Live commerce: A trend born in China's live streaming boom

August 9, 2024
5 min
Video Education
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The COVID-19 pandemic significantly altered consumer behavior. One of the most notable changes was the surge in live media consumption. People turned to live streams for entertainment, news, and even social interaction.

what is Live commerce

Retail gets a reboot: Leveraging live media | Rise of live commerce

The retail industry and marketers were quick to recognize the potential of this new reality. They saw live media as a powerful tool to re-engage customers and drive sales in a rapidly changing environment.

Live commerce trends

In the above graph initially, search interest market share was minimal, but starting around 2015, there was a gradual increase in awareness and adoption.

This trend accelerated dramatically in 2020, signaling a significant surge in popularity. Importantly, the high level of search interest has persisted, indicating that live commerce remains a dynamic and relevant trend.

The story of live commerce started in China, drop shippers and model influencers leveraged live streams to showcase products dynamically, fostering real-time interaction with viewers through question-and-answer sessions. This approach didn't just showcase products, it created a sense of community around them, fostering trust and excitement.

This innovative blend of entertainment and shopping proved wildly successful in China, blurring the lines between the two and paving the way for live commerce to become a global phenomenon.

Live commerce merges the thrill of live streaming with the convenience of online shopping, enabling real-time product demonstrations and immediate purchases.

Tech giants turn up the heat on live shopping

The meteoric rise of live commerce in China didn't go unnoticed by Silicon Valley tech giants. Recognizing the potential of this interactive shopping experience, they quickly adapted and integrated live commerce into their platforms, propelling the trend to a global scale.

 Live commerce solution by TikTok


TikTok launching it's live shop

TikTok, the short-form video sensation, was among the first to capitalize on the live commerce trend. Leveraging its vast user base and strong engagement, TikTok introduced live shopping features, allowing influencers and brands to highlight products in real-time. This platform, with its focus on entertainment and community, proved to be an ideal environment for live commerce to thrive.

Live commerce solution by YouTube

YouTube, already a dominant force in video content, expanded its offerings to include live shopping. With a focus on longer-form content and detailed product reviews, YouTube positioned itself as a platform for more considered purchases. By integrating live commerce, YouTube aimed to enhance the shopping experience for its audience while providing new monetization opportunities for creators.

Meta, with its emphasis on social connection, took a slightly different approach. Facebook and Instagram, under the Meta umbrella, introduced live shopping features to tap into the power of social influence. By enabling users to purchase products directly from their friends' recommendations, Meta aimed to create a more personalized and immersive shopping experience.

These tech giants, each with their unique strengths and audience, brought live commerce to a global stage. They transformed how people shop by combining entertainment, social interaction, and e-commerce into a seamless experience. This shift marked a significant evolution in the retail industry, as brands and retailers embraced live commerce as a powerful tool to reach consumers and drive sales.

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The second wave of live commerce

The first wave of live commerce was dominated by large platforms like TikTok, YouTube, and Instagram, transforming them into virtual shopping malls. The second wave is characterized by a more decentralized and personalized approach, with individuals and businesses of all sizes leveraging live streaming to sell directly to consumers.

Building live commerce into your platform

Individual creators and influencers

Creators are building their own live commerce channels and websites, forging direct connections with their audiences. They can offer exclusive products, personalized recommendations, and behind-the-scenes access, fostering a deeper level of engagement.

Example, Canada's Foodiez.Live is empowering food and beverage industry experts to monetize their knowledge. Chefs, sommeliers, and bartenders can now create their own livestreams, offering viewers exclusive access to their expertise.

From live cooking demos and wine tastings to mixology tutorials and Q&A sessions, the platform provides a space for professionals to connect with audiences and share their passion for food and drink.

Direct-to-consumer (DTC) brands

DTC brands are bypassing traditional retail channels by hosting live shopping events on their own websites. This allows for greater control over the customer experience, data collection, and brand storytelling.

marketplace launching live commerce solution on their platform

Marketplaces and e-commerce platforms

Online marketplaces like Amazon and eBay are integrating live shopping features, enabling sellers to interact directly with buyers.

Niche marketplaces, such as those focused on fashion, beauty, or electronics, are also adopting live commerce to enhance product discovery and sales.

Short video and UGC platforms are experimenting with live commerce, allowing users to buy and sell products within their communities. This boosts engagement and revenue for the platform as well as for individuals.

Now let’s discuss if you are building a live commerce feature into your platform or website what you should consider if you are building a live commerce feature.

Building a live commerce feature inside your app through API

Core functionalities of live commerce solutions

Live streaming integration: Ensure seamless integration with popular live streaming platforms or build your own.

Product display: Clearly showcase products with detailed descriptions, images, and pricing.

Shopping cart and checkout: Implement a smooth checkout process that integrates with your existing payment gateway.

Inventory management: Maintain accurate product stock levels and handle out-of-stock situations.

Interactive features: Incorporate features like live chat, Q&A sessions, polls, and product demos.

Seamless checkout: Optimize the checkout process to minimize cart abandonment.

Mobile optimization: Ensure a seamless experience for users on mobile devices.

Tech infrastructure for live commerce solution

Scalability: Build a platform that can handle increased traffic and transactions during live shopping events.

Performance: Optimize the platform for fast loading times and smooth video streaming.

Security: Implement robust security measures to protect user data and prevent fraud.

Data & QoS analytics: Collect and analyze user data to optimize live commerce performance.

Using FastPix to power your live commerce

FastPix delivers high-performance live streaming and shoppable video solutions, empowering businesses to create engaging and interactive shopping experiences. Our platform offers low-latency streams, simulcasting capabilities, and the ability to host concurrent live events. With a scalable infrastructure and flexible pricing, we help you optimize costs while maximizing reach.

Leveraging advanced in-video search and AI, we transform live streams into searchable content. Our technology automatically tags and categorizes live content, making it easily discoverable by viewers. This enhances audience engagement and drives product discovery.

Contact us to learn how FastPix can elevate your live commerce game.

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