The next wave of shopping? Going live
In 2022, live shopping was estimated to have contributed of $17 billion in sales in 2022. But by 2026, that amount is projected to account for $55 billion in sales. McKinsey predicts that live commerce could account to 20% of all ecommerce within a couple of months.
(And it's true that this isn't QVC or the flimsy 24 hour shop-a-thons.)
What do we think? Live shopping is on the verge of explode. Your brand needs to begin thinking about your plan for live-shopping todaybefore prior to the time that everyone else jumps on the bandwagon--to grow your engagement and boost sales.
However, you can't just start a livestream and hope for revenue to begin rolling into. There's more to hosting successfully a livestream other than demonstrating your product. It requires lots of creative thinking and informal, fun (read that it's not salesy) way of speaking.
In this article
- What exactly is live shopping?
- What's the advantages of live selling?
- The reason you may want to play with a live-streamed shopping campaign
- How to create a live shopping strategy in just 5 steps
- Are you ready to host a live shopping event?
What is the concept behind live-shopping?
Live streaming or live shopping refers to the use of live video to feature your merchandise in real-time, so that customers are enticed to purchase from you.
What are the benefits of live selling?
Offering you the chance to make your mark in the crowd to connecting with your customers live and increasing the sales of your business, shopping live provides a ton of benefits. Here's a look:
Engage your target audience
Livestream shopping lets you have two-way dialogues with your viewers live in real time.
"Live shopping gives retailers the opportunity to create an enjoyable environment in which customers are able to get acquainted with the brand and its products without needing to go to a physical shop," shares Robert Hoffmann as the Manager of Marketing at CashbackHero.
Build your community
Through regularly hosting live events, you can tap into live shopping as not only a reliable way to acquire customers and retention but also community building and gathering customer feedback.
In this regard, you must be sure that your live presentations focus on entertaining and providing the best value, while also offering exclusive discounts to make the viewers feel like a member of something truly special.
Sales increase
Through showcasing your product as well as educating the viewers on them in ways that a only text can't do, live shopping offers you an alternative to physically purchasing. This in turn encourages sales.
Walmart's senior director and Head of Brand Experiences and Partnerships, Kim Tunick, notes livestream shopping can help establish trust with customers and increase sales.
"[Livestreaminglets us have valuable, fun conversation with our clients in two ways as well as ease the buying experience. We approach it as: Sell first, then entertain later, but in some instances dependent on the item or host or theme it could even be the reverse."
Create a lasting brand experience
By allowing you to show your brand's humanity and connecting with customers, live shopping lets you improve customer experience.
As Arpan Podduturi, the Director of Product Sales and Messaging of Shopify mentions,
"The greater the connectivity we have with each other offline and online to enhance the user experience. And that ultimately gives the main street brands and retailers the chance to endure and grow in the future." Arpan Podduturi, Director of Products Retail and Messaging at Shopify
Livestream shopping is a great option, and gives an opportunity to interact with and create deeper, more lasting relationships with your clients.
The reasons you should take part in a live shopping experience
In addition to its benefits, you can start a live-streamed shopping campaign or make it a regular component of your marketing plan to benefit from the following advantages:
- It's not a problem to experiment with something completely new
- You have extra inventory you want to promote
- There is a faithful following with at least one social channel
- You want to build brand awareness and break through the clutter
Keep in mind: While many think that live sales are ideal for products that lend themselves to impulse buying, the full truth is that live selling can be an effective way to network and make sales in various sectors.
That's the reason you'll see everybody from solo creators like @kimmiebbags and brands such as Benefits Cosmetics making use of live shopping.
Businesses such as BankGeek within the financial sector are planning to make use of live-streamed shopping as well. "During each livestream, we'll discuss different financial products like credits cards, policies for insurance and investment plans so that customers have an overview of what's on the market," says the founder and CEO, Max Benz.
