13 Nov Livestream Shopping Report + INFOGRAPHIC
What Is Livestream Shopping?
Livestream shopping is a way for consumers to purchase items in real-time while the host of a live event is explaining the products and their features. Viewers can purchase the item from their phones or other devices as the host describes it.
The host can normally answer questions live, which, in turn, creates a positive user experience. Livestream shopping is often used by brands that also leverage Influencer Marketing. Some of these shopping events regularly draw attention when hosted by known influencers.
Livestream shopping can happen with the help of various platforms that facilitate Livestream shopping, such as GhostRetail or even Livestream Live Shopping by Shopify. Many social media platforms offer livestream shopping capabilities. Pinterest TV, TikTok Live, Instagram Live Shopping, Amazon Live Shopping and YouTube make it easy to host live shopping events.
One of the main benefits observed is that it propels potential buyers in their journey by being able to preview any products live and have their questions answered. Livestream shopping is an interactive way for customers and brands to interact, providing a personal touch as opposed to traditional e-commerce.
We recently conducted a study on the state of Livestream shopping; continue reading to learn more.
Our Livestream Shopping Survey
We ran a survey with 1,000 users based in the US and 1,000 based in the UK. Our target audience was users between 18 and 67 years old. Our goal was to understand their preferences in terms of livestream shopping, social commerce, live shopping behavior, livestream shopping approach and, overall, if and how they shop during a live video event.
EMBED THIS INFOGRAPHIC:
<a href="https://theinfluencermarketingfactory.com/livestream-shopping-report/"><img src="https://i.ibb.co/0VRBdFv/livestream-shopping-infographic.jpg" alt="Livestream Shopping Rerpot by The Influencer Marketing Factory" border="0" /></a>
Livestream Shopping Findings
From our exclusive Survey
- In the US, 36% of our study participants confirmed purchasing something during a livestream shopping event
- while 25% of our UK respondents confirmed the same.
- In the US, the two leading age groups who responded yes were those between 19-25, followed by 36-45 and ages 26-35 not far behind. But get this, if brands believe that livestream shopping is only for millennials or gen Z, they couldn’t be more wrong.
- In the US, 34% of our respondents aged between 46-55 & 24% of our group aged 56-65 confirmed purchasing a livestream event.
- In the UK, we have found that the majority of purchases made during a livestream event were for age groups 19-25 and 26-35. Although livestream shopping is being widely adopted in both regions, the platforms of preference vary between the regions and this purchasing method is more popular in the US.
The preferred platforms for Livestream shopping in order of preference for the US:
- Facebook Live 26%,
- Instagram Live 19%,
- TikTok Live 18%,
- Amazon Live 18%,
- Pinterest 6%,
- Others 4%,
- Whatnot 3%,
- ShopShops 3%,
- TalkShopLive 2%,
- Bambuber 1%
The preferred platforms for livestream shopping in order of preference for the UK:
- TikTok Live 30%,
- Amazon Live 18%,
- Facebook Live 17%,
- Instagram Live 16%,
- Pinterest 6%,
- Others 4%,
- Whatnot 2%,
- TalkShopLive 3%,
- NTWK 2%,
- ShopShops 2%
In the US, Amazon Live Shopping is taking shoppers by storm, creating a unique experience for buyers by collaborating with celebrities and mega influencers for Amazon Prime. Think QVC on steroids. For Prime Days 2022, Amazon decided to partner with celebrities and influencers to livestream events. They worked with celebrities such as Porch Williams, Lara Kent, Joe Mele, and Hilary Duff.
According to the company, Prime Days streams had more than 100 million views, and thousands of creators streamed throughout Prime Day 2022. Now, if this doesn’t make a case for both livestream shopping and influencer marketing, we don’t know what would.
From our research on Livestream Shopping
Our findings indicate that “Quality of product” was the top reason for livestream shopping for respondents both in the US and the UK. Live video is the future of shopping. It’s never been easier to get a feel for what a product is like and whether it’s right for you.
The best part? You can do it from the comfort of your home. Livestream shopping allows buyers to visualize a product and learn about its quality, unlike any other online shopping experience.
