Livestream shopping

There are things that technology can definitely solve, especially when it comes to purchasing opportunities made accessible and affordable. Livestream shopping is a type of transformation of existing practices. Livestream shopping is an online shopping event where customers can make purchases in real time while a video, presenting products, is streaming live. The event can take place on social media platforms, on a mobile app, or on a designated subdomain of the online store. It is one of the hottest trends to emerge during the pandemic, as businesses have adopted this approach to engage customers.

Livestream shopping is extremely helpful when it comes to generating instant feedback on a new product, giving a bestseller an extra boost or clear stock of an older item. Also known as livestream ecommerce, livestream shopping also enables customers to purchase products directly from a video. It entails live video content, two-way communication, and the ability for viewers to seamlessly buy or save featured products directly from the platform.

Enablers – There are certain factors which facilitate livestream shopping. They are –

1. Technology – An essential technology choice is which platform to use for hosting a stream. The accurate choice depends on a company’s level of acquaintance with live commerce. It also involves considering which technology provides the largest target audience, what features it offers, for instance, live chats, likes, etc and the commission to be paid.

2. Tracking – To understand what works and what doesn’t, effective monitoring and measuring of event impact is crucial. The live-commerce operating model has to be flexible so that it can act quickly on the data provided.

3. Marketing – Effective marketing drives performance. It will be helpful to take an omnichannel approach to marketing, where the target audience can be alerted to an upcoming show through emails, newsletters, push notifications and social media platforms. It is also important to have an intimate knowledge of the features( such as relevant graphics and countdown clocks)  offered by the chosen live streaming platform.

Benefits – 1. Builds brand awareness – The interactive nature of livestream shopping helps a brand engage more people with its content. Even if a participant doesn’t become a customer, live streaming can boost a brand’s awareness. Products with complex features will benefit from being shown live to an audience. The audience can interact through comments and polls. For instance, a potential customer can request that the host show the product from a different angle.

2. Boost sales of underperforming products – Some products might not gain enough popularity for a variety of reasons. Livestream shopping can be a way to increase the sales of such products. The host can emphasize the positive features of such products or make them part of special packages available only for the duration of the live event.

3. Removes friction from the shopping process – Livestream shopping is gaining momentum with young consumers because of its ability to remove friction from the shopping process. During a livestream, shoppers are able to ask questions and see various sizes and colors in real time. That means shoppers are more likely to keep what they purchase. For instance, Nordstrom launched its own livestream channel in 2020. Since then, it has hosted over 50 virtual events, digitizing the store experience. During each event, customers can shop the fashion products shown in the video and participate in a live chat. In 2020, 54% of the brand’s sales came from digital channels.