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What is Live Streaming Ecommerce: A Comprehensive Guide

Mastering Live Streaming Ecommerce

Two years ago, eBay ignited a visual shopping revolution. Today, millions are captivated by the dynamic storytelling of eBay products. Initially, when eBay brought in waves with the beta launch of its short video platform it looked like an immediate competitor to YouTube and TikTok. Now, the beta is over, and the impact is undeniable.

On the other hand, the true intent behind eBay’s move is much more strategic. Rather than challenging these video-sharing giants, eBay’s live sessions were designed with a singular goal: Attract Gen Z to drive more sales and improve user engagement through innovative live commerce strategies.

What is Live Streaming Ecommerce? 

Live commerce is the fusion of online shopping and live streaming. It is the method of integrating live video stream ie, and online videos into social media channels or your e commerce platform. This, in turn, drives additional web traffic and improves the online shopping experience by rapidly increasing attraction.

According to current report statista, live e-commerce is estimated to reach $68 billion in the U.S. solely by 2026. This surge charted on the graph below points to the rising consumer craving for interactive and real-time shopping experiences.

Live streaming ecommerce: A Statistic Survey

Source: https://www.statista.com/

Usually, this process of selling products online and checkout via live video is usually performed by sellers or small businesses in collaboration even with nano influencers or creators. Live commerce also goes by other names—live selling, live stream shopping, live shopping, live stream e-commerce—and falls under the larger category of shoppable video.

Now, to make this evolving live streaming ecommerce successful, sellers have to host a live show for marketing and answering questions from buyers. Whereas, buyers should also be able to engage and interact with the brand at the same time, and buy things through a live stream without having to leave the video. So, one would need certain tools such as a live video shopping tool, live chat, and integration to set up a thriving live streaming ecommerce platform.

Likewise, eBay’s live streaming integrated platform swabbed into this trending strategy and keeps improving the overall shopping experience.

eBay seeks to create a dynamic shopping experience that combines live streaming with online purchasing by incorporating short-form video streams directly into its platform. This hybrid strategy proves to be an engaging way for users to find out and interact with products and creates new routes for retailers to reach their target audiences.

Doing so, eBay hints to many ecommerce businesses on the need to integrate live events into their own website. This is an excellent ecommerce strategy that is to revolutionize the retail landscape in the coming years.

This blog will focus on how the advancement of including short videos in ecommerce platforms is going to change the game for retailers and consumers alike. We’ll delve into the benefits live streaming ecommerce offers and how you should manipulate this innovative approach to monopolize your online shopping niche as well.

Keep reading until you get enough insights into this groundbreaking feature which is not just a trend but a notable shift in the future of retail.

How Live Online Shopping Changed the Way We Shop?

Live online shopping has its roots in teleshopping, a television-based live event for shopping that emerged in the late 20th century. Teleshopping allowed viewers to purchase products directly from the comfort of their homes without leaving their couches by calling a toll-free number displayed on the screen.

While teleshopping laid the groundwork, the advent of the internet and social channels contributed to the rise of e-commerce and set the stage for live online shopping as we know it today.

The early 2000s witnessed the emergence of online shopping platforms, but those weren’t successful and primarily remained as static experiences. Consumers could browse products and make purchases, but there was hardly any interaction. However, the stage was set for a more immersive shopping experience with increased internet speeds and advancements in video streaming technology.

The increasing number of internet users and the rise of social media platforms played a major role in the evolution of live online shopping. Digital Platforms like Facebook and Instagram live video allow potential customers to broadcast real-time content to more than a thousand dedicated followers. This created an opportunity for businesses to interact with their audience more dynamically and boost sales.

Well, who played the pioneering role in popularizing live-streaming ecommerce then? Alibaba is the key figure in popularizing live online shopping. This Chinese e-commerce dragon made it happen with its Singles’ Day shopping event.

It was at this event Alibaba introduced the use of live streaming to drive sales by showcasing their products. Other ecommerce websites and retailers started adopting live streaming as a strategic channel inspired by the success of Taobao’s model.

Alongside this inspiration, technological advancements were instrumental in the growth of live online shopping. High-quality video streaming, technically advanced mobile devices, and robust internet connectivity have made it possible for consumers to enjoy smooth live shopping experiences.

Additionally, the development of augmented reality (AR) and virtual reality (VR) technologies has made product demos and interactive shopping environments a much better and adaptable strategy.

