Getting Started with Live-stream Selling

During the 2022 holiday shopping season, Amazon hosted many live streams promoting a wide range of products. Amazon Live Events — a form of live-stream shopping — has thousands of creators and influencers selling products.

Live-stream selling is a proven marketing strategy. A personable host demonstrates products while shoppers can ask questions or talk about their experiences. It’s similar to QVC and the Home Shopping Network, except the audience is online.

Live-stream shopping began in China around 2017. It has since migrated to the United States and Europe. The tactic will generate $68 billion in U.S. sales by 2026, per Coresight Research. Merchants should act now, especially those who target Gen Zs and younger shoppers.

McKinsey Digital reports that 36% of live-stream purchases are apparel and fashion items; beauty accounts for about 8%, followed by fresh food, electronics, and home décor.

Amazon Live is home to thousands of content creators reviewing products for direct purchases.

New Conversion Tool

Live-stream selling focuses on shoppers’ desire to know more about a product and their tendency to impulse buy. It provides instant answers, minimizing the guesswork.

A well-presented live stream:

• Builds a community by engaging and communicating with consumers.
• Entices viewers to click the calls to action.
• Generates sales.
• Reduces pre-purchase support requests, including live chat.
• Lowers returns by providing essential details and answers.

Getting Started

There are four primary ways to incorporate live-stream selling.

• Via social media, selling directly on that platform or linking to the online store.
• On Amazon Live for marketplace sellers (at no cost).
• On a third-party live-selling network, such as YouTube, Firework, Vimeo, and others.
• Directly from the ecommerce site using a provider, for a fully-branded experience.

All methods require analysis and planning to determine the best for your audience.

American Girl live streamed its “Girl of 2022” event, pinning products during the feed. Source: Firework.

Costs associated with live-stream selling include:

• Monthly charges for hosting the events on-site, ranging from $40 to $20,000, depending on features, attendance, and more.

• Production expenses. A simple setup using a smartphone and ring light can run less than $50. But streaming from a professional-grade studio requires proper lighting and sound. Split-screen streaming takes additional work unless you loop through Zoom or similar.

• Fees to a spokesperson or influencer, which can cost more than enlisting employees to go on camera.

• Marketing, a must for live events. Deploy announcements via email and social media. Consider advertising, too.

Detailed analytics are crucial for live selling. Ensure your platform or provider can track:

• Abandonment rate,
• Points of entry and exit,
• Viewing times,
• Chat activity, ideally by communication types, such as host questions, testimonials, images
• Viewer reactions — like, love,
• Call-to-action clicks and funnel performance.

Also important are moderation tools, chat exports, and replay capabilities.

Not Too Distant

Livestream shopping will be an expected norm in the not-too-distant future, connecting online consumers as never before. This engaging content will be critical for ecommerce success.