The live e-commerce industry is gaining momentum with Asia-Pacific being the region of greatest interest and China with the highest awareness of live e-commerce platforms. According to a recent market report, the global live e-commerce industry is expected to grow at 8% CAGR through 2028 creating unlimited opportunities for businesspersons, stakeholders, and others in this sector. Not only live e-commerce has emerged as a whole new sector, but the concept of live shopping is getting adopted increasingly. No wonder that live e-commerce has become a lucrative business idea for many in the recent years and at the same time the competition in this field has become quite tough.
Starting a live e-commerce business is not enough anymore, you need to take certain strategic steps/approach to excel. To help you with that, we are going to give a detailed guide on how to make your live e-commerce idea a huge success. So, let’s start with the basics before we delve deeper.
What is Live E-commerce?
Live e-commerce is a trending business concept where various businesses, shops, or online retailers sell items/products and services through live streaming. Such live streaming also includes the demonstration and discussion of the offering, related products, answering audience queries in real time, offering instant coupons, discounts, and many more. A livestream session could take place on a social networking platform or on an e-commerce website; individual brand to a variety of merchants – live e-commerce is beneficial for all.
Be it an e-commerce giant like Amazon or a leading video sharing platform like YouTube -the live e-commerce/ live shopping concept is already in the limelight around the globe and the positive response from the audience is set to keep this trend going in the near future.
Advantages of Live E-commerce
While the outbreak of the COVID-19 pandemic has spiked the demand for online shopping further, the introduction of live e-commerce has brought much-needed change in the global e-commerce sector.
Let’s have a look at the top advantages of live e-commerce –
- Because your audience may join the live stream by just connecting to the internet, there are no restrictions on where they can connect from. This allows participants to take part in the live event from the comfort of their own homes or offices. When live streaming is used, the costs of attending live commerce shows are also eliminated. As a result, you can reach a global audience base in real-time without spending heavily
- Live streaming provides a more intimate connection between the host and their audience in mainly two ways – i. The human element of visualized body language, facial features, and eye contact, is added to video. ii. Along with the main video material, live video streams frequently include conversation windows such as interactive live chats so that both the hosts and the viewers can communicate in real time. This make the live shopping more authentic, reliable and effective at the same time
There is no other effective way to garner this level of engagement for an e-commerce business.
- Using free platforms like Facebook Live, Instagram, or Periscope, business owners may now stream live video content via their social media profiles. Furthermore, with the rise of influencer marketing, audiences are becoming increasingly accustomed to being addressed directly through their screens, regardless of the broadcast’s location. And live shopping is the most affordable all-in-one solution for all these!
- Live shopping can make huge sales in the shortest amount of time possible. To give you a glimpse, the Chinese influencer Li Jiaqi once sold 15,000 lipsticks in just five minutes during a live shopping session!
- Live e-commerce can considerably boost brand awareness among the audience, encourage impulse buying, as well as help increase the overall traffic to your website.
Now that you have a clearer knowledge on live e-commerce, let’s walk you through how you can make your own live e-commerce idea successful.
The Guide to a Successful Live E-commerce Business
1. Think Out of the Box
Live e-commerce itself is a unique idea, but it’s not so uncommon in the e-commerce sector anymore. So, if you are at the starting phase to chalk out your live e-commerce business plan, then it is recommended to come up with unique ideas.
A few tips to help you with this –
- Try to focus on your niche areas/your interests as well as the type of audience you would be targeting. For instance, if you are more into the electronics and have relevant expertise/knowledge then opening a live e-commerce store for electronic equipment can be your first choice
- Don’t follow the trends blindly. Just because a recent live shopping event sold thousands of shoes, it does not imply you will get the same result doing so. It is important to be clear about your vision and strategies from the very beginning. Unless you have a proper idea on the type of products you will be selling, don’t make a decision
- While beauty & fashion is a profitable sector to explore, the competition is too high as well. Try to think beyond this unless you have the required expertise and have a solid plan to beat the tough competition
Simply, follow this step to make the right starting –
Decide your expertise/niche → Decide the type of products that comes under this category → Research on the relevant market → Decide your audience → Have a clear understanding on the competition → Point out your strengths to secure your position
This will give you a clear path to follow from the very beginning and help you succeed in the long run.
