The company is trying to popularize live shopping in the US (2023)

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The market for selling goods online in real time is relatively small, but many startups and big tech companies are betting that American consumers will catch on.

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    (Video) In China, The Future of Shopping Is Already Happening

The company is trying to popularize live shopping in the US (1)

On a warm spring evening in New York, dozens of people gathered on a rooftop in Midtown Manhattan to chat over fruity cocktails. Shortly after happy hour began, a woman stepped out of the crowd to get to work.

Standing between a fake green background and an iPhone on a ring light, she pretends to be an auctioneer and begs the public to buy an old sweater.

"Guys, let's make this $67," Iva Lazovic said with a smile as she approached the camera. "This is so cute. It's Lululemon. You'll never get a lower price than this in the store. Let's face it. Posh has bargains and deals."

Ms. Lazovic was one of several women at the event who jumped to their phones to sell their wares on Posh Shows, Poshmark's new live-streaming platform, the company's first major announcement since being acquired by the South last fall. Korean giant Naver. business strategy.

Poshmark is one of many companies racing to break into the burgeoning US live-streaming retail market, which retail consultancy Coresight Research estimates will generate $32 billion in sales this year. Focus on live shoppingChinese marketThat compares to $647 billion in sales this year, and American companies have for years poured money into media where people buy and sell products in real time via video. But American consumers have yet to personally shop the same way.

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In 2016, e-commerce giant Alibaba launched Taobao Live to popularize live shopping in China. The live streaming landscape in the US is more fragmented, but even as shoppers return to the stores, retailers and big tech companies are betting that consumers will continue to search and buy on their phones. For platforms, live shopping promises more engagement, with consumers sometimes spending hours watching hosts selling items. For retailers it is another channel to sell merchandise.

Together with Poshmark, QVC parent company Qurate recently launched Sune, a real-time shopping app for Gen Zers. In the past year, Walmart, YouTube, and eBay have added or expanded their real-time shopping features. On Prime Day, Amazon recruited celebrities like Kevin Hart to promote its Amazon Live platform. Shein was an early adopter when it launched Shein Live for US shoppers in 2016. Shein's US president George Chiao said in a statement that what started with just a few hundred viewers per episode has now grown to average "hundreds of thousands of viewers per episode."

Manish Chandra, CEO of Poshmark, said at the rooftop event: "What we've seen is just wild excitement. In just a few months, they've shown that this form of on-site shopping works," he added , referring to Posh Shows salespeople like Ms. Lazovic.


While big tech companies and major retailers struggle to gain a foothold in live shopping, startups like Whatnot and Ntwrk are touting their close-knit customer communities as a blueprint for live shopping in the US. Investors poured more than $380 million into live-streaming e-commerce companies in the US last year, compared to $36 million in 2020, according to PitchBook data.

"We believe shopping isn't just about transactions. It's about experience," said Wu Liya, CEO and founder of live shopping startup ShopShops. She added that live shopping can simulate an "online and offline shopping experience".

Ms. Wu said ShopShops began targeting US consumers rather than Chinese consumers in 2021 as it saw more opportunities in the US retail market. She added that ShopShops and other new entrants can "build overall behavior" as major players have yet to define on-site shopping in the US.

For some viewers, live shopping has replaced the malls and morning cable shows. AJ Johnson, a lifestyle blogger from Scottsdale, Arizona, watches ShopShops live most of the week, but her favorite show is Wednesdays at 6 AM.

The app is more than just a place to buy clothes and jewelry, she said. Ms. Johnson, 36, found entertainment and community on ShopShops by talking to shop owners and fellow shoppers about their lives.

"Some people play video games. I just watch live shopping," Ms. Johnson said. "It's like walking away."

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But live shopping faces fierce competition in the US, with linear TV, streaming channels and social media vying for consumers' attention and money. Last year, 78% of American adults said they had never shopped in person.bearingOffered by Morning Consult.

Some US companies have withdrawn from live shopping. Meta took a big step into e-commerce early in the pandemic, but it shut down Instagram's live shopping feature in March and Facebook's live shopping feature in October.

Other companies have been much slower to shop live. TikTok has been testing its live shopping tool, TikTok Shop, in the United States since November. It's a guess that users will stay on TikTok to check out sellers — and both big brands love beauty lines e.l.f. And PacSun, the California clothing company, and small business owners - share their products and then purchase them through the app.

But the launch of TikTok Shop has been dragged down in the US. The feature has been available in parts of Southeast Asia for over a year, while TikTok's Chinese version Douyin has been offering live shopping since 2018.

