Live Shopping in Ecommerce: A Retailer’s Guide
Live shopping is not new: Just ask anyone who has purchased a product on their phone while watching TV networks like the Home Shopping Network (HSN) or QVC. However, fast forward to today, and live shopping has a whole new meaning.
Rather than late-night sales pitches and standardized TV sets, modern live shopping has transformed into an accessible experience that leverages social community to create dynamic events.
The live shopping that’s popular today began in 2016 with the launch of Alibaba’s Taobao Live. Since its inception, retailers have seen live shopping encourage higher engagement and increased conversion rates. It’s also growing swiftly, projected to reach $77.89 billion by 2030, with a compound annual growth rate (CAGR) of 32.0% from 2024 to 2030.
In other words, if businesses aren’t exploring live shopping strategies, they are likely missing out on an excellent revenue opportunity and a way to reach younger shoppers.
What is live shopping?
Live commerce is real-time video commerce that lets viewers interact and purchase instantly. It’s conducted through numerous platforms, including livestreams on brand websites, social platforms, and apps. It’s considered a form of entertainment, engaging for buyers who crave product discovery and education through storytelling, community, interactivity, gamification, and social proof. Some of the common elements seen in live shopping are:
- Hosts: Founders, brand reps, and influencers.
- Interaction: Polls, live Q&As, real-time deals, and flash deals.
- Education: Demos, use cases, and benefits.
- Purchase: Integrations that allow seamless conversions.
Live shopping provides a strong social element, like a Tupperware party, where social behaviors drive more purchases, whether through the influence of others or FOMO (fear of missing out). Credibility and persuasion are part of the atmosphere and help establish trust.
Live shopping has seen great success in beauty, fashion, electronics, and lifestyle categories, where visuals and product experience matter.
Live shopping by the numbers
Like any emerging trend in the retail sector, as live shopping grows, more research and surveys are being done to look at its effectiveness. It’s clear there are strengths and challenges in this global trend. For example, even though the market for live shopping is growing, it’s not always effective, particularly among older generations. Here’s a breakdown of what surveys have found:
- 86 million Americans have purchased products through live shopping shows.
- Gen Z and Millennials are more engaged with live shopping; about 15% percent of Gen Z, the most-engaged generation, say they watch live shopping shows once a week.
- Trust and exclusivity are the biggest conversion drivers: Exclusive discounts, quality assurance, and product demonstrations boost consumer trust and engagement, with conversion rates of up to 30%, exceeding traditional ecommerce averages.
- The concern for overspending and impulse buying are the biggest deterrents.
- In order of most popular, TikTok Live, Facebook Live, and Instagram Live are the top three live shopping platforms.
Why consumers are tuning in
Consumers have high expectations for a hassle-free customer experience. Live shopping is not only a quick and easy way to start the buying journey, but it also brings together the social and emotional aspects of shopping, making it an engaging way to purchase.
It provides elements that drive sales: Discovery, interaction, and FOMO, all in real-time. This level of brand engagement can help build confidence, especially when done intentionally and authentically. It can also provide a level of transparency that consumers crave, for example, through Q&As, testimonials, and demos.
Shoppers also like the feeling of exclusivity. They want discounts, exclusive product drops, insights, and feedback from their peers.
For retail businesses, live shopping offers benefits as well. Real-time feedback can help them refine products. When the live shopping strategy is strong, businesses are more likely to see higher engagement and conversion rates. It’s also an opportunity to build a strong brand community, which leads to increased loyalty while spreading brand awareness. The key, though, is conducting these events in a way that is genuine.
How to get started with live shopping
Live shopping starts with the right product. Retailers should choose a product or category that performs well visually. In general, the top categories are fashion and accessories, beauty and skincare, electronics and gadgets, home and kitchen, fitness and wellness, and food and beverage.
