Live commerce, a term wont to describe the mixture of streaming video and e-commerce, promises to revolutionize the retail industry and consumer shopping habits. Here’s a rundown of how live commerce is taking shape, trends within the retail space, and our predictions for what’s next.
The Evolving Retail Industry
Brick-and-mortar stores are shutting their doors for a few time. But with the COVID-19 pandemic, store closures went into hyperdrive. quite 8,000 retail locations closed down permanently in 2020, confirming that ‘business as usual’ is not any longer an option.
Today, chatbots and mobile apps make online customer support seamless. Machine learning technologies provide the personalized recommendations that we’ve all come to expect. And overnight delivery is commonplace.
E-commerce has already transformed lifestyle . And whilst lockdowns ease, the physical mall will still crumble. But some aspects of the in-store experience go missing when shopping within the digital world.
Shopping has traditionally been a sensory experience. Sight, touch, sound, smell, and taste all prove useful when evaluating an item for purchase. That’s why Costco doles out free samples, and car lots allow buyers to test-drive prospective vehicles.
Now that online has become the predominant place for consumers to research goods and services, retailers are struggling to duplicate these material aspects of shopping. It’s no secret that purchasing online yields convenience. But what about engagement? Will a visit to Amazon.com ever be as fun as a visit to Rodeo Drive?
Cue in live commerce. By fusing online retail with live streaming, today’s companies are trying to bring consumers one step closer to the in-person experience
Types of Live Commerce
Just as online shopping transformed retail twenty years ago, live streaming promises to rework e-commerce today. Dubbed live commerce, this convergence of video and shopping helps improve engagement, close the gap between customer and merchandise , drive sales, and — in cases where bidding is involved — increase the typical sales price.
Let’s take a glance at a number of the foremost common formats for live shoppable media.
Online Marketplaces
Online marketplaces starting from Alibaba to eBay allow users to shop for and sell products without ever leaving their homes. But the addition of live video streaming is proving vital to keeping buyers interested. Why? the power to get online is not any longer a novelty. Without new layers of engagement, online marketplaces will become a thing of the past.
By integrating live streaming into the platform, these marketplaces can deliver the closest possible experience to ‘being there’ for those tuning in from their front room . Real-time interactivity replicates the urgency of a true marketplace, prompting immediate action and enhanced community participation.
Live Auctions
Live video streaming is bringing 18th-century auction houses like Sotheby’s and Christie’s into the 2020s. By enriching their digital presence, these organizations are connecting bidders worldwide with the thrill of the saleroom. Live streaming exposes the bidding pool to those unable to physically attend, reaching participants with varying interests and ensuring that every item sells at its proper valuation.
Online auctions are business , and real-time video delivery is critical. Whether auctioning off livestock or art , any delay during a live stream could prevent bids from being recorded properly. Fractions of seconds can translate to billions of dollars in lost revenue when deploying these formats online.
