My mother loves to shop online.
She enjoys exploring new products, brands, and creators.
One day, her favorite creator went live on Amazon. They were selling some products and were giving live demos.
She liked what they sold, clicked the product link, and bought it.
That’s live shopping in action.
Live shopping is booming, with brands pouring money into it.
In 2023 alone, live shopping sales in the US were estimated to be worth $50 billion.
According to Statista, livestream commerce will grow by 36%, accounting for 5% of all e-commerce sales in North America by 2026.
What is Live Shopping?
Live shopping, also known as live video shopping, live commerce, and livestream commerce, is a blend of livestreaming, entertainment, and online shopping.
Brands use livestream shopping as a part of video commerce to promote and sell products through live broadcasts on digital platforms, typically in partnership with influencers or hosts.
Image: Amazon Live with host featuring products on sale
Unlike traditional e-commerce that uses static images and text-based descriptions, live shopping creates a personalized, engaging, and interactive shopping experience.
How Did Live Shopping Become What It Is Today?
To answer this question, let’s give you a bit of historical context.
Live shopping is not entirely new.
It draws inspiration from TV shopping channels.
The early 2000s saw the rise of livestreaming shopping.
Remember Home Shopping Network shows from the past?
Back then, brands would partner with HSN to promote their products. The host would then show the product in action, give live demos. And, a contact number would appear on the screen allowing viewers to place orders or get live assistance.
Image credit: @HyperTV1 on YouTube
As years passed by, live shopping on television channels was replaced by online mediums.
The contribution of Chinese retail giant Taobao is perhaps the most important one in the evolution of live video stream shopping as we see it today.
In 2016, Alibaba’s Taobao launched the first livestream shopping event.
As the Singles’ Day pre-sales campaign in 2020 on Taobao Live generated US$7.5 billion in total transaction value in the first 30 minutes, it made headlines all over the world.
In the same year, the total sales revenue of Taobao, Kuaishou, and Douyin reached US$140 billion.
Excited by the success of selling live in China, companies in the US became eager to replicate the same magic on their home turf.
Then came the COVID-19 pandemic which further boosted its growth, allowing buyers to shop from the comfort of their home.
Now TikTok, Amazon, Walmart, YouTube are all in the game.
Clip: TikTok
TikTok recently hosted “Deals For You Days” where creators and brands came together to sell live on the social media platform.
Here’s what they announced before the event began on July 9, 2024:
Starting on July 9, trending brands like L’Oréal Paris, Maybelline New York, NYX Professional Makeup, Our Place, Too Faced, and Zwilling USA are offering huge savings exclusively on TikTok Shop in the US. Merchants and creators can participate in content challenges for short video and LIVE shopping events, where they can interact directly with their followers and share their favorite products and best-sellers.
Similarly, YouTube also allows sellers to connect their stores, tag items, and broadcast shoppable livestreams on its platform.
Clip: How live shopping works on YouTube | Credit: YouTube
Buyers can click the “Shop” button for products in this livestream which will then open a list of featured products, and checkout immediately without leaving YouTube.
Clip credit: YouTube
The product section above the watch feed lets customers shop for featured products even when live chat is closed.
More retailers and brands have jumped the bandwagon to start their own live events on their own websites.
Image: Screengrab showing a past live shopping session on Avon’s website
| DID YOU KNOW? With Vimmi, you can go live on multiple platforms including, TikTok, YouTube, website storefronts, and marketplaces like Amazon at the same time. |
How Does Live Video Shopping Work?
The basics of live video shopping are simple.
In a live shopping event, hosts present products in real-time, give a demo, and interact with viewers. They might even share exclusive, time-bound promo codes to boost sales.
Viewers can interact with the host through live chat, ask questions, participate in polls, and make purchases directly from the stream.
Image: A host on Amazon Live featuring COFANDY products
This direct interaction not only keeps viewers engaged but also builds a connection between the host and the audience, offering them a seamless blend of entertainment and shopping.
Key Elements of a Live Shopping Experience
- A live shopping platform
- A host and/or co-hosts
- A participating brand
- Products that will be showcased during the event
- Interactive features, such as live chat, polls, or Q&A sessions.
- Shoppable product links
Benefits of Live Shopping
1. Better Customer Engagement
The live format allows for immediate feedback and interaction, making viewers feel involved and valued.
Customers see another human being on the side of the screen. Someone they can talk to, who can answer their questions, clarify doubts.
Look at this image below and see how interested buyers are chatting, asking questions, and interacting with the host:
2. Drives FOMO and Impulse Buying
The combination of real-time product demonstrations and interactive formats, such as exclusive coupons, flash sales with a countdown timer, drive FOMO and impulse buying.
Image credit: Hubspot
3. Reusable Content
Live videos aren’t only useful during the event. Brands can make recorded sessions available to those buyers who missed the show or want to watch later.
This screengrab is from a past live shopping event hosted on Avon’s website that still allows buyers to play it and buy from the shoppable links after it ended.
Notice there’s also a library of recorded livestream events below that.
These are a type of shoppable videos.
4. Boosts Sales
Stormi Steele, founder of Canvas Beauty, on June 8th, 2024, earned $1 million in sales during a 6-hour livestream on TikTok.
Companies using live commerce have reported conversion rates as high as 30%, compared to the 2.5–3% average for standard e-commerce.
Taobao claims their conversion rates are 32%.
5. Builds Trust and Authenticity
Trust is everything in e-commerce.
With live shopping, customers can watch the product in action, ask questions, and get honest answers on the spot.
This transparency and authenticity builds trust and shows you have nothing to hide.
6. Fuels the Creator Economy:
Livestreaming commerce is powering the growth of creators and small businesses. It lets creators, influencers, and small businesses make money and grow their brands.
With live shopping, they can show off products, earn affiliate commissions, land more sponsorships, and build authority.
Future Trends in Live Video Shopping
1. Integration of AR/VR
Augmented reality (AR) and virtual reality (VR) are already being used. In the coming years, we are expected to see more AR/VR fusions and creativity.
2. Omnichannel Livestreaming
Wouldn’t it be awesome if you could livestream everywhere at the same time? Omnichannel livestreaming blends live shopping with multiple marketing channels.
At Vimmi we believe in experiencing the future in the present, so we’ve already enabled this for our users.
Go live and stream everywhere – your website, TikTok, Amazon, Walmart, YouTube, Instagram, Facebook, Twitch – all at the same time.
3. One-to-One Live Shopping
One-to-one video calls are trending for high-value purchases, allowing shoppers to connect with creators in real-time.
It’s like bringing the in-store experience to your screen with personalized advice and recommendations.
Luxury brands have seen great success with this, and we expect to see growing demand for one-to-one live shopping events.
Final Thoughts
Live shopping is here to stay and transform e-commerce.
The sooner you start investing in live commerce, the better it is for boosting sales and staying ahead of the competition.
Share your experiences or ask questions in the comments below – let’s continue the conversation.