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Livestream Shopping: The Next Big Thing in Retail?

June 24, 2021

Editorials

Livestream Shopping: The Next Big Thing in Retail?

If you think eCommerce has replaced brick-and-mortar shops, think again. While eCommerce offers great convenience, it still doesn’t match the consumer-product connection.
But, same as everything else, the online shopping industry is continuously evolving. Livestream shopping somewhat manages to provide that connection that an eCommerce store doesn’t.  
In this article, you’ll know why we think that livestream shopping is the next big thing in retail. And, why you should be taking it seriously for your retail business.
Let’s dive in.

The Evolution of Retail


The retail industry has seen a drastic shift in the last decade. What consumers used to buy in retail shops is now delivered to their doorsteps.
Thanks to our busy lifestyles and the one-click purchase convenience, most people prefer buying from eCommerce stores.
However, there is still something missing in the eCommerce store model. A buyer can’t feel or touch a product unless it gets delivered to their home.
This is why there is a high return rate in eCommerce shopping. And, consumers prefer buying certain products after physically checking them.
And, while you can show your product in a recorded video, it still doesn’t offer the one-to-one connection a livestream offers.
So, inevitably, livestream is proving to be quite effective at educating the prospects about brands and their products.

What’s Livestream Shopping?


Traditional retail stores are great for one-to-one interaction with the brand and products. Whereas, eCommerce allows you to expand your reach virtually to anywhere in the world.
As a brand, you are not limited by location in eCommerce. Livestream shopping offers a blend of both.
Livestream shopping is when consumers interact with a brand or its products digitally and make live buying decisions.
It could be from anywhere your customers can access your live video.
Livestreams allow shoppers to see the products in action and satisfy themselves before going through with the purchase.
A livestream enables you to educate your prospects about your products more effectively. Done right, livestreams can be a great way to maximize a brand’s sales or conversions.

Why is Livestream Shopping the Future of Retail?


There should be no doubt that the future of retail is digital. And, livestream shopping is an important part of this digital revolution.
It’s important to understand what makes livestream shopping so much effective as compared to one-click eCommerce stores.

It Lets Consumers Make a More Informed Decision


When it comes to helping the prospects make an informed decision, livestream shopping takes the lead. One of the most obvious reasons why statistics show a high return rate in eCommerce is the lack of necessary education/information about the products.
And, while a recorded video can also help people know a lot about a product, a livestream lets them clear their minds through questions.
Moreover, a major reason why livestreams are in popularity in the retail industry is that prospects get to see the product live.
You can explain a feature but showing it will always be more effective. When consumers can see a product in action, they can put their trust in the product more easily.

A Livestream Let You Use FOMO (Fear of Missing Out)


Another reason why livestreams are so effectively utilized by brands is that they are immediate in nature. This means viewers can only act on your offers as long as you are live.
Of course, you’d have to offer something to drive action from them. For instance, a live contest where the winner gets a special discount on your flagship product.
Another example would be to offer a product bundle at a lower price point during the livestream. Livestreams leverage our innate psychology of not wanting to miss out on something good cleverly.

A Livestream Can Reduce Product Returns


Product returns can be quite damaging to a business. They don’t only hurt your profits but can also be harmful to your reputation.
Livestreams can help you virtually eliminate the possibility of product returns. How?
Simply put, the more your prospects know about your product, the more confident purchase decision they would make.
And, the more confident they feel about your product, the lower the chances that they’ll return it. So, livestreams can not only convert your audience but can also help drive well-informed and confident purchases.

It Allows Brands to Connect with Their Prospects


The one-to-one nature of livestreams enables brands to connect with their potential customers on a more personal level.
Consumers see livestreams as an honest representation of a product or brand. With a livestream, you show the real picture without having to market your product at all.
Your prospects can build a relationship of trust with your brand. They feel more connected to your brand and product, which leads to brand loyalty and long-term customers.

Livestreams are Cost-Effective


Compared to a recorded video, implementing a livestream effectively is an inexpensive process and brings better results as well.
For a livestream, you don’t need to edit your videos, which saves you time and money. Plus, you don’t need to have very sophisticated equipment to carry out an impactful livestream.
Just a decent camera, professional software, and a fast-enough device can do the job. However, if you have the budget for it, using a higher-quality camera is always a plus.

Future of Retail


The fact that China has been leveraging livestreams quite effectively has encouraged the west to jump on the bandwagon of livestream.
In 2019, only China’s market share of livestream commerce was $1.4 Billion.
A lot of brands are now using livestreams to get their business in front of more people and to increase their brand awareness.
The successful implementation of livestream by Chinese eCommerce companies shows that livestream shopping isn’t something that’s going to fade away in the future.
According to statistics, China is projected to sell around $400 Billion worth of products by the end of 2022.
The success of livestream shopping will mainly depend on whether people will continue to shop online. And, that trend seems to be going upwards in the future.
And, while Asia has been reportedly leading the live commerce market, giants from the west are also following suit.  

A prominent reason why we are seeing an upward trend in eCommerce is that consumers don’t want to visit brick-and-mortar shops anymore.
And, when it comes to live commerce, it goes a step further and offers something only brick-and-mortar shops could offer.
Live commerce allows consumers to see the product live, but digitally. It’s effective because it emulates the brick-and-mortar experience to some extent.
Since the pandemic, people have not been able to go out with confidence and shop for their favorite products. This is one reason why livestream shopping is taking the central position in the online shopping industry.
If you are thinking of leveraging this tried and tested selling strategy for your business, you have a lot of options.
However, not all platforms will provide you good control over your business livestreams. You see, giants like Facebook won’t give their data to the users.
So, you’ll be depending on them for virtually all your user data. On the flip side, if you opt for a dedicated livestream platform, you’d be controlling your audience data and use it for further growth.
If you think you’d be better off having full control, Jumble’s livestream software is for you.

Final Thoughts


Gone are the days when physical retail shops were the only options for consumers to shop. The unprecedented growth of eCommerce in the last decade has made shopping a breeze.
Consumers don’t have to do anything more than a click of a button and the product reaches their home within hours.
Livestream shopping is a relatively new concept and is proving to be quite impactful for brands. The fact that consumers can see the products in action lets them make confident buying decisions.
The more you inform your prospects about your product, the higher your chances of driving conversions. And, livestreams make that pretty easy for a brand.
The retail market first transformed from brick-and-mortar to eCommerce and now integrating live commerce as well.
If you aren’t using livestream for your brand, now would be the time. Because it’s the future of retail. Want to use dedicated and powerful livestream software? Join Jumble!

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