Based on our findings, free delivery came in second, discount coupons came in third, and being able to see reviews from other shoppers in real-time came in fourth for both the US and UK respondents. These top four reasons as to why someone might shop during a livestream shopping event is a clear indication that the quality of the product, recent feedback from clients and being competitive with discounts and special offers is crucial to maintain a competitive edge in today’s market.
Social Media and Livestream Shopping
How can you maximize interest for your upcoming livestream shopping event? If we take Instagram, users can schedule a live event from one hour to three months away. This gives you ample time to start building hype on the platform. Just like any other social media marketing efforts, you want to build hype about your upcoming events across your various channels and with any influencers that you may be working with.
What is the key to hosting a successful shopping event? Engagement is absolutely crucial, and so is a host that’s relatable, inviting, charismatic and ideally known to your audience. Some brands work with their team members to host events, this can work if your team members are known faces of your brand. Ideally, you want to work with an influencer so that you can also benefit from their audience.
Knowing your options in terms of what platforms to use, in addition to knowing the streaming capabilities of each platform, will help you plan for success. For example, TikTok added LIVE shopping to their product offering in September 2021, allowing users to purchase products without leaving the app through livestream events, usually hosted by influencers. The platform hosted the first multi-brand event in December 2021 called “On Trend”.
Our research showed that 27% of livestream shoppers in the US spent between $20-$50 when attending an event. 24% spent $50-$100, and 16% spent between $100-$200. Furthermore, from our UK respondents, we found that 31% spent between $10-$20, 29% spent between $20-$50, and 23% spent between $50-$100.
Apparel and fashion, personal and beauty, consumer electronics, food and beverage, and home furniture were the top 5 product categories in both regions. We believe that both apparel and beauty and personal and beauty products have a unique opportunity to do well during livestream shopping events due to the price points.
Livestream Shopping Opportunities
Both Nano & Micro-Influencers can drive a lot of niche results for brands who may not be able to collaborate with macro or mega influencers based on their budgets.
Another major benefit of livestream shopping that we love to share is the sense of community that you are providing for customers. They can ask questions, share their own experiences with the product, and talk about what they would like to see from you in the future.
Although we love AI, shoppers put a lot of value in being able to see and interact with someone. People crave that human connection, and livestream shopping is a great opportunity to provide this to your customers. Working with an established agency like The Influencer Marketing Factory can help you create the best livestream shopping strategy to allow you to maximize your reach and revenue.
Building Trust With Your Audience
Based on our study, we have found that one of the top four reasons why people shop during livestream events is that they can observe reviews in real-time. This is when past and current purchasers leave reviews and comment on the various products in the live chat.
Another of the top reasons was the ability to interact with the host. Having the opportunity to interact and ask questions about the product is a great way to build trust fast.
That’s a lot of opportunities for trust-building during any form of live video! If you’re live, then it means that you’re present and available for your audience right now, which builds trust—and if they have questions or concerns, they can reach out while the livestream is still going on, knowing that they’ll be heard and answered immediately.
And if you’re doing things like taking their questions live or addressing feedback that come up during the stream? That’s another great way to build trust! You’re showing that you care about your audience’s needs and wants—and then following through on those needs and wants by taking action based on what they’ve told you just moments before. To be able to confidently speak on the various products featured, it’s important to ensure that the influencer that you partner with has a clear understanding and love for your product. This is why working with an influencer marketing agency is key.
The Future of Livestream Shopping
Social media and livestream shopping are a match made in heaven. We’ve been watching livestreaming go from a niche hobby to a full-on phenomenon in just a few short years, and there’s no sign of it slowing down.
When you think about how many people are using their phones as their primary device for shopping—and how many of those people are already tuning into live streams for entertainment and other purposes—it becomes clear that this is something that’s going to skyrocket in the years to come.
The best part? There are already tons of companies out there doing incredible work with this type of online selling. We love seeing them take risks and try new things, then learn from their mistakes and improve their strategies as they go.
We’re excited about where livestream shopping is headed—and we hope that you are too! If you have any questions or would like to learn more about how we can help your company reach its full potential in this space, we want to hear from you.