9 min read
Live eCommerce is the next big business idea…
But you probably haven’t read anything about the live eCommerce business model on the internet.
Unlike other traditional live streams or eCommerce I know, live eCommerce is not about selling products. Or making money using tech.
Instead, it is about the democratization of individuals potential – meaning the power of an individual to influence another individual.
Today, I’m going behind-the-scenes to share how live eCommerce will build your wealth.
This is all a part of live eCommerce financial growth week, where I am researching consistently about how and in what ways live streaming is helping online store owners as well as physical retailers to build their business and brands.
By which I mean in the following blogs you’ll learn about:
- How live eCommerce will skyrocket your revenue?
- Strategies to implement your own live eCommerce
- Business and revenue model of live eCommerce
And whatever I find later on my research.
So in today’s article, I’ll be answering popular questions like:
- So seriously, what is live eCommerce?
- You lost me, Poindexter, what does live eCommerce mean for me?
- Who is using live eCommerce?
- Is that truly working for them?
- But wait, I read something on blogs that live eCommerce has its own challenges that said I shouldn’t do this?
- I am a physical retailer, if I update my store for live eCommerce, is it going to change my e-store business? Like, am I all of a sudden going to see more revenue or something?
And here’s my study.
So seriously, what is live eCommerce?
While many predicted that video streaming will drive marketing and businesses online, I am sure only a few understood the real meaning of it. We all have heard that live streaming is helping online business engage their customers and build trust. But does it actually drive ROI?
Well not, to be honest. Yes, it did help brands improve their customer base. Yet failed to monetize the efforts. What I found lately was people who understood the real potential of live streaming took that brilliantly to the next level.
Learn about: How a live streaming script grow your online store sale?
To be more specific, live eCommerce is nothing but using the potential of live video streaming to the fullest by integrating it with the online shopping business model to feed customers who are ready to spend $600 billion on helpful products online.
Live eCommerce is a process of combining live video streaming with traditional online shopping. From selling an actual product in the middle of the streaming till giving interactive support about a product on air.
Many companies are leveraging live streaming, using influencers, celebrities and reputed bloggers to market their products and interact with the stream viewers. While very few companies are advancing their live commerce business with sleep benefits where viewers could purchase products on the spot in a tap without skipping the stream.
You lost me, Poindexter, what does live eCommerce mean for me?
Fun Stat: 80% of viewers are more likely to purchase with video and 57% of viewers are more confident in purchases.
It means including live eCommerce in your conventional e-commerce business can boost your sale on an average of 20%, with choosing the right platform to stream or by developing your brand a killer live eCommerce platform can improve 40% ROI of your online store business.
Live eCommerce customer service is a callback to the days where we truly talk to real people when we bought things. During every live stream, the video viewer could communicate with the streaming host and also get all of their questions answered by an authorized staff member.
With a live broadcast, a user could easily access product knowledge and also see product tested live, that would be hard to try at home plus asking for live requests that the host could try on air. This much information sharing and gathering could provide a huge boost in converting viewers to customers.
Marketing efforts today are being designed to trigger a customer to seek information and then purchase the product. So matter who and what business you do, the content you provide to your user does not contain any entertainment value, people will not consume the content.
Most people are skipping pre-roll ads or changing channels during commercial advertisements, meaning that only a small percentage of the potential audience is actually viewing your content.
Physical retailers and online brands can increase their viewership and create an even bigger opportunity to convert people from viewers into buyers by combining the right types of entertainment to pull your target audience.
Who is using live eCommerce? Is that truly working for them?
Live streaming has the ability to influence an online shoppers shopping decision. And below are the company’s who nailed it.
$ Bringing live streaming with online shopping has skyrocketed a company’s conversion by 21 times and drive 130X revenue in a single live commerce session.
Another reason to invest in a live commerce business is that this business model is bringing the forsaken human interaction back to eCommerce.
$ AliExpress, an Alibaba subsidiary, launched a live commerce service called ‘AliExpress LIVE’, which saw as many as 320,000 goods being purchased per one million views during their single live streaming session.
$ Taobao confessed their live broadcasting platform realized more than a 50% increase in their conversion rate.
$ A top seller using Taobao has over 2M followers, making 25 million RMB ($4 million)per year. Where she sold 70 million GMV during a 5-hour live broadcast, setting a record.
$ One walnut snack was sold in over 200k orders, on which 60k was sold out in one second after the host introduced the product. The broadcaster had to contact the manufacturer to replenish their inventory twice, until all they had were sold out, in just 5 minutes.
But wait, I read something on blogs that live eCommerce has its own challenges that said I shouldn’t do this?
Though live eCommerce seems to be enticing as with any new technology, there will always be positives and negatives that a company must consider. Live eCommerce is a service that requires a lot of planning and preparation, but with the right game plan, product, and traffic, live commerce is a must strategy to explore in 2019.
The unpredictability in live eCommerce platform you choose to stream, it may be anything from the streaming server downtime the platform runs to the internet connection you have.
Capturing live audience available at the exact time of your stream in the platform is also something you should be concerned about. This can become even worse if you’re a brand with no pre-existing audience, then you’ve got to invest in some pre-event marketing which is like doubling your investment.
In terms of the backlogs of viewership and marketing, a great live eCommerce solution is that one cleverly streams the live event on social media for better reach.
A platform that enables reach more viewers, but not loses the features of live commerce.
I am a physical retailer, if I update my store for live eCommerce, is it going to change my e-store business? Like, am I all of a sudden going to see more revenue or something?
Not just me, no one can promise you a significant 30% hike in ROI as soon as you’ve implemented the live eCommerce strategy. But what I can promise you, on the other hand, is if you are ready to invest in a strong commercial proposition rich live eCommerce platform you’ll enjoy frictionless conversion like never before.
A live streaming shopping platform that you’re going to invest in should be affordable and commercially rich with advanced features. It needs a strong selling proposition that suits your brand’s content.
And also the video you’re going to stream should be digestible and entertainable. Your product live stream should be commercial without being too sales-sy. Viewers should not get the feeling that they are part of an infomercial, that’s where the real struggle is.
Therefore the proposition you’re going to invest in should be unique, relevant, needy, and electrifying. For more tips on how to shape strong live eCommerce propositions, keep an eye on our blog series.
Live streaming ideas you should keep an eye for
The platform you choose to stream your brand should give you the potential of streaming different kinds of video content where you’ll be able to schedule the live content and create a curiosity to your viewers and then stream. You can also provide an option for your viewers to reserve seats for the live stream. For more streaming ideas using live eCommerce strategy, read this blog.
Unique selling propositions for you matter, too
Your brand’s unique selling propositions during the streaming can be nourished with appealing offers, aggressive deals, limited editions, huge discounts, and interactive concepts like self-destructing coupons.
These methods work especially well in combination with live video. Moreover, live video increases the ‘Know-Like-Trust’ factor, creating a feeling of authenticity in the minds of your customers. 90% of buyers claim to feel a greater level of trust after having seen a product video.
However, developing your own live eCommerce platform for your brand with many classy features is always advisable. In that case, a live e-commerce script can do a lot good for you. Try to check them out too.
And if you found yourself piqued by what you’ve read, give me some applause below. We all like encouragement.
Experience entertainment shopping yourself!
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