New live shopping and social commerce trend
Live shopping, live online shopping or social commerce are very fashionable terms and have been heard more since the pandemic. But what is this trend? How can you apply it to your online sales strategy? We’ll tell you all the key points and the differences between them.
What is live shopping
This online sales strategy incorporates successful influencers or streamers broadcasting, promoting products and selling them live. As such, brands incorporate these influencers’ values and gain visibility in their communities, though the main objective is to make a sale.
Of course, to be successful with this marketing strategy, the person you choose needs to be relevant to your market niche. The products are sold live, on social networks or on the seller’s website, but why are you interested in doing live shopping?
Advantages of live shopping for e-commerce
As with all fads, you have to weigh the pros and cons; these are the positive aspects of this trend:
- It’s a more attractive sales format for the buyer because it’s easier to have the information explained to us than to read it on a product card.
- It increases the chances of the products being purchased. This happens not only because of their visibility, but also since followers are more apt to listen to certain influencers.
- It improves the trust in your brand. People can see how it works live, its uses and advantages.
- If you do it on social networks, it improves your account’s engagement because buyers are more likely to comment.
- Sales increase by displaying products but also by offering promos and discounts for those who buy directly.
What platform do I choose for live shopping?
This depends on your audience.
For young audiences, TikTok is perfect. In the age group between 16 to 24 years, it’s very well established; almost half of its users belong to generation Z (those born between 1994 and 2010).
If we continue with social networks, Instagram is also a good option for generation Z users (almost 30%). But, unlike TikTok, the number of users between 25 and 34 years old is higher (33%).
As for YouTube, the predominant age range is from 25 to 44 years, reaching up to 50% of the users of this social network.
And the quintessential marketplace? At Amazon, 65% of users between the ages of 33 and 40 enter the platform at least once a week, which gives you an idea of what their main consumer profile is.
For those over 44 years old, the most traditional purchasing channels continue to dominate. Although live shopping is a trend that will grow over time, right now it’s more appealing for brands to target young consumers.
Of course, you always have the option of doing it on your own website with tools like Fira Onlive or Onlive.site.
Phases of live shopping
- Start by showing the product and all the benefits it brings: it’s important to focus on what it brings to the buyers and not just on what features it has.
- Interact with the audience: answer questions, issues with the purchase, etc. The streamer or influencer should lead the interaction; you need to turn the presentation into a dynamic session and converse with the audience.
- Facilitate the purchase. This is the last phase, what we’ve developed the entire strategy for. It’s time to make a sale; ask viewers to click the buy button or link.
E-commerce on social networks or social commerce, what’s the difference between that and live shopping online?
Live shopping can be done both on social networks and on a brand’s website or app, while social commerce always makes sales on social networks.
Another key point is that sales on a social network can be done directly or indirectly. For example, Instagram offers two solutions for indirect social commerce:
- Instagram shopping allows you to tag products in the publications. By clicking on the tag, the user goes directly to the product page on the seller’s website. The sale happens outside the social network even if you find the product on it.
- Stores on Instagram let you have your own online store within Instagram, meaning you don’t need to have your own website or direct your buyers outside the social network. The purchase is made within Instagram.
Instagram also has the option of Live Shopping where tags are added to live broadcasts that are then directed to the brand’s store on Instagram.
Examples of social commerce
Social commerce can be done on many platforms.
Currently, the most widespread are Facebook, Instagram, Pinterest and TikTok. Twitter has recently joined this trend, that began with trials in the United States.
Of course, one of the most integrated forms of social commerce in e-commerce in 2022 is sales through WhatsApp Business, which is also considered a social network-type sales channel.
A few years ago, having an online store was synonymous with selling on your own website. But for a few years, sales have become a multi-channel issue. Social networks are aware of this and clearly open their doors to social commerce.
The idea of being entertained, seeing products and making purchases on the same site is very attractive for users and for sales in the e-commerce sector.
Social commerce vs e-commerce: What’s the best option?
The decision to do social commerce or to do more traditional sales in your e-commerce depends on your sector and your customers’ age. Keep in mind, they’re fully compatible. You can develop sales strategies on your own website and simultaneously sell on social networks with or without direct sales. The decision depends on the interests and possibilities of each business.