2. Select the Right Live Streaming Platform
You must know that the foundation of a live e-commerce business is a robust live streaming platform. The task to choose the right platform can be quite challenging as there are a lot of live streaming service providers available in the market.
The common questions that may arise are –
- How can the live streaming platform cater to your business goals?
- Whether the features/solutions offered by it can be aligned to your live e-commerce business goals?
- Does the live streaming platform provide a specific solution for the e-commerce industry?
- How secure is it?
- What are the additional features/solutions offered by it?
Moreover, you must ensure the following pointers while choosing a live streaming platform –
- It provides with a dedicated solution to increase your brand visibility
- Offers video e-commerce and podcast solution
- Lets you seamlessly integrate with social media platforms for optimized result in terms of audience reach, engagement, sales, customer acquisition, and others
- Allows you to access real-time analytics to improve your live e-commerce business further
- Lets you live stream from the nearest live streaming server for each of your audience so that they get to view high quality, buffer-free live streaming irrespective of their locations
- Enables you to launch your own branded live streaming platform to create better brand awareness, recognition and market positioning
These are some of the must-have solutions that you must look for while choosing a live streaming platform. If you opt for a industry-grade live streaming platform like Muvi Live, then you will get to leverage not only the above-mentioned solutions, but more. You will be able to open features like user generated content to let others contribute with their products on your live e-commerce store and share revenue, advanced user engagement tools to engage them with ratings & comments, 24/7 support and many more.
Choosing a proper live streaming platform implies that half the task is done and you must not compromise with its features to make your live e-commerce business successful!
3. Opt for Interactive Live Chats
Interactive live chats are always a better option than other communication channels such as emails, phone calls etc. For live e-commerce makes it easier for the customers to reach out for any instant query regarding the products right then and there. Statistics say that 40% of the customers who use live chats are more likely to make a purchase from your live e-commerce store.
Additionally, there are other advantages too such as you can have better insights on customer requirement, behavior, and buying patterns. It helps humanize the brand to make your customers feel more connected, helps build customer trust & loyalty, and others.
4. Utilize Social Media
To maximize audience reach and increase the sales for your live e-commerce, you must utilize all social media platforms. As per statistics, there are more than 4.62 billion social media users around the world making it 58.4% of the global population as of 2022. Unless you target diverse social media like Facebook, Instagram, Twitter, and others, it is impossible to increase the reach and boost sales.
As discussed above, a sound live streaming platform will give you this facility to easily integrate with social media and make the best out of your live e-commerce business by simultaneously live streaming to multiple sites/sharing your videos over those platforms.
5. Analyze the Outcomes
Make it a regular practice to analyze the outcome of each of your live streaming sessions so that you can improve the next one further. Keeping track of the key performance indicators (KPIs) such as audience engagement rate, sales, revenue, bounce rate, site traffic increase etc. are some of the KPIs that give insights on how your live e-commerce business is doing.
If you have opted for the right live streaming platform, this solution will come in-built and you won’t need any additional tools/ need to invest anything extra to get such analytical reports as frequently as you want.
The live e-commerce industry is definitely highly profitable and the demand for online live shopping is showing an upward trend. To capture the growing opportunities and leverage it fully, you need to implement your live e-commerce business idea strategically.
We hope the above guide will help you start your live e-commerce business as well as convert your goals into success. Alongwith the proper plan, an enterprise-grade live streaming platform is all you need. Muvi Live is one of its kind of live streaming platform that can cater to all the requirements your live e-commerce business may have. Take a 14-day free trial today and see how easy & fast it is to launch your own live e-commerce platform (no credit card required)!