Category: Live stream shopping

Live commerce and Live Shopping Podcast

In search of a new resource to help your ecommerce business? My bet is a live shopping podcast would be the perfect find. That’s why I’ve created one. In the past year or so I’ve been digging really deep into how digital commerce can become better for small and mid sized business. Right now huge brands like Amazon, Walmart or Alibaba are covering too much of the market for the “rebels” to stand a chance.

Small online stores, eCommerce entrepreneurs and direct to consumer small manufacturers need better ways to sell online. Right now you might optimize your page speed or Google SERP, maybe add a better product but trough be told …

Most ecommerce sales are in the hands of very, very few people

Playing in the same league as Amazon doesn’t get you very far as they’ve been losing money for the last 20 years or so, just to gain market share. Spending money on Facebook or Google Ads won’t do much better. As a small company or entrepreneur you don’t have much options into how you can beat the big boys, even in small niches. But you do have one big thing: you are a real person, with a passion for what you are doing. And this can be big. You can be the real you, online and earn big for it.

The solution: live commerce and live shopping

So how do you make your personality shine through your web store? The solution is simple: by using a thing called live commerce or live shopping. I’ve wrote a bit on the background in a previous post. In a nutshell it’s you, live streaming a product presentation to customers, with ecommerce and social (chat, questions) features on top of the video.

Using live shopping for ecommerce stores is still a blur

There’s a small issue with live commerce: most ecommerce entrepreneurs don’t know about it and those who do, don’t know how to start a live session. As such – I’ve started a live commerce and live shopping podcast: Live Commerce World. You can subscribe to it via Apple Podcasts or Spotify.

What will this podcast be about?

“Anyone can start a podcast. Why should I listen to it?” you might say. I hear you.

This is a very specific podcast: it focuses on live shopping and how this changes customer behaviour and why it is a perfect channel for younger generations. The podcast also focuses on why live commerce is this huuuge, emerging trend and how you, as an ecommerce professional, can benefit from it.

It starts off with some tips and tricks my team and I have put together over the last year working with customers all over the world, from companies of all sizes. We’ll continue with interviews and success stories, helping you benefit from live commerce and live shopping.

Listen to the your first episodes below or subscribe via Apple Podcasts or Spotify.

The live shopping assistant is replacing the store associate

2020 saw the emergence of a new breed of commerce – the live shopping experience. In this type of experience customers would interact with a live shopping influencer, watch products in real time and when ready, purchase the products directly in stream. At the center of it sits a very important person: the live shopping assistant or influencer.

We’ll see an increasing number of people switching to this kind of job in 2021.

The live shopping assistant as a new job

As the marketing industry would point out the influencers already do this on the likes of Instagram and Snapchat. I see a new breed of “influencer”. The one who knows a product category very well, is well trained (practice makes perfect) in speaking with customers and … needs a more fulfilling job. A store associate in the age of live: the live shopping assistant.

Can live shopping create jobs for the laid-off retail workers?

In 2020 2 million retail workers lost their jobs to the changes brought in by the pandemic. Many of them had to quickly find alternatives when their stores were closed.

Now live shopping will hopefully bring back some hope and more fulfilling, better paid jobs and gigs. Unlike the traditional store associate job, the live shopping assistant/influencer has the potential to become a real superstar.

In more established live shopping markets, such as China, live shopping streamers such as Viya are gathering millions of customers in their live shows and selling brands such as Tesla, Procter and Gamble. Fun fact – she even sold a package sent to outer space for $6 million.

Listen to “Is the live shopping assistant the future of retail jobs?” below:

Why the store associate as we knew it is not a viable career path anymore?

For a very long time the store associate has been at the heart of brick and mortar stores. Store associates would greet customers, respond to queries, help find products and generally help customers with their purchases.

However, the emergence of digital tools and especially smartphones has rendered store associates almost obsolete. But that may change with live stream shopping and they may become the leading actors in the age of live shopping.

In a recent study by MillwardBrown that focused on customers purchasing athletic footwear we can see just how useful a store associate is these days.

Of those that chose to shop in store, only 12% listed the sales person as one of the reason to purchase offline. Most (88%) chose to try on the product before purchasing.

It’s not just sports shoes. A study by Deloitte Digital shows that customers would rather receive help from an interactive kiosk or their own smartphone rather than a store associate.

As you can see above the willingness to use a smartphone rather than discuss with a sales associate is almost double. Even an impersonal unmanned device such as an interactive kiosk would fare better than a store associate.

How to sell cars online with live stream shopping

The Renault Group used a special approach to selling cars, as car sales have dropped in 2020, due to the Covid-19 pandemic. What’s the secret sauce? Live stream shopping and online car sales.

