Livestream Success Overseas Having accounted for , interactive live-stream shopping is the fastest-growing e-commerce format in the country. 2 percent of American e-commerce in 2022 And while $20 billion in gross merchandise volume for these live-stream shopping apps is promising and not entirely surprising given the hype, what may be surprising is the how and the where. Live-stream shopping is an interactive e-commerce experience where a host or influencer showcases products on camera, much like QVC popularized in the 1980s and 90s. The modern twist, of course, is that viewers can ask questions, interact, and complete a transaction without leaving the video stream. This is a mainstream experience in China and has been for years, where live-stream shopping accounted for nearly in 2022. 20 percent of all e-commerce When venture capitalists and big tech firms jumped at the opportunity to fund efforts in the United States, there was an initial push to replicate the Chinese market where one player, Alibaba’s Taobao Live, accounts for around of the segment’s gross merchandise volume. 80 percent Failed Attempts Attempts by Meta, which took place on both Facebook and Instagram, fell flat due to a struggle to capture user attention for longer-form commerce content. Live-stream shopping was on Facebook in October and on Instagram in March. shut down Amazon, which quietly launched Amazon Live, has for the platform which is a nice way of saying brands aren't sure if they can trust strangers live-streaming their products. struggled to get brand buy-in A bevy of startups has come (and already gone) in an effort to become the American Taobao. Some, like Popshop, have shown signs of promise, but such efforts to be the be-all of American live-stream shopping have not landed. Based on platform reviews and fundraising activity, it’s clear the streaming platforms that have found traction have done so by narrowing the scope of their product offerings. Consider, for example, that three companies focused on trading cards and collectibles have raised more than $500 million. And it’s not just fundraising: , , and have done enough to attract the attention of Topps parent company Fanatics which the Fanatics Live streaming platform in the second half of 2023. Whatnot Loupe Drip Live plans to release Changing Trends This race toward specificity mimics a recent shift in social media behavior: . Increasingly, people are joining niche communities where users find more direct, private conversations and less noise On Meta’s Facebook, overall American usage has stalled (or ) but the use of interest-based, private Facebook Groups has grown substantially: more than 1.8 billion users were in groups, up 80 percent from 2016 to 2020, and engagement rates are high. shrunk The trend extends to user response to concerns expressed about Twitter: rather than one single replacement for the troubled social platform, there have been many. Individuals may find their politics best suited for a Truth Social, Gab, or Parler. Sports fans have taken to Discord and Telegram channels where they can chat with their fellow fans like the AOL chat rooms of yore. The fundamental structure of the social network Mastodon is one where users join servers that fit a common interest, taste, or goal. . These tribe-like social media are having their moment Another way live-stream shopping platforms seem poised to mimic a recent social media trend is in their seemingly inevitable march toward reliance on creator funds to build and retain their pool of creators. Creator funds are designed to incentivize creators and strengthen the bond between the influencer and the platform. $1 billion for a three-year fund in 2021. YouTube, Snap, and Instagram followed with to similar programs. Tik Tok set aside hundreds of millions in commitments Whatnot, Loupe, and Drip Live face the same challenge: With their similar apps and websites operating in the same niche, sellers (much like influencers or creators) become the differentiator. . Platforms that do the most for their sellers will win; whether that be in the form of juiced payouts, lower sales commissions, or seller support For America-focused founders and funders, it has not and will not be as simple as copy-and-paste. While one firm managed to capture 80 percent of China’s massive live-stream shopping sales channel, such dominance does not appear possible in the modern American discourse where we’re all retreating to our respective corners of the internet. On the bright side, the brick-by-brick development of a highly-fragmented market like this will mean opportunity for many, not just a select few.

This story contains new, firsthand information uncovered by the writer.

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The Great American Fragmentation of Livestream Commerce

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