"We also want to provide promotional offers so that viewers are able to take advantage of savings or freebies for signing to certain items or services. Finally, we'll answer any concerns or questions viewers may have concerning their financial situation or options that are available so that they can make informed decisions." Max Benz, Founder & CEO of BankingGeek
How to develop a real-time buying strategy in five steps
Making your shopping event live can help you define your guests' expectations, create hype about them and gain the eyeballs you deserve. You shouldn't write it all right in order to keep your authenticity.
With that, here's how to begin with the live streaming of e-commerce in just five simple steps:
Step 1: Create the format of the livestreaming shopping session
The format helps you plan the way you'll conduct your livestream as well as setting your audience's expectations.
You can always change things up with each session to keep a sense of surprise but be sure to choose a designated session time so that people know when they can join.
For the format itself, ask yourself whether you would prefer an approach that is educational or enjoyable one. You can also adopt a more product-centric approach. This depends on what you're offering.
Aldo's live shopping pilot as an example, was an educational program for products where entertainment star from Los Angeles, Nate Wyatt and celebrity stylist Mimi Cuttrell paired to share their tips on how to style various Aldo accessories and shoes.
You can try any creative strategy. Petro For instance, Petro held a live show for dogs to encourage pet adoptions.
Step 2: Select a host who is friendly for your show.
You can always collaborate with brand ambassadors, influencers, and other influential people for co-hosting the live stream. The upside to this is that you have the opportunity to tap into their power to draw viewers to your live stream.
One idea is to bring people who are interested to watch your live show to grow your reputation on social media. Tommy Hilfiger used this tactic -- inviting customers to share their top pieces from the 2021 spring collection.
They do are only able to know a little about the products you sell, and that brings us to an alternative to host your own store: associates with a solid grasp of product information. That's the reason JCPenny employs these associates for the JCP Live shopping series, where the associates discuss their products.
Have a founder with the support of a large group? Ask them to present the live show as Bobbi Brown has done for her own brand. Jones Road Beauty:
Whether you invite customers stylists, influencers, or artists as your co-host, remember to pick one person who is a friendly and welcoming host who presents all your livestreams so viewers become familiar with the host. This is essential in establishing brand awareness and creating a sense of community by live shopping.
Step 3: Choose a live streaming platform
As your attendee count grows you can livestream your website using live shopping platforms such as Bambuster. This comes with multiple perks like:
- Improved control of your brand's image, thereby increasing the recognition of your brand.
- Access to detailed data on the people who are attending, what they're purchasing from you and how they're engaging in the live occasion.
- There is more opportunity for hosting replays on your site given the fact that 70% of sales from live shopping happen immediately following the event.
The most important thing is that you could use your website as a central library featuring replays and upcoming events such as Nordstorm does:
Step 4: Create your livestreaming set up
The authenticity of your stream is important, and you shouldn't expect everything to be picture perfect. It is important to choose a location with adequate lighting and a soundproof environment so that you don't hear echo throughout the livestream.
Learn more:
Step 5: Develop an advertising plan for live events such as your shopping malls
This is the time to ask yourself questions like:
- How will we invite people to attend the live-shopping event?
- How will we create hype for livestreams?
Another option is to utilize social media in order to advertise your live event. Learn from the giant of e-commerce Shein that uses Instagram Stories to promote its live events.
You can also send an invitation to your personal email list , and request hosts to promote the event's live venue with their audience.
You could also take a leaf from Bloomingdales and they provided macarons and cocktails to viewers who signed up in advance in order to have these during the live broadcast. They also signed those who watched the livestream to the very end in a gift card and basket prize.
You can also offer limited-time promotions to increase purchases at the time of the event.
Ready to host an actual shopping event?
For a quick overview, live-shopping is a great alternative for physical stores, which makes it an effective way to increase sales.
Make sure to pick someone who is friendly as your host, work out the format of your livestream shopping event, and create a set up with lots of lighting and clear audio. Then, after you host your first live shopping sessions analyze which products generated the highest engagement and sales.
Being live requires a lot of moxie, willpower, and plenty of planning -- plus numerous tech tests. We've devised a myriad of resources to cover everything you need to know.