Gradually, in recent years, live online shopping has gained significant traction worldwide. Major Platforms like Amazon, Instagram, and TikTok have integrated live shopping features, making it accessible to younger audiences.

As the industry continues to evolve, we can expect to see even more innovative and engaging live shopping events emerge. How long will you just keep reading and sharing feeds on such innovative business advancements? It’s high time to adapt to these trends.

The video below validates my points on live streaming ecommerce with its benefits and a lot more.

This video is about live-stream shopping, which is becoming increasingly popular. The video centers around what live stream shopping is, how it works, and the benefits of using it.

What is Your Business – Technology =?

Technology is no longer just a part of businesses, it’s their lifeblood these days. You won’t find a better catalyst for innovation, efficiency, and customer satisfaction than technology. Failing to adapt to evolving tech trends, businesses risk becoming irrelevant, and unable to keep pace with competitors who leverage technology to their advantage.  

A classic example of this is the battle between eBay and Taobao. eBay, though rules the global e-commerce niche, once faced a formidable challenge from Taobao, a relatively new Chinese platform. The result of this clash proves to be a stark reminder of the consequences of technological inertia to this day.

eBay was the only ruling ecommerce platform in China. Alibaba’s Taobao live disrupted the e-commerce landscape. This feature became a tremendous hit and improved the brand’s appeal among Chinese consumers fostering a sense of community and authenticity.

Unlike eBay, which focused on a global marketplace, Taobao targeted the local Chinese market, after completely analyzing and understanding the pain points of the target demographic and their preferences. Moreover, Taobao’s localized focus and effective utilization of multiple platforms to reach sellers and buyers alike make it stand apart.

This short comparative case study throws light on the critical importance of adaptability and technological enhancements. Even a well-established giant like eBay couldn’t withstand the pressure from a more agile competitor that embraced innovation and consumer-centric strategies. So, always bear in mind, that the reluctance to evolve and integrate emerging technologies can be a fatal flaw.

Would you want to be the Next big Taobao or end up like eBay?

The case study shows e-commerce to be a battlefield where the clash between eBay and Taobao is a stark reminder that staying stagnant is a dangerous game.

Taobao didn’t just outsmart eBay, it revolutionized the industry. By integrating live streaming, they’ve transformed shopping into an interactive, engaging experience.

They are the pioneers who promoted this sense of building community with a large following allowing customers to connect with brands and influencers in real-time. What Taobao has done is more than just selling products; it has created an entertainment-driven shopping ecosystem.  

On the other hand, though successful until Taobao’s entry eBay was a traditional auction-based model, that couldn’t keep pace with the evolving preferences of its consumers. The lack of a strong community focus and the failure to capitalize on live streaming’s potential was the reason behind the drop in market share.

So, which course will your ecommerce business take? Will you be a pioneer like Taobao, Creating an impressive shopping experience by leveraging technology, or will you risk being ghosted for a period like another eBay?

The choice is clear: adopt live streaming, build a community, prioritize customer engagement, and maximize conversion rates. The future of e-commerce belongs to those who can adapt to the current live streaming ecommerce trends and innovate.

How can you keep your customers occupied? For that, you’ll need more than just live videos, So check out these four live shopping trends sooner rather than later to earn a competitive edge

Multistreaming

Stream your live commerce videos to multiple networks possible to gain the most out of it. Give your audience the choice to join your stream where they feel the most comfortable because not all your customers will choose to watch you on the same platform. You can go live on a live commerce platform like Amazon and even to social medias like Facebook, Instagram, etc. The effectiveness of your multistreams increases as viewers share it with their friends. Also, make the purchasing process seamless leveraging frictionless checkouts as possible.

One-on-one live shopping events

Let your users experience the privilege of personal shopping experience by hosting one-on-one live chats and consultations. Although streaming to a larger audience boosts the chances of making more sales, setting up live calls with a single customer has a higher possibility of making them purchase your products.

Virtual reality and the metaverse

Have you experienced the magic of Live videos with virtual and augmented reality? If yes then give it to your viewers too. These technologies allow viewers to see clothes, furniture, electronics, and all kinds of physical goods from multiple angles.

Experiencing the magic of VR in Live ecommerce

Source: https://ecommercegermany.com/

And in the case of the fashion industry, consumers can even “try them on” with augmented reality. Ikea lets people design rooms and customize home decor with augmented reality. This can help you reduce returns in the long run.

