Livestreaming e-commerce

Abigail Bosze

Content Writer

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Does the term “livestreaming e‑commerce” ring a bell?

It’s an interesting shopping format imported from China, home to the renowned giant, Alibaba.

Here’s some data to give you an idea of its potential:

• During the 2020 Chinese shopping festival, around 331.6 million people watched livestreaming videos related to online shopping.
• Live streaming e‑commerce in 2019 generated total revenues of 451.3 billion yuan compared to 20.9 billion in 2017.

As you can see, this is a growing trend that’s proving to be quite effective at increasing the conversion rate of any online store. And that’s precisely why we’d like you to get acquainted with it.

Want to know what it is and how to apply it?

This post has all the information you need.

Just keep reading! 😉

👉 Livestreaming e‑commerce: What it is + main advantages

The concept is quite self-explanatory, but here’s a more technical definition:

Livestreaming e‑commerce consists of promoting a shop’s products through live videos on digital platforms while allowing viewers to interact with the host.

This enables you to:

• Show a product in depth: It’s always better to see what a product is like in a (live) video than in a description or in the picture of the product card. It’s as close as it gets to visiting a physical store – without even moving. 
• Respond to the consumer queries in real time: Being a live event, users can ask questions for the host to address straightaway.

To give you an idea of how it works, here’s a live streaming compilation made in PopShop Live.

As you can see, this format has been used to advertise cosmetics, clothing, and stationery products. You can even sell decks of cards for magic tricks.

No matter what you sell, livestreaming will always give your sales a boost.

✅ Advantages of using livestreaming to advertise your products

What makes live streaming so special?

• It’s interactive: It enables bidirectional communication. Viewers use the chat section to communicate with you in real time, which allows you to address potential sales objections.
• Your audience gets to know your products better: It’s happened to everyone – you buy a clothing item because of its looks and as soon as you receive it, you find out the fabric isn’t what you expected. However, when you see it being handled by someone else, you get a more realistic idea of what the item (or any other product is like).
• It’s non-intrusive: It’s not like you’re chasing people around begging them to buy. It’s the users who log in to watch the stream, so you know they’re already interested in your product.
• It doesn’t require a huge money investment: You can livestream at zero cost (except for your time, of course) on Facebook, Instagram, YouTube, or any social media you’re on.
• More convenient: Nowadays, consumers prefer to buy online from home or from their phones. And this shopping format is the closest they get to shopping in physical stores.
• It’s entertaining and adds some value: It’s an entertaining way of reaching out to your clients to show them the advantages of your products. If, for instance, you own a clothes shop, you can show them how to pair different items for flashy and fashionable looks.
• It instills confidence: You have a real person using your product and showing how good it is. This humanizes your brand and helps you instill confidence in potential customers.

Not too bad, right?

After reading this list, you must be considering giving livestreaming a shot. But do you know how it works?

Keep reading because we’re about to tell you the steps to follow.

👉 How to implement livestreaming into your store

This is more than just grabbing your phone and streaming away… or is it?

In any case, to get it right and ensure success, you must be clear on the strategy to follow, the channel you’re going to use, and who you’re showing your products to.

In other words, there’s definitely some “prep work”.

So make good note of this section. 😉

✅ 1. Choose the right platform

Livestreams can be broadcast both from social media and specific livestreaming platforms.

Let’s go over the options you have at your disposal.

➡️ A. Social media

You can use social media to create free livestreams. You can use any of these platforms (among others) to show your products:

• Facebook Live
• Instagram Live
• YouTube Live
• Snapchat
• Periscope (Twitter’s app for live broadcasting)

One of the main advantages of social media is that most viewers will be your followers too, which means they’ve already shown interest in your shop and are, therefore, more willing to buy.

Check out this kitchen items shop.

These are some shots from livestreams they’ve created. Each of them focused on a specific product type or category. It’s as easy as grabbing a phone and giving viewers a virtual walkthrough of your physical store, showing your products, and detailing what makes each of them unique.

➡️ B. Register on livestreaming platforms

There are also platforms specifically devoted to livestreaming, such as Taobao Live, Xiaohongshu and PopShop Live.

These are all paid websites, but they have some key advantages, including:

• Instant purchase: Purchases can be made from the streaming site by just clicking on the link provided. This functionality is also present in free platforms such as Facebook and Instagram Shops.
• Payment and shipping management: Sales are registered on the very same platform that deals with payments and shipping.
• Email capture: This allows you to gather the email addresses of your viewers. Your subscriber list will grow and you’ll be able to use email marketing to get in touch with them. So, even if they don’t buy anything during the stream, they may end up doing so after getting more information via email.  

Lastly, here’s an example of livestreaming on Taobao, a Chinese platform.

➡️ C. Other platforms (such as Amazon Live)

Marketplaces (Amazon, eBay, Alibaba, etc.) have also jumped on the bandwagon by enabling livestreaming on their platform.

Amazon Live, for example, allows shops to show their products, and users can place an immediate order by just clicking on the link below the video.

That’s what they’ve done in this baby harnesses shop. In the picture, you can see a live demonstration of how to put them on.

✅ 2. Choose who’s going to promote your products

The face in front of the screen does matter.

A survey on livestreaming carried out in China in June 2020 revealed that when it comes to purchase decisions, 23% of informants were influenced by the presenter’s popularity.

If you’re just getting started with your e‑commerce or if you’re on a tight budget, you’ve got 2 options:

• Begin by advertising the products yourself (at the end of the day, no one knows them better than you).
• Collaborate with microinfluencers in exchange for free products or sales-based commissions.

Not only will influencers help you reach a wider audience with more potential clients, but your credibility will also increase.

Mind you, to ensure credibility, find an influencer that knows what you’re selling to a T. If, for example, you sell matcha tea, look for influencers within the niche of hot drinks or healthy food. This will boost your social proof because users will find this person’s testimony more trustworthy.

✅ 3. Action! Final tips for perfect livestreaming

While it’s always going to help, you don’t need professional equipment to get started. In fact, it’s common to broadcast from your own phone.

What you do need, however, is a good Internet connection (be careful with crashes during streams as they could easily result in viewers losing interest).

The difficult part comes once the technical part is sorted out – getting in front of the camera and speaking.

Fortunately, there are also some tips to make the stream more amusing and effective:

• Show your products from different angles: You can even disassemble them, if necessary, to show each of the elements.
• Help viewers picture themselves with it: Try it on and use it in every way possible. Make viewers want to have it on too. This is particularly effective if you’re selling clothes or accessories, or even cosmetics and make-up.
• Demonstrate how it works: This is great for tech products or anything with more complex functioning in general. You can show viewers their different features and highlight how easy they are to use.
• Address objections: Why would someone not buy from you? Use the livestream to deal with any objections that may arise. You can even respond to them as they come up in the chat.

We have no doubt these tips will prove useful when you go live – and you may even enjoy recording yourself in the end. If you don’t, however, don’t forget you can always leave the task to influencers.

👉 Create a direct live connection with your audience

As you’ve seen, livestreaming is a highly effective shopping format you can easily implement since you only need your smartphone to begin recording.

So there’s no excuse not to join this new trend of livestreaming e‑commerce. You may find it intimidating at first, but think about the impact it can have on your sales. That should give you the motivation you need!

See you on your next stream. 😉