percent of Chinese people and 62 percent of the country’s internet users will be livestreamers. The total scale of China’s livestreaming eCommerce industry reached RMB 433.8 billion in 2019 and is expected to double by the end of 2020.

— Advantages to live stream on E-commerce

  • It improves the buying experience and sales conversion rate.
  • It increases the amount of time the user spends on the page.
  • It increases the average amount spent per purchase.
  • It attracts new consumers with valuable content that answers questions.
  • It is taken into account by Google when determining search positioning.
  • It provides better click ratios and the content is shared more times.
96%

of the people have watched video to learn more about a product

85%

of business use video as marketing tool

87%

of marketers say video increases the traffics of their website

85%

of video marketers says video directly help increase sales

— Live-streaming e-commerce in the current context

With many countries in a gradual de-escalation and an uncertain situation regarding the opening of physical stores, e-commerces are still the buying preference for many users. Tactics such as hyper-personalization or augmented reality seek to replicate the physical shopping experience in the digital environment and, in the current situation, the concept of live-streaming e-commerce works as a very effective digital showcase. Also, live connections are often led by influencers who offer special discounts to their followers.

Western platforms are taking steps to reinforce the trend. For example, Amazon already produces this type of broadcast on Amazon Live, featuring a myriad of channels dedicated to a wide variety of products and sectors. Also, YouTube is developing the integration of links in videos with “Products in this video” and Facebook & Instagram will have the feature of adding purchase links to live connections ready in the summer.

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From an advertising point of view, live-streaming e-commerce is a great opportunity to attract online sales, as these broadcasts are focused on generating expectation around a product and on encouraging engagement through the users’ active involvement. Therefore, brands must promote the awareness of these advertising events to attract the greatest number of participants and, once the broadcast is done, ensure the video reaches new related audiences.