Experiencing the magic of VR in Live ecommerce

source: https://www.n41.com/

Blockchain and NFTs

The retail sector has already begun to adopt blockchain, cryptocurrency, and non-fungible tokens (NFTs). This is a sign that soon these technologies will be adopted by live e-commerce as well. Some live shopping platforms like NTWRK have blockchain built into their shopping models. And, they authorize users to trade NFTs in addition to physical goods. Meanwhile, brands like Nike and Gucci have started offering virtual shoes, and purchasing virtual apparel for your online avatar is becoming more and more a common trend.

Live Shopping Solution Tech Stack

The trends discussed above have the potential to transform your platform but, you must be well-informed of the tech stack to live streaming ecommerce.

Server Requirements

  • Cloud servers with load balancer options such as AWS, and Digital Ocean to ensure high availability and reliability.
  • Highly scalable Databases such as MongoDB to handle large amounts of data efficiently
  • Seamless API integration with Node API for efficient backend development.
  • Instant communication for chat and comments using Socket.io Or Pusher.com, provides real-time interaction features with reliable communication
  • Admin Control Panel using Laravel (a PHP framework) with MongoDB as a database to manage your platform efficiently.

Mobile Application Requirements

  • Native Applications are highly recommended as they guarantee optimal performance and user experience.
  • Android App in Kotlin or Java to build high-quality Android apps.
  • iOS App using Swift to develop powerful and intuitive iOS apps.

Streaming Requirements

  • Streaming Cloud Services such as ZegoCloud to deliver high-quality live streaming videos.
  • Inbuilt CDN support with streaming clouds to make sure of quick and reliable content delivery.
  • Amazon S3 buckets for video streaming and storage stack and stream video content effectively.
  • Guarantee smooth playback by adjusting video quality based on the viewer’s internet connection using Adaptive Bitrate Streaming

Recorded Video Playback Requirements

  • Amazon S3 Bucket for storing the live session recordings securely and reliably.
  • Seamless login for syncing the video and user comments to let users experience a continuous and interactive viewing experience

How to Integrate Live Streams into Your E-commerce Platform?

Despite using the available social channels for live streaming, integrating live streaming directly into your ecommerce platform sweetens the customer experience. It increases genuineness and lowers the risk of customers being misled by fake sites featuring false special deals.

Additionally, you can hold a powerful online reputation by managing issues and showcasing transparency directly to your audience. So, get to know how to nail the process of combining shoppable live streaming solutions partnering with an app development company:

Understanding the Basics of Your Live Streaming Ecommerce Platform

Define the purpose of your live streams (product launches, demos, Q&As, etc.).

Identify the Target Audience and market size so that you can tailor content accordingly.

Choose a Platform after proper analysis about which is the best either to opt for third-party integrations or to build a custom solution.

Partnering with a Live Streaming Ecommerce App Development Company

Define Requirements such as features, and integrations for the development team to understand.

Choose the Right Technology Stack to merge video streaming servers with compatible technologies.

Ensure a seamless user experience with a unique UI/UX Design that appeals to both viewers and hosts.

Prioritize data security and performance by optimizing for smooth streaming.

Before partnering with any proficient ecommerce app development service providers, be clear about the features you should never compromise for.

5 Essential Features for Your Live Streaming Ecommerce

  1. Invest in good cameras and stable internet connections to stream high-quality videos.
  2. Incorporate interactive elements such as chat, Q&A, polls, and product tagging.
  3. Integrate shopping carts so that viewers can purchase products directly from the stream.
  4. Make use of analytics to track viewer behaviour, sales, and engagement metrics.
  5. Ensure a great viewing experience through Mobile Optimization for smartphones and tablets.

Proceed to set up live streaming ecommerce with a clear idea of what to include in your platform.

Set Up Your Live Streaming Ecommerce in 6 Steps

Step1: Select a Live Streaming Server that aligns with your scale at a lower cost. Popular servers include AWS, Azure, Wowza, and Red5 Pro.

Step2: Develop a user-friendly streaming interface for broadcasters to manage live streams.

Step3: Integrate your product catalog and shopping cart to these features of live streaming.

Step4: Integrate interactive features like chat, product tagging, and shopping cart integration.

Step5: Perform strict testing to identify and fix issues if any before launch.

Step6: Develop a marketing strategy to draw viewers and build anticipation.

A well-built platform alone can’t guarantee success. You need to follow strategies that work too.

