In many instances, your customers are not seeing the results they want from their e-commerce websites. E-commerce is not the silver bullet everyone thought it would be. In fact, in 2022, online sales made up only 15% of total retail sales. But wait, there is good news: livestream shopping.
Companies that incorporate shoppable video content into their websites experience:
- 10x conversion rate compared to traditional e-commerce shopping carts
- 300% increase in customer engagement with the website
- 70% higher average order values
- 40% reduction in returns
So, What Is Livestream Shopping?
Livestream shopping launched around 2017 in China. Companies there began integrating their products directly into videos. This enabled their customers to select items to purchase without leaving the video. In 2020, there were over 265 million transactions via livestream shopping — and it’s growing. It is estimated that by the end of 2027, it will account for at least 20% (or $253 billion) of all online sales worldwide.
Why It Matters to Your MSP
Livestream shopping isn’t just a trend; it’s a game changer that MSP firms simply can’t afford to ignore. Here’s why offering it to your customers is not just a good idea — it’s imperative:
- New Revenue Streams for MSPs: Incorporating livestream shopping into your clients’ websites opens the door to a lucrative new revenue stream. With it, you will create a new revenue stream while providing unparalleled value to your clients.
- Enhanced Value for Existing Websites: It can seamlessly integrate with existing websites. This can drive new business and delight your clients with innovative features.
Dave Siembieda
- Unrivaled Differentiation: In a crowded market, differentiation is key. Livestream shopping sets your MSP apart from the competition by offering cutting-edge technology. It drives tangible results for your clients.
- Increased Customer Engagement: Even if a website is not e-commerce enabled, studies show that live video interaction with customers significantly increases customer satisfaction. Some providers offer click-to-video-chat capabilities. These enable customers to connect directly with a company representative to ask questions, resolve support issues, or provide feedback.
Use Cases for MSPs to Incorporate Livestream Shopping
To give you a better idea of where livestream shopping can be implemented, here are a few use cases:
Consumer Electronics Stores
Picture this: a live product demonstration of the latest smartphone model, where potential buyers can interact with knowledgeable hosts, ask questions in real time, and make purchases directly from the event. This empowers e-commerce websites to achieve a tenfold increase in shopping cart conversion rates, driving measurable success for your clients.
Adventure Racks for Bikes and Skis Companies
Imagine a thrilling livestream expedition hosted by outdoor enthusiasts, demonstrating the durability and versatility of these racks in action. With livestream shopping capabilities, viewers can effortlessly add products to their carts while immersing themselves in the adventure. By providing valuable insights and fostering a sense of community, livestream shopping becomes a powerful tool for building brand trust and driving repeat purchases. Ultimately, it leads to the long-term success for your clients.
Grocery Stores
Visualize a live cooking demonstration hosted by a professional chef, showcasing fresh ingredients available for purchase directly from the livestream. With livestream shopping’s advanced features, shoppers can add items to their carts with precision, ensuring that every delivery order is fulfilled with accuracy and satisfaction. Thus, livestream shopping becomes a catalyst for enhancing customer loyalty and driving revenue growth for grocery stores.
Do Your Due Diligence on the Market
The market for livestream shopping is fragmented with no clear leader or capabilities. Also, pricing can vary wildly from one provider to another, so do your research. Choose a provider who offers all of the features and functionality available in the market. The provider also should know MSPs and have a program that will make you successful. This should include competitive pricing, GTM materials, and easy-to-use implementation guides. Most importantly, it should be a provider that is platform agnostic.
In Summary
Livestream shopping can be a valuable tool in your portfolio of services. It will increase cart conversions and cart value, decrease returns, and boost overall customer engagement.
Dave Siembieda is CEO of Bloo Kanoo.
Featured image: iStock