The host or hosts matter because while founders and influencers can be effective, it’s essential that they are authentic rather than seen as “entertaining.” It’s also essential to plan out the show through a script, timing, and pre-determined CTAs. This could be banners inviting purchase, a flash deal, or an announcement by the host. The key to any CTA is a seamless checkout integration.
Retail events require promotion. Market live shopping events in advance through social, SMS, or email. A banner or ads on a retail website are also effective, especially for shoppers browsing specific products. Any promotional or live shopping efforts should be tested. The feedback and KPIs will allow businesses to learn and optimize the events further, increasing their effectiveness and success.
Top live shopping platforms and examples
Retailers have several options for hosting live shopping events. They span from well-known social networks to lesser-known specialized platforms. However, there are clear favorites:
TikTok Shop Live
Currently, TikTok Shop Live is currently the most popular live shopping platform. Big brands like Maybelline and e.l.f. and smaller ones such as Like Air, have used live shopping to keep their customers engaged. For example, Like Air, a popcorn brand, goes live frequently with new product drops and discounts. Consumers can purchase easily through in-video purchase links.
Facebook Live and Instagram Live
Facebook may not be as popular as it once was, but it is the second most popular platform for shopping live. The company makes it easy by setting up a Facebook shop and enabling the live shopping feature. During live streams, feature products that viewers can purchase immediately.
Instagram Live works much the same as Facebook Live, except it focuses more on the visual aspect and audience interaction. Although Facebook can run longer broadcasts, Instagram is excellent for quick, impactful segments where products are tagged for purchase in the live video.
Facebook vs Instagram Live breakdown
| Feature | Instagram Live | Facebook Live |
| Duration | Up to 1 hour; short, punchy, and mobile-driven | Up to 8 hours; ideal for extended, flexible events |
| Shopping Tools | Tap-to-shop with product tags in live video | Integrated live shopping and direct product links |
| Content Storage | Disappears after 24 hours (unless saved as a Reel) | Saved permanently and repurposable as on-page video |
| Desktop Access | Mobile-only interface for hosting | Fully accessible via desktop for broader control |
| Platform Focus | Visually rich, mobile-first, Gen Z/Millennial vibe | Versatile and robust; good for community engagement |
Amazon Live
Amazon Live has become a place for influencer and brand livestreams that feature direct Amazon checkout. As Amazon Marketplace continues to grow as a popular retail channel, Amazon Live has become another useful tool for retail brands. The platform offers several ways to increase visibility and a way for viewers to follow their favorite brands.
Other popular platforms
- YouTube Live Shopping: Integrates product listings directly into livestreams for seamless in-video purchases.
- NTWRK: Curated streetwear and pop culture drops with a hype-driven, entertainment-first experience.
- PopShop Live: Interactive shopping with live hosts, built for mobile-first commerce across niche communities.
- CommentSold: Tailored for small businesses and boutiques; customers buy via comments during Facebook or mobile app streams.
- Twitch: Originally for gaming, it is now increasingly used for creator-led shopping events and brand takeovers.
- Poshmark Live Shows: Seller-hosted streams where users auction and sell fashion and lifestyle items in real-time.
- Brand Websites: Many brands now host live shopping events on their own DTC sites using third-party tools or custom solutions for more control and data.
How a 3PL optimizes live shopping efforts
Fulfillment is a crucial part of any promotional efforts and the key to streamlined omnichannel operations. Live shopping has the same consumer expectations; the desire for an excellent post-purchase experience, including fast and affordable shipping, timely notifications, and receiving the right product damage-free.
A 3PL provider can ensure that inventory is synced in real time as live sales occur and maintain shipping timelines even with high-volume spikes, as well as facilitate any returns.
Retailers looking to succeed in the next generation of shopping benefit from experimenting with live commerce. It’s a way to engage customers, build community, and accelerate sales when done right. Plan on going live? Don’t let logistics go dark. Partner with a 3PL that keeps your inventory synced, orders flowing, and customers happy so you can focus on putting on a show that sells.