In the US, TikTok faces fierce competitioncriticism from lawmakersand regulatory authorities. More than two states have banned the app on government devices. In April, Montana lawmakers passed a bill to block TikTok in the state, the first ban of its kind.

TikTok declined to say when TikTok Shop would become generally available in the United States.


Companies have taken a different approach to working with landlords. On Poshmark, anyone with an account can sell items from their closet. Other platforms work directly with sellers, such as Amazon, which uses celebrities and influencers to sell a variety of products, such as printers and kitchenware.

Paige DeSorbo, podcast host and influencer of the Bravo reality series "Summer House," hosts her own show on Amazon Live, allowing her fans to see a "completely different" side of her personality.

"People trust me in certain things, so they want to hear my opinion on fashion or beauty," she says. "When I talk to them on set, I feel like it's more important that we're friends."

Ms De Sobo, 30, has been presenting her show weekly since late 2021, usually with two cameramen, a set designer and at least one producer filming episodes. She receives a flat hosting fee and commission from Amazon when people buy featured products on her Amazon page or during her live streams.

During a recent live stream, Ms. DeSorbo recreated outfits she shared on social media. While trying on "dupes" - a fashionable term for fake versions of expensive merchandise - she answered questions from the public about what to wear to events such as comedy shows and summer vacations.

“It was like talking to a wizard behind the scenes,” said one of her 500-plus viewers, as Ms. De Sobo spoke of a recent trip with other reality TV cast members.

Deborah Weinswig, founder of Coresight Research, said businesses need to teach landlords how to sell and talk directly to customers, a worthwhile investment, especially for landlords. In China, companies initially hire salespeople to promote specific brands. These sellers then build their audience, attract customers, and eventually gain enough representation to choose their own products and brands.

"The biggest misconception is that celebrities will drive the industry," Ms. Weinswig said. "That's why I think we got off the rails in America because you're a celebrity or a creator — you're not necessarily a good host."

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The company is trying to popularize live shopping in the US (4)

Posh Shows does not target celebrity hosts. Instead, anyone with a Poshmark account can go live, including Alex Mahl, who works full-time at a law firm and spends hours streaming on Posh Shows.

Mahl, 26, spends about 40 hours a week doing side hustles, including hours mostly preparing Lululemon clothes for sale and uploading photos of them to the Poshmark app, where viewers can see the items during the show. By early May, she had sold more than $50,000 worth of inventory and estimated she would have $200,000 in sales by the end of the year.

Mrs. Mahl considered making this her main job, but remained cautious. She gained early access to Posh Shows and kept track of her ratings as more users came online. On a recent Monday night, Ms. Mahl competed with dozens of other sellers, including a mother carrying a baby on her back selling a New York & Company dress for $8 and a man selling a Louis Vuitton dress starting at $475. .

"Am I worried that more people will have access? Yes, I am," Ms Marr said. "But I have a lot of confidence in myself and what I've done for it, that it will continue to do well."

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What is Instagram live shopping? ›

Instagram live shopping allows users to join live events by stores, chat with a representative, and purchase through the live session without having to reroute to another page for a product listing. Tell the story behind your products, deepen customer connections, and encourage shopping in the moment.

How does live shopping work? ›

Live stream shopping is similar to regular live streaming, but with added features to allow viewers to buy the products they see on the stream. If they see something they want to purchase, they can click on the product and order it right then and there.

What is the history of live shopping? ›

The concept of livestreaming e-commerce first began in China in 2016 with social retail giant Taobao. Taobao developed a fresh idea that completely changed e-commerce: mixing the social component of livestreaming video with an e-commerce store that allowed viewers to tune in and make purchases in real time.

Does Instagram still have live shopping? ›

Beginning on March 16, 2023, you will no longer be able to tag products in live broadcasts on Instagram,” the company wrote on an Instagram support page. “This change will help us focus on products and features that provide the most value to our users.” The change marks Meta's next big step away from live shopping.

Is Instagram live shopping going away? ›

Starting March 16, 2023, Instagram users will no longer be able to tag products during live broadcasts. Meta says this change will allow the platform to “focus on products and features that provide the most value to our users.”

How do you promote live shopping? ›

6 Tactics to Build an Audience for Your Live Shopping Event
  1. Offer a Can't-Miss Exclusive.
  2. Set Up a Multi-Channel Digital Campaign.
  3. Leverage Your Influencers' Following.
  4. Make Your Live Events Fun & Interactive.
  5. Use a Series of Events to Build Momentum.
  6. Post and Share Replays.

