Live-commerce – what is it and what role does it play in marketing?

What is live commerce?

The undoubted advantage of such a solution is direct presentation, as well as easy contact with customers, guaranteeing efficient service. Currently, it is most popular on social media such as Facebook, Instagram or TikTok. In addition, this method is increasingly used by well-known brands, including Sephora, Douglas, Homla, IKEA, Farfetch or Tommy Hilfiger.

Using live-commerce, you can sell almost anything. However, items that can be visually shown or described in detail are particularly popular, including:

• clothes and footwear,
• cosmetics,
• jewelry,
• electronic equipment,
• furniture and interior design accessories.

Currently, the most developed country in terms of live-commerce is certainly China. According to forecasts, in 2023 it was expected to reach 24% of the value of all sales. Meanwhile, in Nigeria it is a relatively new trend. It was popularized during the lockdown, when a significant part of the stores were closed.

Why is live-commerce an effective sales method?

There are many benefits to selling products during a live stream. The most important of them certainly include:

• low preparation and related costs;
• selling a large amount of goods in a short time;
• direct contact with recipients and greater user engagement;
• an exceptionally attractive, realistic, and at the same time detailed presentation of items;
• time-limited promotions;
• building organic reach;
• easy customer acquisition among young people;
• providing viewers with entertainment.

Interestingly, as many as 82 percent of Polish users who have used this form of shopping declare that they are “very satisfied” or “rather satisfied”. Additionally, ⅔ of respondents would make the transaction again.

What the most popular types of live-commerce?

Currently, live-commerce includes many different formats. The most popular include:

• Live auctions: Auctions are a great way to sell off products, while providing customers with great entertainment. They can participate in auctions from every corner of the world. What’s more, popular streams attract many bidders and generate a lot of excitement. Sellers often have a chance to make a bigger profit or sell their old collection quickly.
• Live events: Events are usually used to launch a product or present limited edition goods. This is a great way to promote and get a quick reaction from viewers, also internationally. It also allows you to acquire many new customers in a short time.
• Social media streams: Influencers undoubtedly have a big impact on the purchasing decisions of their recipients, and at the same time make the advertised products more tangible. It is no wonder that live streams have found their way into the e-commerce industry. This format with well-known creators is especially popular among young people who use social media a lot.
• Modern marketplace functions: Sales platforms such as eBay are increasingly introducing new functions to increase user engagement. Recently, online shopping during live streams has become particularly popular. They provide real-time interaction between the seller and the buyer without having to leave home.
• Expert interviews or Q&A: Answering consumer questions in the form of FAQs is a method that is increasingly being replaced by YouTube video broadcasts and live podcasts. As part of the Q&A, it is worth including the most common questions, which will be answered by a qualified specialist. Such a format will certainly encourage recipients to discuss in the comments and increase trust in the brand.

Live commerce – how to get started?

To effectively use live commerce to sell products, take the following steps:

Get to know your customers and their habits

The first step to using live commerce in marketing is to define your target group. This largely determines whether it will be a good way to increase sales. Currently, this method is particularly popular with young people, so it will certainly be used in the fashion or technology industry. Once you have determined who your customer is, consider what communication style will best reach them and what time to organize an event to gather a large enough community.

Take part in other broadcasts

This is a great solution for sellers looking for inspiration. Take a look at other companies, how they stream and how customers react to it, as well as what users are willing to buy. Write down your conclusions, which will make it much easier to plan your own live sales format.

Develop and action plan and prepare the necessary materials

The live stream formula is a fully flexible issue, but it is still worth having an appropriate action plan. Depending on your individual needs, you can organize a single, unique event or create a whole series of meetings. Take into account your budget and technical issues. Remember that you need basic equipment and a communicative host to conduct a professional broadcast.

Include some side attractions to diversify the live stream

The more attractions during live sales, the larger the audience will be. For this reason, do not be afraid to experiment and introduce various types of diversification. Organizing an auction or competition on the video will certainly be an interesting idea. Use your sense of humor, authenticity and imagination to create a unique experience for your viewers.

Save your recordings and analyze the effects of your actions

It is worth saving all live broadcasts, which is beneficial for both parties. In the case of customers, it allows you to watch the recording and return to it at any time – if they have any doubts, they will calmly consider their purchase. At the same time, it is an excellent form of promoting the presented products. Remember to analyze the results and optimize your activities in order to achieve sales success.