One of the emerging trends in e-commerce today is Live-streaming Shopping. This shopping format originally took off in Asia back in 2016, led by the giant, Taobao.

However, it wasn’t until 2020, propelled by the pandemic, that China saw a massive surge in this shopping trend.

China’s Live-streaming Shopping market skyrocketed from a market valuation of $3 billion to $423 billion between 2017 and 2022.

The allure of Live-streaming Shopping for e-commerce businesses is undeniable, with an average ROI hovering around 40%.

This rapid growth of Live-streaming Shopping in Asia prompted major e-commerce platforms and social media channels to jump on the live-selling bandwagon, including the likes of Amazon, Shopify, YouTube, Instagram, and TikTok.

Below, we introduce two Live-streaming Shopping platforms, TikTok Shop and Amazon Live, that are already making waves.

More and more brands are considering them as integral parts of their marketing and sales strategies.

What is TikTok Shop and how does it work?

TikTok Shop empowers merchants and creators to market their products directly to TikTok users within the app.

There are 3 sales methods within TikTok Shop:

• Live-streaming Shopping: Purchase in real-time during a live broadcast by selecting featured products or by clicking on the shopping cart icon.

• Product Videos: Buy directly from a video by clicking on the product link and shopping cart icon.

• Product Showcase: Shop straight from a brand or creator’s profile and discover items within the app.

What is Amazon Live, and how does it operate?

Amazon Live is part of Amazon’s advertising solutions suite. Aimed at Amazon merchants, it allows them to connect in real-time with their customers.

Essentially, it’s a platform categorized by topics, influencers, and more, showcasing products in action.

There are three ways to engage audiences via Amazon Live:

• Amazon Productions: Brands can join Amazon’s live broadcasts, which start at a base cost of $50,000. These meticulously planned broadcasts revolve around specific themes and inspirations.

• Amazon Influencers: Brands can sponsor live streams hosted by influencers via the Amazon Live Creator app.

• Self-serve Brands: Brands can broadcast directly from their iOS devices using the Amazon Live Creator app, maintaining full control over their content.

The success of Live-streaming Shopping lies not only in the real-time interactivity and keeping the entire sales process within a singular platform, minimizing drop-offs, but also in deeply understanding your audience.

It’s imperative for brands to pinpoint exactly which products to showcase, drawing insights from user search trends.

Marrying live streams with relevant hashtags—pertaining to the products or brands being promoted—can significantly enhance visibility and reach.

While TikTok isn’t inherently an online sales platform like Amazon and Shopify, it has the advantage of a vast active content creator base, striving to engage audiences and achieve virality.

TikTok Shop, with its exploratory focus, is an excellent choice for brands wanting to tap into new customer bases and fresh demographics.

Conversely, Amazon’s strategy leans more toward conversion, resonating with users who know precisely what they’re after and want a live demonstration before making a purchase.