The term live commerce was first coined in 2016 when the Chinese retail giant, Alibaba, hosted a historic first livestream to sell products online. This relatively unique approach opened different avenues for consumer value, quick conversions, and delivering brand-owned experiences, redefining the eCommerce landscape altogether. By 2024, the eCommerce revenue created from live online shopping is expected to increase threefold, reaching 35 billion dollars. Live Commerce can significantly increase your brand’s appeal and distinctiveness as it opens avenues for making sales in an entirely new dimension.
When Brick-and-Mortar Meets Digital
When it comes to eCommerce platforms, there’s probably one important thing missing – the brick-and-mortar shopping vibe. An offline store offers valuable touchpoints that entail an interactive experience for the end-user, allowing them to not simply place orders but make thought-out shopping decisions. Moreover, retailers can provide a real-life demonstration of how products work and what specific features they entail.
After Live Commerce’s success in China, Western brands are now establishing their own live-commerce ventures and events to promote their products. Where Livestream Commerce offers convenience and value, it makes sure enterprises bank on the latest customer engagement strategies to stay ahead of the market.
Why Businesses Need to Invest in Live Commerce
Live Commerce is the closest a buyer can get to a real-life shopping experience. It offers great opportunities for businesses to offer personalized and convenient services to customers. Where live shopping events, especially those conducted online- are bringing innovation to the table, it has driven retailers to an unexplored paradigm of innovative retail channels. McKinsey’s analysis indicates that live commerce-initiated sales could account for as much as 10 to 20 percent of all eCommerce by 2026.
Achieving Competitive Differentiation
Businesses adopting live commerce solutions are on a roll with powerful technology that enables them to create an unrivaled shopping experience for the buyers. This gives them a competitive edge over leading industry players since consumers can connect seamlessly and purchase products in real-time. Live commerce telescopes the overall customer journey from acquiring initial awareness to making the final purchase. This brings a sense of authenticity allowing brands to improve their appeal and differentiation that stands out.
Grappling Conversion with Personalized Buying
Why do retailers need to invest in live commerce? The answer to this is quite simple: it retains a branded experience that increases mass appeal. Live Commerce brings together entertainment and on-the-go shopping that can drive better conversion opportunities for eCommerce stores. Enterprises report a 30% acceleration in their conversion rate which is ten times more than what traditional e-commerce companies produce.
With interactive presentation and product reveals, Live Commerce has the power to quickly convert impulse purchasers into sales leads. Good value-for-money, exclusive deals, and products that can be showcased in a creative manner prove to be a good bang for the buck. This allows retailers to generate a fair amount of consumer interest and bank on huge success in relatively shorter span of time.
While consumer shift is driving eCommerce businesses to explore new avenues in retail, live commerce has got them covered. By integrating live stream and real-time shopping features with existing retail systems, service providers can not only minimize time to value but also channel personalized shopping experiences based on customer trust and engagement.