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Engaging, Demonstrating, and Selling in Real Time.

Added: Remember those teleshopping commercials that aired during non-peak hours on cable TV? Well, they’re making a comeback, reimagined as live streaming, where a brand or the streamer they collaborate with broadcast real-time video to sell products or services. It enables them to engage with their audience through platforms like TikTok, Instagram, YouTube, and Twitch. They can showcase products such as clothing or tech, demonstrate their functions and fit, provide a quick way to purchase them, and address any doubts or questions a consumer may have.

In this blog post, we will delve into the benefits of live streaming in e-commerce, supported by compelling statistics and data that highlight its growing significance in the industry.

Added: Since the arrival of 4G and the decrease of mobile costs, live streaming has had a growth spurt, solving the challenges TV shopping brought like high product costs and little room for interaction with consumers. In recent years, live streaming in e-commerce has risen to prominence as a dynamic and effective way for businesses to engage with their customers, showcase products, and boost sales. While the phenomenon is not as widespread in Europe, China alone saw its live streaming market soar to a staggering $125 billion in 2020, as reported by Coresight Research. In the past year, two-third of Chinese consumers made purchases through live streams, indicating a significant shift in consumer behavior.

  1. Real-time Interaction: Live streaming allows businesses to connect with their audience in real time, creating a sense of authenticity and personal engagement. This interaction can involve answering questions, addressing concerns, and building a stronger connection with customers. Besides this, an interactive live stream also helps create a community by having users interact with each other during the event, which leads to increased engagement (see number 3 of this list.
  2. Product Demonstrations: E-commerce live streams provide a unique opportunity to showcase products in action. If a user can’t go to a store to actually see the product, a video offers the next best way of creating the feeling of tangibility. Customers can see how items work, look, and perform, offering them a more immersive shopping experience compared to static images or text descriptions.
  3. Increased Engagement: Live streams are captivating, holding viewers’ attention for longer durations than traditional marketing content. The dynamic nature of live events encourages viewers to stay engaged throughout the stream and the sense of community helps tie them to the brand.
  4. Urgency and Scarcity: Businesses can create a sense of urgency by offering limited-time promotions or showcasing products with limited stock during live streams, playing into people’s FOMO. This urgency often leads to immediate purchases, driving sales.
  5. Storytelling: Live streams offer a platform for brands to tell their story, share their values, and build a more personal connection with their audience. This emotional connection can foster brand loyalty and the live stream is a great way to inspire, inform and entertain your viewer all at the same time.
  6. Audience Reach: Live streams can be broadcasted on various platforms, allowing businesses to reach a wider audience and potentially attract new customers who may not have engaged otherwise. The sales of 700 pairs of merchandise in a three hour live stream by Zoe Zhang and Mark Yuan on Taobao Live is a good example of what this wide audience reach can help accomplish.
  7. Feedback and Insights: Live streams provide real-time feedback from viewers, which can be invaluable for businesses looking to improve their products and services based on customer input. Brightstone published the outcomes of a global survey, showing that 46% of the consumers made a purchase after watching a branded video.

Of course, the effectiveness of live streaming in e-commerce depends on factors such as the target audience, the nature of the products being sold, and the quality of the live stream content. Since all consumers will share the same communication platform during a live stream, the providing of information can come across as repetitive when not well executed. As with any marketing strategy, analyzing data specific to your business is crucial in determining the impact of live streaming on your e-commerce efforts.

In conclusion, live streaming in e-commerce has emerged as a compelling tool for businesses to engage, educate, and ultimately sell to their customers. Its real-time interaction, product demonstration capabilities, and ability to create urgency make it a valuable addition to any e-commerce strategy. Backed by compelling statistics, the rise of live streaming in e-commerce is a trend that businesses should not overlook, as it continues to reshape the way we shop and connect with brands online.

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