Live Commerce: What Is and Why You Should Be Doing ItAs we all know, the pandemic worked as a catalyst to surge global E-commerce from 15% of total retail sales in 2019 to 21% in...
As we all know, the pandemic worked as a catalyst to surge global E-commerce from 15% of total retail sales in 2019 to 21% in 2021. Moreover, the global E-commerce market is estimated to reach a value of US$ 48.2 Bn by the end of 2022 and is expected to reach at a value of US$ 117.7 Bn by 2030 with a significant CAGR of 11.9%. However, order fulfillment continues to be a challenge within E-commerce globally.
If you have not heard, many of the start-ups have been adopting live commerce as it provides a number of key advantages that can help them stand out in a crowded field. Increased engagement, increased sales, personalization, cost-effectiveness, and real-time feedback are some of the reasons why RetailTech start-ups are implementing live commerce in their sales strategy.
But first, what is Live Commerce?
What Is Live Commerce
In layman’s terms, Live Commerce is the practice of selling products or services online via live-streaming video. A host or presenter often shows products or services to an audience while collecting orders or answering inquiries in real-time. Live commerce is commonly utilized to provide customers with a more dynamic and engaging buying experience, and it can be used by RetailTech of all kinds and sorts to promote sales and customer engagement.
Moreover, Live Commerce can be really effective for Generation Z as it gained popularity in influencer culture. Based on over 2,000 survey interviews with 13 – 38 years olds by Morning Consult, 65% of the participant reported that they actively follow influencers, and 52% stated that they trust in influencers’ recommendations.
Benefits of Live Commerce
While Live Commerce was already popular in China back in 2016, it really started gaining popularity during the pandemic as it gave personal touch and brought people together in the times of pandemic quarantine.
There are many advantages of incorporating live commerce, but we have summed up 5 key advantages that Live Commerce brings to the table:
Increased Personal and Engaging Connection With Customers
One major benefit of live commerce is that it enables businesses to connect with customers in a more personal and engaging manner. Customers can get a greater idea of a product’s features, quality, and how it can be utilized by watching a live video of it. Furthermore, live commerce may be utilized to showcase the product in a variety of contexts, which can assist clients in visualizing how the product will fit into their own life. This can lead to higher sales and repeat consumers by increasing customer trust and loyalty.
Higher Conversion Rate
Another advantage of live commerce is that it can boost conversion rates. Customers are more inclined to buy because they can see the product in action and ask questions in real time. Furthermore, businesses can use live commerce to offer flash discounts, which can generate a sense of urgency and motivate people to buy right away.
Wider Audience Rate
Live commerce can also help you reach a larger audience. Businesses may engage with customers all around the world by streaming live videos of their products. This can assist grow revenue and customer base, which is especially advantageous for small or new enterprises.
Interaction With Products In Real-Time
Another primary benefit of live commerce is that it allows customers to engage with products in real-time. This is especially useful for companies selling things that are difficult to describe or demonstrate via typical e-commerce channels, such as apparel, furniture, and cosmetic products. Businesses may assist clients to make more informed purchasing decisions by allowing them to see the product in action.
Collection of Valuable Customer Data
Another benefit of live commerce is that it allows firms to acquire vital customer information. Businesses can learn more about their consumers’ interests, behaviors, and problem areas by evaluating the data acquired during live feeds. This data can be utilized to improve the consumer experience, provide better products, and boost sales.
Overall, live commerce is a rapidly developing trend in the retail industry, with numerous advantages for retail technology startups. Businesses can communicate with customers in a more personal and engaging way, enhance conversion rates, reach a larger audience, and collect vital customer data by implementing live commerce into their business model. Furthermore, live commerce can be a low-cost solution that allows customers to interact with products in real time, foster customer community, and generate shared experiences. The benefits of live commerce for companies of all sizes are only expected to rise as technology evolves.
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