AI may not be the immediate future of online retail, but Live Commerce is

‘Live commerce’ is a blend of livestreaming and e-commerce that enables real-time product showcasing and purchasing, and it is emerging as a transformative force in online retail, with projected growth from $20 billion in 2022 to $55 billion by 2026.

Market dynamics and consumer behavior: The integration of livestreaming with shopping platforms is reshaping how consumers discover and purchase products online.

• Live commerce has demonstrated the ability to enhance the online shopping experience by up to 60%, with 46% of U.S. consumers having already made purchases through live shopping platforms
• TikTok has established itself as a frontrunner in the live commerce space, leveraging its massive user base and engagement-driven platform
• Whatnot, focusing on collectibles and niche products, exemplifies the successful specialization within the live commerce sector

Strategic advantages: Live commerce offers unique benefits that artificial intelligence solutions cannot replicate.

• The format enables real-time interaction between sellers and buyers, creating authentic human connections that build trust
• Sellers can immediately address customer questions and concerns, providing a level of personal engagement that automated systems cannot match
• The immediacy and authenticity of live commerce help brands establish stronger emotional connections with their audience

Implementation guidelines: Successful live commerce strategies require careful planning and execution.

• Pre-event promotion is crucial for building anticipation and ensuring strong viewer turnout
• Interactive elements like live Q&A sessions should be incorporated to foster engagement and build credibility
• Clear calls-to-action during livestreams help convert viewer interest into actual purchases
• Brands should focus on creating authentic experiences rather than solely chasing technological trends

Market opportunity: The growing disconnect between major brands’ AI-focused strategies and consumer desire for human connection presents an opening for entrepreneurs.

• Smaller businesses and individual sellers can leverage live commerce to compete effectively against larger competitors
• The format allows for direct engagement with niche communities and specialized market segments
• Early adopters can establish strong market positions as the sector continues its rapid growth

Future outlook: While AI continues to receive significant attention in e-commerce, the human-centric nature of live commerce positions it as a potentially more impactful force in shaping the future of online retail, particularly as consumers seek more authentic and interactive shopping experiences.