What are the trends for live shopping? ›

Live shopping is booming: The live streaming e-commerce market is expected to grow to $245.15b by 2026. The trends are: Live shopping with influencers, the integration of AR and VR technology, the trend toward one-to-one live shopping sessions, and the intersection of live shopping with social commerce.

How do you get paid on live? ›

How do you monetize live streaming?
  1. Pay-per-view live streams. The simplest way to make money live streaming is to use a pay-per-view strategy. ...
  2. Memberships. ...
  3. Donations. ...
  4. Sponsorship and advertising. ...
  5. Merchandise. ...
  6. Social media platforms. ...
  7. Professional live-streaming platforms.
Feb 3, 2023

Is live shopping effective? ›

Live shopping is also a memorable and engaging way to launch a product or campaign. Introducing a product through a livestream is effective in creating a buzz and tracking your engagement. It also presents an opportunity to maximize influencer marketing.

What is online live shopping? ›

Livestream shopping, or simply live shopping, is a marketing strategy wherein a host, usually an influencer or a celebrity, promotes a product through a live video.

What is a live shopping platform? ›

Livestream shopping (also known as live video shopping) is used by brands to promote and sell products through livestreams on digital platforms, often in collaboration with influencers.

Does TikTok have live shopping? ›

TikTok live shopping is an e-commerce experience that offers brands an opportunity to showcase their products in real-time through livestream events. By participating in these events, TikTok users can purchase products without leaving the app.

Does Facebook have live shopping? ›

Sell products, interact with viewers and gain potential customers in real-time live streams.

How does Facebook live shopping work? ›

Facebook Live Shopping allows merchants to host live-streamed shopping events, where they can showcase their products in real-time, provide product details and payment options and interact with existing and potential customers directly from their live broadcast.

Is Facebook getting rid of live shopping? ›

Facebook announced it will no longer allow users to host live shopping events beginning October 1, 2022, Meta announced in a blog post.

Is Instagram live still a thing in 2023? ›

Is Instagram Live still a thing? Anyone with an Instagram account can go live with the mobile app in 2023. Many brands and influencers use Instagram Live to have informal conversations with their followers and build a stronger community on the platform.

Is Instagram shopping successful? ›

Is Instagram Shopping Driving Sales? The Results Are In: Brands Report +1,416% Traffic, +20% Revenue.

How is online shopping growing? ›

Right now, 70% of Americans are shopping online. In 2022 alone, there were a total of 268 million digital buyers in the United States and by 2025, this number is likely to reach 285 million. Their purchases represent about 18% of the global ecommerce. This leads to great earnings for the US ecommerce industry.

How do I increase my live selling viewers? ›

  1. #1. Schedule your Facebook Live EVENT ahead. ...
  2. #3. Supercharge your Facebook business page.
  3. #4. Post you livestream in Facebook Groups.
  4. #5. ...
  5. #6 Promoting it on other channels like Instagram, Twitter and Email.
  6. #7 Use hashtags to find your audience.
  7. #8 Add Give Away and Discount exclusively for your live selling.
Feb 25, 2022

Is online shopping still growing? ›

Mobile commerce accounted for more than $360 billion in sales in 2021. In 2021, retail m-commerce sales in the United States exceeded 360 billion. This figure increased to 431.4 billion in 2022. And it's expected to grow even further to 511.8 billion in 2023, 604.5 billion in 2024 and 710.42 billion in 2025.

How popular is online shopping today? ›

No, online shopping is not more popular than in-store shopping. As of 2021, In-store shopping is still more popular than online shopping, with 80.9% of sales being offline, and 19.1% being online. Even in 2022, online retail sales have only reached 21% of all global sales.

Is online shopping a technological trend? ›

The growing popularity of online retail is directly related to the emergence of new eCommerce technologies. Online shopping has become more convenient than ever. As a result, it is not surprising that the eCommerce sector is forecast to grow by almost $13 trillion in the 2022–2027 period.

How much does TikTok pay for live? ›

These are then converted to diamonds before being deposited as real money in your account. Further, TikTok pays you if your account holds more than 1500 followers for live shows. Therefore, you can expect to earn around $100 for every 10,000 followers on live shows.

How big is the livestream shopping market? ›

Dive Brief: The livestream e-commerce market will reach $31.7 billion by the end of this year, nearly triple its size in 2021, according to a report by Coresight Research and Bambuser. The report projects that the market will reach $67.8 billion by 2026, accounting for over 5% of e-commerce.

What is Amazon live shopping? ›

Amazon Live is part of Amazon's suite of brand content solutions for helping you drive discovery and connect with shoppers, also known as mid-funnel marketing or consideration advertising.

