Live selling

The Stunning IMPACT Live Commerce Will Have in the U.S

By on February 13th, 2020

It’s no secret that when it comes to adopting new technologies during the past few years, America has been lagging. Woefully. Live commerce is a game changer and though American consumers have very little experience with it to date, it’s been gaining ground -and speed- in China for years.

Old e-Commerce Is Dead

Old ecommerce is yesterday. Sure, you may think it’s growing, but it’s terminal. While more people are purchasing online than in retail stores across the world every year, its demise is already upon us.

How is that possible?

It has no future potential. It can’t grow beyond its ability to provide consumers what they already have.

Live commerce is the future. And it’s here now. Today.

SoldLyve is changing the game. Completely. Forever. The numbers back up the trends and what’s been happening in China over these past few years highlights just how powerful live commerce will be in the States.

What Is Live Commerce?

What’s one of the biggest obstacles online retailers face when it comes to boosting sales? Aside from some generic ‘help staff’ accessible through a chat feature on a website, consumers are browsing static products.

They’re not being engaged. There’s no real-time interaction, demonstration, or opportunity to sell to a growing audience.

Live commerce is the solution that changes the landscape of online sales. It’s a form of social interaction and as can be readily noticed, social connection online is dominating.

People simply can’t put down their smartphones, tablets, or other devices for 10 minutes. They’re becoming addicted to it in an unprecedented manner.

And that highlights the potential power that live commerce offers.

What One Live Selling Platform Has Accomplished in China

Taobao is one of the preeminent live selling platforms operating in China. In 2018, 84 stores selling with Taobao’s platform attained $7.4 million in sales. 23 of those hit $15 million in revenue.

Influencers are the key to success on platforms like this and 1,200 on Taobao have over one million followers. Each. 1,000 more can boast a following of 500,000. 81 of those influencers were able to generate $15 million in sales using the live-streaming features.

Taobao anticipates that within the next three years, it will log in more than 500 billion sales transactions.

Yes, it’s growing and when it comes to the Chinese now, they love innovation, technology, and finding more effective ways to buy.

What Drives the Success of Live Commerce?

Let’s pose another question: why do most retailers have end caps with specially marked items, candy at the checkout registers, and keep the highest demand, everyday products at the back of the store?

It drives sales.

When you go to a supermarket to grab a gallon of milk (because your spouse called and said the kids don’t have any left), what happens?

Do you leave with just milk? If so, you’re the exception to the rule.

Usually, the milk (one of the most common household everyday purchase items in supermarkets) is in the back corner of the store. That means you have to walk down at least one aisle (likely two as you’ll go out a different way than you went in), passing dozens and dozens of products. Past the cream puffs and donuts. Past the beer or bread or ice cream.

Retailers know that upselling and impulse purchases generate a fortune in revenue.

For live commerce, when you’re engaged with your follower, your audience, you can introduce them to products they might not have known existed. Combined with strategically placed offers, limited supply, and other external forces, consumers become more active.

Active consumers equal more sales.

And that’s a powerful component of live commerce that highlights how it’s going to put the old e-commerce out to pasture.

Going Deeper with Product Descriptions

When a person heads to a traditional online store looking for a specific item, they are far less inclined to grab impulse items. Even when the world’s leading online retailer makes efforts to get customers to add more items they ‘might be interested in’ to their cart, the results pale in comparison to live selling.

With old ecommerce, product descriptions are an essential component to increased sales, yet it’s limited. If the description is poorly written, sparse, or doesn’t answer the critical questions a consumer wants answered (or one quickly), they may tend to click away and not complete the purchase.

Live commerce allows businesses and influencers the opportunity to highlight the reasons why consumers should want the products and that they can trust in them.

Live commerce, or live streaming, or live selling isn’t just an idea for the future; it’s going to be the primary e-commerce model.

As SoldLyve CEO, Xan Spencer, stated, “Live commerce is set to become the main source of online selling around the world. When you realize just how significant online selling already has become, you start to understand the impact this will have for thousands of businesses.”

Xan went on to notce, “It basically comes down to this simple concept that if you’re not using live commerce, your competitors will be. And when that happens, they’ll be taking all the business sales from you.”

Targeting Less Served Consumers

Is live commerce going to completely upend retail industries in major cities like New York, Chicago, Miami, or L.A.? Eventually, but as Taobao users have discovered, those are first tier consumers (and suburban consumers are considered second tier). They are generally surrounded by shops and stores everywhere they go.

Down each city block there’s another opportunity for businesses to sell directly to them.

Yet, it’s the third tier consumers -the men and women living in more rural regions- who are ripe to become primary consumers of live commerce first. In fact, for one Taobao influencer in China, it’s that demographic that makes up more than 2/3 of her customer base.

That’s because they often don’t have the same knowledge about various products and less exposure to them to buy. You won’t buy what you don’t know you need.

There’s much more to live commerce, of course, and why it’s the future, but the core idea to keep in mind now is that old e-commerce is dead.

Live commerce with SoldLyve is about to upend everything.