With the advent of digitization, eCommerce is the talk of the town – even more so since COVID-19, which exacerbated the industry’s growth. This means businesses are turning towards eCommerce platforms, which in turn are constantly innovating to enhance customer experience.
One such development is the introduction live commerce. Essentially, live commerce combines online livestream broadcast with eCommerce, enabling viewers to watch and shop at the same time. Additionally, it ensures the amalgamation of entertainment and shopping, which is exactly what the younger audiences crave. Hence, this exciting shopping format encourages higher engagement and a more fulfilled customer experience.
Moreover, it allows people to access a personal shopping experience from the comfort of their own homes. By showcasing the products in real-time, sellers are able to provide a complete picture of their offering, including its uses, main features as well as its social implications. Not only is this helpful for viewers to make a clear assessment, but it also caters to those who are socially conscious. For instance, through live commerce, sellers can explain the production process of the product or highlight whether an offering is environment-friendly or not. In turn, this helps buyers make informed decisions.
Due to its ability to provide a seamless customer experience, live commerce is expected to account for 10-20% of all ecommerce by 2026, according to a report by McKinsey. Already retailers have begun to implement it because of the plentiful benefits it offers. For example, Daraz is pioneering the concept of live commerce on its Daraz Live platform. Being a first of its kind, this initiative is bound to redefine the ecommerce landscape of Pakistan, enabling greater trust in online shopping.
Since live commerce results in direct communication between the sellers and the buyers, it cultivates trust and helps small businesses grow. To further empower SMEs, Daraz is continuously shortlisting a pool of sellers and training them by educating them regarding the dos and donts of live selling. Monitoring the content that goes up on its platform, the ecommerce channel aims to increase its seller base, which engages in video streaming. The reason behind it is that live selling is a great opportunity to connect and establish strong relationships, and it is also helpful in protecting sellers. For example, through live demonstrations, customers who buy the product know exactly what it entails; hence, they are less likely to return it or ask for an exchange.
Simultaneously, live commerce is reinventing sales. It permits distribution of high-value content to a wider audience. Furthermore, it accelerates conversation due to its immersive and entertaining nature. As people tend to watch videos for a longer time, it helps customer engagement and creates greater brand awareness. Similarly, it promotes a sense of urgency, through incentives, such as one-off coupons. In fact, McKinsey reported: companies that inculcate live commerce tend to have conversion rates approaching 30%, which is 10x higher than conventional ecommerce.
Therefore, in a world characterized by video marketing and ecommerce, the blending of the two offers enormous scope to amplify customer and seller experience.