X Best Practices for Successful Live Streaming Ecommerce

  • Plan Content Carefully to stream engaging and informative live events.
  • Interact with Viewers to build relationships through real-time engagement.
  • Offer Exclusive Deals and you can also incentivize purchases with limited-time offers.
  • Analyze Performance using analytics and keep changing strategies to optimize future live streams.
  • Guarantee adequate bandwidth to handle live streams without buffering.
  • Minimize latency between live video and viewer experience.
  • Protect viewer data and prevent unauthorized access.
  • Devise the system to handle increasing viewership.
  • Provide exceptional customer support for both viewers and hosts.

As this is a growing technology, it serves to be a boon to retailers as well as consumers alike. let’s explore them

8 Unmistakable Advantages of Live Streaming Ecommerce for Retailers and Customers

Here are the key advantage for both retailers and customers.

For Retailers:

  1. Expand sales and income through interactive shopping.
  2. Heighten consumer relationships and loyalty.
  3. Earn valuable insights on consumer behavior for product improvement.
  4. Lower returns and cart abandonment through detailed product demos.
  5. Extend market reach and find new customer details.
  6. Optimize inventory based on real-time demand.
  7. Reduce marketing costs through entertaining live streams.
  8. Gain a competitive edge in the market.

For Customers:

  1. Enjoy interactive and amusing shopping experiences.
  2. Access professional product information and demonstrations.
  3. Benefit from premier deals and promotions.
  4. Communicate shopping experiences with friends and family.
  5. Shop conveniently from anywhere, anytime.
  6. Become a part of a shopping community and explore new sectors.
  7. Be occupied while finding new products.
  8. Effortlessly discover new products and brands.

Despite all the advantages and knowing the best practices, keep in mind the common mistakes that have the potential to backfire.

10 Pitfalls of Live Streaming Ecommerce to be Aware of

  1. Technical Difficulties like, issues with audio, video, or platform performance can disrupt the shopping experience and damage your brand’s reputation.
  2. Low Viewership can be challenging, especially for new platforms as it would be a hurdle to build customer trust.
  3. Ineffective Hosts with poor product knowledge would fail to engage, it can lead to a dull and uninspiring Livestream.
  4. Real-time inventory Management during a live stream can be complicated and lead to stockouts or overstocking if not planned before.
  5. Customer Service Issues like the inability to Handle a high volume of questions or inquiries during a live stream can devastate customers.
  6. Return Rate Increase is common if products are not explained accurately.
  7. The live streaming space is becoming increasingly competitive, making it challenging to stand out.
  8. Failing to Protect customer data and ensure a secured total transaction is a blunder as it’s the main reason why consumers trust any brand.
  9. Producing high-quality live streams can be time and resouce consuming.
  10. Viewers will lose Interest if live streams are scripted or inauthentic.

All of these seem daunting? Be smart! You are all set to successfully develop your live streaming ecommerce platform and reap revenues. Choose to work closely with a proficient app development company, it’s your elevator to success.

Live Streaming Ecommerce with AppKodes

AppKodes can be your perfect partner in revolutionizing your ecommerce experience through live streaming. Our cutting-edge platform is conceived to empower businesses of all sizes to employ customers in real time, drive sales, and make lasting relationships.

What sets AppKodes apart?

  • Our live streaming solution integrates seamlessly with your current ecommerce platform, furnishing an agreeable and cohesive shopping experience.
  • From interactive live chats to product showcases and real-time analytics, our platform delivers a comprehensive suite of features to push engagement and conversions.
  • We understand that every business is exceptional. Our platform is highly customizable, permitting you to tailor it to your brand appeal and the preferences of consumers.
  • Our solution can manage increasing traffic and growth be it you’re a small startup or a large enterprise
  • Our trustworthy team of experts guarantees the smooth functioning of your live streaming platform by providing round-the-clock support.

By picking AppKodes’ ecommerce app development services you’re funding a future-proof solution that will enable you to stay ahead of the competition and produce exceptional customer experiences.

Let’s transform your business together! Contact us today for a free demo.

Starting as an iOS developer and moving up to lead a mobile team at a startup, I've expanded my expertise into Project Management, DevOps and eventually becoming a COO & Chief Service Officer in the IT sector. As a CSO, I excel in team leadership, technical advice, and managing complex business functions, focusing on combining technology and operations to drive growth. I'm keen to connect for collaborations or to exchange insights in the tech world!


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