How Live Shopping Is Transforming Ecommerce
4 min read
The expansion of the live shopping market is set to be further elevated as Shopify and YouTube have partnered to introduce a seamless live commerce opportunity for online merchants. The Canadian e-commerce platform announced a deal with the social media giant as it looks to capitalise on the rise of online content creators and the digitisation of shopping.
But how will this transcend the live shopping experience for millions of users worldwide? Will these opportunities for Shopify and YouTube now see their growth expand even further? And what does live commerce mean for digital marketing in the future?
Well, our blog below covers all there is to know about live commerce and why live stream shopping may benefit your e-commerce marketing strategy going forward.
What Is Live Commerce?
E-commerce is now a part of everyday life. Be it purchasing through Amazon or your favourite retail website, we all make purchases online. But live commerce is a little less known, despite its rapid growth and evolution since the start of the pandemic.
Live commerce is the seamless connection between shopping and content, keeping engagement high by allowing consumers to purchase a product or service without leaving the platform they are on.
The Global Rise Of Live Stream Shopping
The integration of live stream shopping has grown since the start of the pandemic, with shopping habits changing drastically in the wake of lockdowns worldwide. This growth hasn’t been stronger than in Asia, where the live shopping market has been growing exponentially for a number of years.
In 2020, Chinese online shopping platform Taobao announced revenues of 400-billion-yuan as a result of its live-streaming commerce business. TikTok and Instagram have also ventured into the live commerce space, with creators producing live streams with the ability to sell directly to consumers: The introduction of the social media giant, highlights the depth of the opportunity.
Why Shopify Turned To Live Commerce
But why has Shopify leveraged YouTube and turned to the world of live commerce? Although the pandemic altered shopping habits for all of us, the return of stores opening has seen a vast increase in physical shopping, thus impacting online sales. As a result, Shopify has seen its share prices fall. This year, the Canadian company lost 70% of its share price value, meaning innovation was needed to arrest the slide.
Similar projects through social media giants Instagram, Facebook and TikTok, have seen huge increases in orders since the introduction of their partnerships and could have been a good option for Shopify. However, with a near 2- billion strong community worldwide, being the second largest search engine on the planet and being part of the google ad programme, the opportunity with YouTube may simply have been easier to set up and too good to pass up.
By creating a seamless and shorter path to purchase, the opportunity for Shopify’s customers to see revenue growth is incredible. On top of this, real-time inventory syncing will allow live commerce elements being run, to receive continuous updates. So the products being advertised are always in stock, so budget and advertising real estate aren’t being wasted.
The step is bold from Shopify, but by providing this service first, they are separating themselves from the competition.
The Benefits Of Live Stream Shopping For YouTube
Reviews have become an important part of e-commerce, with many of us using them before making a decision. While written reviews are great, many people turn to video, especially when it comes to products. Consumers like to see them in action and being put through there paces.
“Should you Buy”, “Honest Reviews” “Comparing X and Y” these videos dominate YouTube and influence buying decisions on a daily basis. Consumers searching for these videos have done so with intent, They are further down the purchase funnel, and are therefore much more likely to convert.
This is just one approach just scratches the surface of the opportunity. Sponsorships, product placements, creators being able to sell their own products directly through YouTube, to name just a few.
It may seem like the benefits are heavily weighted to the creators and Shopify, however the integration will mutually benefit both parties.
- Being able to make a purchase straight from the video reduces the steps to purchase, making it far easier to buy. In turn this will increase the volume of sales. Great for the retailer and YouTube as they get paid for the ad click.
- On the current model, people would search for the content they want to watch and watch it, should they want to make a purchase they would have to leave. Along the way, they’ll be exposed to video and static ads . Not leaving to make a purchase means customers remain on YouTube, increasing retention and the overall time you are on the channel. Providing the opportunity to show you more content and, of course, more ads.
The Benefits Of Live Commerce For E-commerce Marketing Strategies
Simply put, live commerce delivers a shorter path to purchase, resulting in an increased chance of conversions. Traditional tools, such as remarketing, shopping ads and search, will all still play a huge part in e-commerce promotion, with Live commerce providing another avenue to explore and support the wider strategy.
If an e-commerce business can adapt and modernise its shopping options and experiences, the likelihood of attracting new customers, particularly tech-savvy youngsters, is much greater.
Whichever marketing strategy you adopt, appealing to new audiences means greater exposure and increased traffic. No matter the industry you are in, the methodology used can still be applied to your paid campaign strategies.
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Our dedicated PPC team has all the knowledge and expertise when it comes to paid marketing strategies. They can help ensure your business gains visibility and recognition, resulting in higher conversions and generating new leads. Contact us today and find out more about paid search campaigns and how they can help grow your e-commerce business.