Streaming commerce: a successful concept for your online business?

Experiencing products up close, having questions answered directly and a social experience with every purchase: for a long time, online listings were unable to match the in-store experience, where you can talk to sales staff and pick up products in person. However, with the emergence of livestream shopping, a trend has developed in recent years that brings the interactive shopping experience to life online – and has long since established itself internationally in the eCommerce landscape thanks to billions in sales and numerous enthusiastic customers. In Germany, however, the topic seems to have stalled in recent years. In this article, we clarify the question of whether live shopping experiments are even worthwhile for retailers today and what needs to be considered.

Where does the live shopping trend come from?

Live shopping – selling online via live broadcasts – has been common practice in China since 2016. Presenters with millions of followers present products in a live stream via social media or special platforms, which can be clicked on and ordered at the same time. While viewers receive a detailed product presentation, they can ask questions in the chat, which are answered in real time. Special promotional offers with short availability make the sales experience perfect.

While the topic is aimed almost exclusively at end consumers and is very similar to the well-known teleshopping, certain aspects differ. For example, streaming allows potential buyers to participate interactively via live chat. In addition, live streams can be perfectly tailored to fans and turned into high-profile events thanks to their customizability. Especially during the 2020 coronavirus lockdown and in subsequent years, the topic offered a welcome change from traditional online stores and was also adapted in German-speaking countries by numerous well-known retailers such as Media Markt Saturn, IKEA, Douglas, H&M and Alternate.

What makes interactive online shopping experiences so exciting

• Product launches or special offers can be specially staged during live shopping events and presented exclusively to interested viewers.
• As a social event with direct interaction, livestream shopping can break down barriers and create a deeper connection between customer and brand.
• The detailed presentation of products, where moderators can respond to questions and suggestions from the audience in real time, is reminiscent of shopping in a store.

Will livestream shopping still be relevant in 2024?

A look at China reveals that live shopping has become an integral part of online business there and is experiencing steady growth. Here in Germany, on the other hand, the topic is not really catching on. Instead, the hype surrounding streaming commerce seems to have faded over the years, while the majority of shoppers prefer to remain loyal to the established stores and marketplaces they trust. In addition, the social media platform Instagram discontinued the shopping livestream function it was testing in 2023. TikTok, which is used for short video formats, has also recently shelved plans to introduce new shopping functions in Europe.

This raises the question: are livestreams even interesting for retailers in the West or has the train long since left the station? There is no clear answer to this, as online customers of many product niches continue to follow the streams of retailers, merchants, brands and influencers with a high level of engagement and are still eager to take advantage of special listings. Offering your own products in the stream can definitely be worthwhile. However, in order to use the format effectively for you and achieve the desired conversion rates, there are a few requirements that you should fulfill.

An attractive sales channel with the right strategy

Ask yourself whether your target group is even suitable for attracting potential customers to a livestream. Popular categories include clothing and cosmetics in particular, but also jewelry, technology, toys and decorative items.

If you want to get started with streaming commerce, you can start with the following tips:

• Preparation and planning
  
  
  
  • Objective: Clarify the objectives of the livestream – whether it is to increase sales, product awareness or customer loyalty.
  
  
  • Technology and equipment: Invest in good camera and sound equipment. Stable internet is also crucial.
  
  
  • Platform selection: Choose the right platform that reaches your target group. This can be a social media platform or a specialized streaming platform such as Livescale, Bambuser, Channelize or MOVEX.
  
  
  
  
• Contents and presentation
  
  
  
  • Authenticity: Be authentic and approachable. Customers appreciate honest and transparent presentations.
  
  
  • Interactivity: Actively involve your viewers, answer questions in real time and respond to comments.
  
  
  • Visualization: Use high-quality images and videos to present your products in the best possible way.
  
  
  
  
• Promotion and marketing
  
  
  
  • Advance notice: Advertise your livestream in advance via newsletter, social media and your website.
  
  
  • Create incentives: Bidder special discounts or exclusive products during the livestream to increase participation.
  
  
  • Collaborations: Work with influencers or brand ambassadors to increase your reach.
  
  
  
  
• Technical aspects and user experience
  
  
  
  • Simple purchasing processes: Ensures that the buying process during the stream is simple and smooth and offers common payment methods.
  
  
  • Availability: Ensures that sufficient stock is available for the products presented to enable immediate sales.
  
  
  • Collect feedback: Take the opportunity to get direct feedback from your customers and learn from it.
  
  
  
  
• Follow-up
  
  
  
  • Analysis: Analyze the data and results of your livestream to understand what worked well and what can be improved.
  
  
  • Follow-up: Send thank you messages or exclusive listings to livestream participants to strengthen customer loyalty.
  
  
  • Continuous improvement: Take the lessons learned and implement them in your future livestreams.
  
  
  
  

Final considerations are always that a stream must be switched on at viewer-friendly times and announced in advance with sufficient reach for the campaign to be a success.

If you are well positioned on all fronts here, shopping livestreams can also be a special experience for your customers that brings your products and brand to life in an interactive way and pays off with many sales.