Livestream Shopping: What Is It and How to Get Started

Livestream shopping has captivated consumers globally, revolutionizing the way e-commerce businesses engage with their customers.

This article deep dives into livestream shopping and how it works, describes its benefits, and offers steps to retailers on how to get started.

And as technology continues to evolve, the global livestream shopping market is forecasted to soar to an impressive $129.6 billion in 2024, with Asia leading the charge in both adoption and revenue.

How livestream shopping works

The allure of livestream shopping lies in its blend of convenience, thrill, and exclusive offers, making it an irresistible choice for consumers worldwide.

Livestream shopping has three fundamental components:

• It’s in video format.
• It unfolds in real time, rather than being pre-recorded.
• It directs viewers to purchasable products through online cues such as links, tags, pinned comments, and similar features.

Livestream shopping events occur across diverse platforms including social media, dedicated livestream shopping platforms, and on a retailer’s website or mobile app.

Within these streams, one or more hosts showcase products, engaging in activities like trying items on, demonstrating how they work, touting product benefits, or sharing tips.

Livestream audience members can engage with hosts via live chat, enabling viewers to express opinions about products or ask questions that help them to make informed purchasing decisions.

Adjacent to the video feed, viewers can access and interact with product links, often presented as pop-ups, sidebars, or pinned comments. Depending on the platform, users can either buy directly within the interface or be redirected to the brand’s website to make a purchase.

Livestream shopping user demographics

China has solidified its position as a frontrunner in the livestream shopping world, boasting the largest market share.

Fueled by a tech-savvy population and widespread high-speed internet access, Chinese shoppers have embraced livestream shopping across various sectors, from fashion to electronics to real estate.

In 2023, China’s livestreaming commerce market soared to nearly five trillion yuan, marking a twelvefold increase from pre-pandemic levels. During the same year, around six out of ten Chinese online shoppers actively participated in livestream shopping, with projections rising to over 430 million users by 2026.

China’s success has caught the attention of retailers and consumers worldwide. Indonesia and Vietnam have achieved notable social media user engagement in live shopping streams, while India and Thailand are approaching China’s numbers in completed purchases.

In the United States, it’s estimated that livestream e-commerce sales surged to $50 billion in 2023 and are expected to continue growing by 36% over the next three years.

In Latin America, Brazil is at the forefront in livestream shopping, while Europe, although slower to adopt, primarily uses livestream shopping for fashion inspiration and purchases.

Livestream shopping & social media

Live shopping events can take place across a variety of channels, including dedicated streaming platforms for live commerce, e-commerce websites, or social media platforms.

Among these, social media platforms have seen a surge in popularity for hosting such events, thanks to their user-friendly interfaces and large user base.

On a global scale, Meta’s Facebook and Instagram are the top choices for purchasing products during livestreaming events.

The company, Douyin, has also reached an impressive level of success in China, with a 40-fold increase in live commerce transaction value between 2019 and 2022.

Douyin’s international counterpart, TikTok, is increasingly focusing on e-commerce, as evidenced by the integration of TikTok Shop features, facilitating direct in-app purchases.

While social networks offer accessibility and opportunities for the adoption of livestream shopping, this format may not appeal to everyone. In Italy and Spain, nearly half of those interested in attending a livestream shopping session reported hesitating to make purchases through these platforms and expressed skepticism toward products endorsed by influencers.

Benefits of livestream shopping for e-commerce

The increasing popularity of livestream shopping derives from its blend of benefits for both retailers and consumers.

Empowered, enlightened, and engaged customers

Livestream shopping presents the opportunity to convey a wealth of product information within a condensed time frame. Instead of making potential customers do extensive work (e.g., finding the right products, seeking reviews, watching various videos, and sifting through tons of photos on product pages), you can deliver comprehensive insights in just a few minutes during a live broadcast.

You can also inspire, educate, and entertain your audience simultaneously, leaving a lasting impression of your brand.

While exclusive discounts are the top benefit for consumers, they’re closely followed by inspiration and ideas, smarter shopping options, real-time interaction, and personalized product recommendations. In summary, offering discounts attract new viewers and customers, while delivering deeper value and fostering engagement are what ultimately retain their loyalty.

Higher revenue growth and successful product launches

Livestream shopping can elevate your product launches and overall conversion rates.

For example, buywith, a prominent live shopping platform, delivers an astounding eight-fold increase in conversions, a notable 40% surge in engagement rate, and an impressive 10-fold return on investment (ROI) for its clients.

Similarly, Pai Skincare boasts an impressive 17% conversion rate from livestream shopping—which is six times higher than the average conversion rate in the beauty and skincare industry.

Lower return rates

Live shopping events offer a distinct advantage—lower return rates.

According to Coresight data, livestream shoppers have a 40% lower likelihood of returning an item compared to other online shoppers.

Long-term growth

It’s increasingly clear that once brands venture into livestream shopping campaigns, there’s no turning back.

In fact, regularly scheduled livestream shopping events can facilitate the development of a loyal base of repeat viewers. This is particularly significant considering that more than half of livestream viewers reported tuning in to shoppable livestream events multiple times per week.

Much like paid ads, SEO strategies, and influencer marketing, livestream shopping has the potential to become an integral component of the marketing arsenal for brands seeking sustainable, long-term results.

Coresight also predicts that livestream shopping will contribute to over 5% of all e-commerce sales in the US by 2026.

Companies that embrace livestreaming could experience an impressive top-line growth of up to 25%.

7 steps to begin your livestream shopping journey

Follow these tips to get started with a livestream shopping event for your business:

1. Select your spotlight products

Opt for no more than 10 items, focusing on your bestsellers or new arrivals. This will streamline your messaging when promoting the event and help you craft compelling sales narratives.

2. Choose your timing wisely

Avoid peak shopping periods like Black Friday for your first livestream shopping session. Instead, pick a date and time aligned with your audience’s predominant time zone and preferences.

3. Determine your format

Whether it’s expert interviews, influencer collaborations, how-to tutorials, or behind-the-scenes showcases, outline your content based on the chosen products and format.

4. Pick one platform

It’s crucial to focus on one platform initially rather than spreading yourself thin across multiple channels.

5. Promote your livestream session

Leverage your marketing channels to inform your audience about your event. Highlight the livestream schedule, anticipated discounts, bonuses, and overall format. Incorporate pre-event teasers, behind-the-scenes action, and collaborations with influencers to generate buzz and optimize your event’s reach.

6. Prep your tech setup

Depending on your chosen format, ensure you have the necessary equipment, including a webcam, a tripod, special lighting, and relevant apps, to facilitate a seamless livestreaming experience.

7. Provide easy, secure payment methods

Offer a variety of secure payment methods and ensure prompt customer support to address any inquiries or concerns in real time.

Final takeaways

Customers want deeper connections, enhanced product value, and a more immersive brand experience—and livestream shopping offers precisely that.

Whether you opt for independent livestreaming or collaborations, live commerce has the potential to foster engagement, fuel growth, and yield lasting outcomes for your e-commerce brand.

Livestream shopping also offers authenticity, personalization, and genuine interactions, which translate to heightened trust, increased sales, and amplified loyalty.

Frequently asked questions