When did live shopping start? ›

Livestream shopping, or live shopping, first appeared in 2016, when Alibaba introduced it as part of Single's Day. It was an instant success and became a perennial part of the event. Other platforms and retailers in China took note, and by 2019, livestream shopping was growing like gangbusters.

Can you do live sales with Shopify? ›

Just connect your FB/IG pages and you're ready to sell live! SoldLive reads in all your Shopify product inventory and assigns #'s to them. Your shoppers comment the # to get DM'd a checkout link for that product.

Why does live shopping work in China? ›

“People in China go to live-stream shopping events because of great discounts, a [fear of missing out], drop collections and so on,” Bogliari said. In contrast, most US platforms do not provide any strong push to live shopping events on their sites, and there are not enough good hosts, he said.

Is Amazon live shopping free? ›

Amazon Live is free and there are no costs for brands to stream live videos using the creator app.

What is live social selling? ›

Live selling lets you connect with your customers right away and learn more about them at the same time. Social selling allows you to reach a wider audience online quickly and easily while engaging shoppers in the downtime between your live sale events.

What does Instagram shopping do? ›

Your shop is a place to sell and share your brand story, where people can browse products and explore collections. Your shop is a place to sell and share your brand story, where people can browse products and explore collections.

How does shopping through Instagram work? ›

An Instagram Shop lets you integrate your product catalog with your Instagram profile. In turn, this allows you to promote your products directly to Instagram users through posts, Stories, in the Explore tab, and in a special Shop tab on your profile. Let's look at some examples of how Instagram Shops work.

What is Instagram shopping vs checkout? ›

When you set up a shop on Instagram with checkout, your customers will make purchases directly in the Instagram App. For businesses that have an Instagram shop without checkout, product tags will direct to products on their website. There are a number of reasons why checkout can help your business succeed on Instagram.

Can I trust Instagram shopping? ›

Instagram stores are typically safe. However, it's essential to do your research and vet each store you visit. Regardless of the protections Instagram offers, you can become vulnerable to purchasing from fraudulent sellers or unknowingly buying counterfeit products.

Does anyone use Instagram Shopping? ›

Instagram Live Shopping

Every month, 130 million people engage with a shoppable Instagram post, which is why Instagram unveiled IGTV Shopping.

How do you qualify for Instagram Shopping? ›

Commerce Eligibility Requirements
  1. Comply with our policies. Comply with our policies. ...
  2. Represent your business and your domain. Represent your business and your domain. ...
  3. Be located in a supported market. Be located in a supported market. ...
  4. Demonstrate trustworthiness. ...
  5. Provide accurate information and follow best practices.

Does Instagram Shopping cost anything? ›

There are no fees to process payments on Instagram. Was this helpful?

What are the two ways shopping works on Instagram? ›

About shopping on Instagram
  • Shops: A customizable storefront that lets people shop directly on business profiles.
  • Shopping tags: Tags that feature products from your catalog that can direct customers to purchase those products from your website or in app.

How many people actually use Instagram shopping? ›

Around 60% of Instagram users discover new products and services on the platform. How many users tap on Instagram shopping posts per month? Approximately 130 million users tap on Instagram shopping posts per month.

How many people use Instagram shopping? ›

130 Million Instagram Users Click on A Shopping Post Every Month. According to Instagram shopping statistics more than 130 million people are using the Instagram app for shopping, and select a shopping post every month that they click on.

What are the disadvantages of Instagram shopping? ›

One potential drawback to Instagram Checkout is limited access to data. Users' payment and shipping information is stored in Instagram, and merchants will only be allowed to access necessary customer information to fulfill an order — i.e., they'll have less data than if the customer purchased directly on their website.

Does Instagram shop take money? ›

What are the commission rates and selling fees for checkout on Instagram? Instagram shop selling fees are automatically deducted from your payouts. Instagram's selling fee is 5% per shipment and does not vary by product category. Shipments of $8 or less have a flat fee of 40 cents.

How do you receive payment on Instagram? ›

Visit your Instagram professional dashboard. Tap Get paid in chat. To finish setting up payments in chat, you'll be asked to provide your personal or business information and bank account details. Learn more about what you can do if you're having issues signing up to sell in Instagram Direct.

Which is safer Facebook or Instagram? ›

Instagram has fewer privacy controls than Facebook, but there are settings you can adjust if you want to exert some control over your information. You can't keep data collected by Instagram away from its parent company, but you can adjust how certain information is used.

Who is Instagram owned by? ›

Instagram is owned by Meta Platform, an American company whose former name is Facebook. Meta acquired Instagram in April 2012 for the amount of USD $1 billion.


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