Considered one of the most promising strategies for e-commerce, live streaming has joined e-commerce to start what we call Live Commercea modality that, as the name implies, promotes and leverages "live" sales.
This practice began to gain strength in China, and between 2019 and 2020, showed a growth of 210% and moved about $157 billion just last year.
According to Renata Thiébaut, COO of Green Proposition at Alibaba Global Inniciatives, an estimated 90% of Chinese shop online, and this reinvention of online sales quickly expanded to other brands around the world, which are looking for new ways to reach the consumer and, above all, engage them and subsequently build loyalty.
How does Live Commerce work?
Whether it is digital games, shows or simply moments of routinelive streaming is a very common practice nowadays. These transmissions in real time online have become popular and have reached the most varied market niches, including commerce.
Live Commerce grew out of this and gained widespread popularity during the pandemic. However, it is actually a reimagining of what sales channels like Polishop used to do on television - known as home shopping -but in a more modern way.
Although it has a similar structure, Live Commerce is distinguished by three points:
- The programs are live (in home shopping, they might be recorded);
- They take place on platforms that, obviously, demand internet;
- Just click on the product link to be directed to e-commerce.
In this case, the great advantage of Live Commerce is the interaction that brands have with consumers, because it allows the seller and customer have greater proximity, resulting in greater engagement and, consequently, in greater conversion at the time of sale.
Mental triggers such as scarcity and urgency, authority in the market and partnership with influencers and / or bloggers are used tactics that give a real "buzz" in the marketing around the advertised products and are great differentials for conversion.
Why invest in Live Commerce?
More than being a way to get closer to customers and have a key role for conversion, Live Commerce offers other benefits for your business. These are
- Promotes interactivity with consumers;
- Presents the products in a practical way;
- Assists in capturing leads.
Advantageous for brands, stores and consumers
A survey conducted by Wyzowl, a video marketing statistics company, presented interesting information about the impact of Live Commerce on the entire e-commerce ecosystem, proving to be a really effective and valuable strategy:
- 96% of users watch explainer videos to understand more about a product and/or service;
- 84% feel convinced to buy a product after watching a brand video;
- 66% prefer to learn about a product and/or service through video.
That is, the Live Commerce strategy is not only advantageous for brands and stores, but also for consumers, who have their questions answered more easily.
In addition, betting on Live Streaming e-commerce is also a way to encourage users to stay longer on the page, which can generate an increase in the average purchase ticket, as well as help attract new consumers through valuable content.
The challenges of Live Commerce
Although seemingly easy, producing a Live Streaming demands certain challenges from brands, as well as representing - depending on the case - a high investment.
Technical challenges, for example, are the most relevant because they involve several technologies. They also require a team of qualified professionals to prepare them.
Which, as a consequence, can mean a high investment.
In addition, it is important to be aware of whether the e-commerce is prepared to receive the high flow of customers from Live Commerce. It is also necessary to keep the products always in stock, so as not to run the risk of losing sales due to stock unavailability.
Still, even with these challenges and considering all the advantages presented throughout this text, Live Commerce has been a promising tactic to leverage sales.
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*Article also published by Codeby on E-commerce Brasil partner site.