Amazon is testing a popular ecommerce trend which first emerged in China.
Will this trend take off in other markets?
Small Businesses Showcased Through Amazon Live
Livestreaming commerce — a trend that first gained momentum in China— has been increasingly embraced by Amazon in the United States. During its 2021 Prime Day event, Amazon featured livestreams as part of its Small Business Showcase, generating tens of millions of customer views.
Featured livestreams generated well over 50,000 views during Amazon’s Prime Day event
Through the Small Business Showcase, Amazon positioned itself as an ally to innovative startups and other small businesses with positive social missions such as LuminAid. This comes at a time when Amazon is facing increased scrutiny for using its market position to unfairly stifle competition, potentially leading to new anti-trust legislation.
Regardless of the motivation, Amazon Live appears to be building momentum. For perspective, in November 2020, a typical livestream on Amazon might have a few hundred views. During the two-day Prime event, it was not unusual for a featured livestream broadcast to generate over 50,000 viewers.
While featured broadcasts generated impressive viewership, other Prime Day livestreamers struggled to gain a following, with viewers in the low hundreds. One mother and daughter team, for example, admitted they were, “still flying by the seat of our pants.” Towards the end of their broadcast, the duo acknowledged that they need a consistent time slot so that fans and followers know when to tune in.
Building a consistent audience remains a challenge for many US live streamers.
Despite impressive Prime Day results for featured Amazon Live events, livestream commerce in the US still trails Asia in terms of popularity. Livestream commerce in China is estimated at around US$120 billion in 2020, compared to about $11 billion in the US. Still, with other prominent platforms and brands experimenting with livestreaming, the trend is likely to accelerate. The key will be building relationships with consumers and promoting their channels across other social media platforms.
Looking Ahead
Prime Day appears to have been successful in generating awareness of livestream commerce in the US and generating trial. The real litmus test, however, will be during Black Friday and cyber week where many brands and retailers are likely to fully engage in the livestream commerce trend.
Additional sources: Amazon, “The Coco Show” on Amazon Live, Coresight Research via CNBC
Pingback: The Rise of Recommerce - Aperture Insights