Listen to this post or read below:

New car sales have dropped by 20% in 2020

According to a study by JD Power and Motor Intelligence, new car sales have seen a 20% decrease in sales in 2020, with a low point of -46% YOY new car sales in April.

This means the auto industry and especially auto dealerships have taken quite a hit. The main culprits: restrictions, Covid-19 related health worries, uncertainty about future income.

Decrease in car sales in 2020

As such consumers have postponed planned purchases. However, the desire for purchasing new cars shows a quick rebound. However, the Covid numbers are still high. Automotive companies needed to find a way to replicate the in-dealership car sales experience, without endangering their staff and customers.

Car sales through live stream shopping

Some companies have taken bold approaches to selling their cars in times of trouble. One such company is the Renault Group. The company launched their new Dacia models (Stepway and Logan) in a live stream shopping session. For three days (2nd to 4th of December 2020), they’ve streamed a real-life presentation of the cars, using hired actors that were briefed on the car features.

Selling cars online
Using a virtual showroom, the company was able to replicate the real life shopping experience for their customers.

The company used a live commerce solution to manage their live showroom and allow customers to ask questions. The flow of information was interactive, from the presenters to the audience, with the audience asking questions that were answered in real-time.

This is one of the first online campaigns for car sales that involves a direct to consumer sales channel. Traditionally, consumers were unlikely to buy through the usual ecommerce sites, given obvious lack in experience features that would convert visitors so prospects or directly buyers.

What does this mean for the automotive industry?

Covid has accelerated the digitalisation of many industries and marketing approaches. Big ticket item sales, such as cars, jewellery or real estate have resisted using digital channels to reach their customers.

What Renault has proven in their Dacia sales is that anything can be sold online, with the right experience. We just didn’t had the right tools. Until now.

Are Google and Walmart going into Live Stream Shopping?

It appears that both Google, through YouTube and Walmart are approaching the idea of live stream shopping, each from a different angle.

YouTube has disclosed plans to turn its large video platform into a shopping venue. It’s already used as one of the largest how-to and influencer lead marketing platforms so it’s only natural that they would consider it.

Why does YouTube live shopping make sense?

Video is big in ecommerce and live video is going to be even bigger. With its following Shopify integration, YouTube will simplify video-lead purchases.

What are the cons?

YouTube is an advertising powered platform. Simply put – it’s pay to play. Let’s say Sephora wants to market their products through YouTube. They would use influencers or their own associates. This leads towards the question – who owns the data? Not the buyer data, which will have to end up with Sephora, so they could at least fulfil the orders but the visitor data. This sits with Youtube/Google. This might have worked 10 years ago but it’s a bit of a no-no with any rational retailer. It still is a great choice for small retailers and this makes Shopify a great choice as a partner.

Walmart buys a 7.5% stake into TikTok. Why?

Oracle and Walmart have received the “blessing” for a 20% acquisition into the hottest media discovery app / social tool TikTok. It kind of makes sense for Walmart to do it but why Walmart? Are they trying to reach an younger audience and look dope?

Nope.

They want to get into live shopping. They’ve previously missed the wagon on a few ecommerce opportunities that took them a decade to get back. Now they’ve noticed the live stream shopping trend in Chine, see the need for it in the North Americas, especially US, and want onboard.

Why it makes sense for Walmart to go into Live Shopping?

Well.. duh. They are the largest retailer in the US, see a great change happening and want on board. Appealing to younger generations is a great plus. But …

What are the cons of Walmart buying into TikTok?

Walmart, as all large companies are very hard to steer. They are a behemoth of a company that takes decades to move. Yes, when they do, they crush opposition, mostly given their logistics supply chain and distribution, which is unbeatable.

Yes, they have amazing staff with amazing ideas (which the TikTok shares purchasing is). But this is still the company that beat Amazon to the ecommerce launch only to forget about the whole ecommerce thing for 10 years, because “that’s not where our customer base is”. So … You might not get a Walmart Live soon.

What is Live Shopping and how big is it? 2021 facts and stats.

Live stream shopping makes every other retail trend in the past 30 years seem small. See what is it, how big is it and what you can expect from it.

Live Shopping is a relatively new commerce technology that uses live video streaming to connect shoppers and merchants.

Listen to this article below or scroll to continue to read.

At the core it’s kinda like Zoom but less conference-like. On one hand you have a sales representative who can be either a store associate or an influencer. On the other hand you have people that want to buy what they’re selling. Or just watch a live product demo.

Think of it this way – you know how Apple announces their products each year, they invite a bunch of people in the room but also broadcast the presentation globally? Take just the broadcasting part, add shopping buttons in the stream and there you have it – live shopping.

When did live stream shopping start?

There is no clear date of when “live shopping” started but it definitely took off quickly in 2019. With the introduction of live media streaming and with a sprinkle of social media influencer marketing, people started watching their idols live, showcasing products.

The live shopping revolution started in China, where mobile penetration and mobile usage habits have made it easier for ecommerce companies to adapt to switch to live shopping. The leader in the domain is Taobao, with 60% of Chinese shoppers having watched at least one live shopping stream on the platform.

Live shopping share in China by ecommerce platform
Source: https://www.statista.com/statistics/1130366/china-most-shopped-live-commerce-platforms/

Soon enough the trend started inching into the western world with leading online retailer opening Amazon Live in February 2019. The move was amazingly timed as in just a few weeks the Covid-19 pandemic stroke. Other ecommerce players are slowly adapting to change.

However, Walmart did think make a bid for TikTok and its obvious angle is targeting younger generations through live video shopping. While a great idea, Walmart is not know for its great execution of amazing ideas.

China reaches 900 million internet users and increases online spending with live shopping

One of the key factors in adopting new technologies such as live video shopping for the Chinese Market was its shear size. The lockdowns have increased internet consumption and adoption, with leading areas being Education (almost doubling to 420 milion users in just 10 months) and Live Shopping.

A report by Qin An, head of the Beijing-based Institute of China Cyberspace Strategy, mentions that 265 million Chinese internet users buy goods via live streams starting 2020. What’s most interesting is that this figure amounts to 47% of total stream-viewing audience.

So one in two video streaming watchers are potential video shopping buyers, with this probably increasing in the future. If the same proportion holds in the US, which has 232 million online video viewers, this means there is a potential market for roughly 115 million new customers that are in need for a better experience.

Covid killed the Retail Star. Will Live Video Shopping revive it?

The Covid-19 pandemic has caused many stores to close temporarily or permanently. The trend is consistent across Europe and US. While the US retailers have been hit first and hardest, with over 14 000 stores closed and almost 2 million retailer workers being laid off, this wave of store closures will reach the EU soon. Initially store chains and SMB retail companies have been partly protected by government intervention and job supporting measures but this is unlikely to continue indefinitely.

The retail market at large has been transformed by ecommerce retailers in the past 20 years. With the recent Covid-19 pandemic, this trend has increased. Brick and mortar retailers are seeing their unit economics being displaced by challenger brands, mostly focused on online shopping and fast fulfilment. Traditional retailers are forced to carefully consider store space, employees headcount and their online operations.

First it took the brick and mortar stores

The Covid-19 pandemic has caused many stores to close temporarily or permanently. The trend is consistent across Europe and US.  While the US retailers have been hit first and hardest, with over 14 000 stores closed and almost 2 million retailer workers being laid off, this wave of store closures will reach the EU soon. Initially store chains and SMB retail companies have been partly protected by government intervention and job supporting measures but this is unlikely to continue indefinitely. 

Retail chains such as H&M are starting closing operations as they saw their operations already in the read with 50% decreases in sales.

While ecommerce stores have saw initial surges in sales due to consumers ordering online this will probably see a backlash in the future. The increase in online sales was caused primarily by existing online purchasing trends and partly by consumers’ fear of Covid-19 infections. These increases in sales have been limited to products with repeated purchase habits. 

But online retail won’t be too good for too long

Many customers are unable to experience products like they did before and this in time will surely affect online retailers. After surge in sales many of them are able to return to the slow and steady rate of increase. However, this rate has not passed 20% in Europe historically .

This means that without a way to bridge the gap between online and in-store experiences, total retail sales are likely to decrease, stores will close and many retail workers will eventually be laid off. In this scenario a paradox of increased retail demand and decreased retail offering will result in an increase in prices, inflation and job losses.

Unless…

The store of the future is live

Quick question: what makes Instagram, Snapchat and Tik-Tok a good choice for Gen-Z? Is it the social networking features? Nope, many apps have that. Is it the video and rich media? Closer but not quite there. It’s the live interaction, one on one and one to many. In some cases, such as Fortnite – it’s many to many.

And retailers are tapping into this.

We noticed that both online and in-store retailers consider live stream shopping a viable model for existing operations.

Brick and mortar retailers see live stream shopping a way for them to decrease costs with retail spaces while at the same time retaining their strengths. They see live streaming as a way to quickly and seamlessly connect digital-savvy consumers to their in-store experiences.

Online retailers see live streaming as a way for them to quickly solve problems in terms of their customers experiencing products. In the past they have experienced with experience-only stores, open-on-delivery processes and return logistics. All of these have improved conversion rates but at the same time have increased unit economics and operational costs.

So what is next? Probably – live shopping operations. Taobao has been promoting this for quite some time with high success. Amazon has jumped on board and even Google has launched ShopLoop, a video shopping app. Live shopping software will probably continue to gain traction as the retailers need a way to reach their customers in an immersive way and consumers need better experiences than two-dimensional ecommerce stores or closed stores might offer.