/ecom

PRD, Live Commerce

Summary

Live Commerce

A live commerce application is one that provides a platform for merchants to interact with customers in real-time and demonstrate products in order to increase sales. Live commerce applications integrate live streaming capabilities with an e-commerce storefront, allowing customers to purchase products while watching the live stream. Allowing audience members to comment and ask questions in real-time helps consumers to come to purchasing decisions faster.

Who Manages Live Auctions?

Live auctions are managed by the merchants conducting the auctions, as well as moderators.

Why Virtual over In-Person

The pros of online shopping for a merchant include:

  • Wider reach: Online stores can be accessed by customers from all over the world, which can help merchants to expand their customer base and increase sales.
  • Lower costs: Online stores do not require the same costs associated with physical stores such as rental or property maintenance, utilities, insurance and so on. This can result in lower overhead costs for merchants.
  • Greater flexibility: Online stores can be open 24/7, which can allow merchants to reach customers at any time.
  • Automation: Many e-commerce platforms come with built-in features such as inventory management, shipping and tax calculation, report generation and so on.
  • Data collection: Online merchants have access to a wide range of data about their customers such as purchase history, browsing behavior, and demographic information, which can help them to target their marketing efforts more effectively.

For a consumer, the pros of online shopping include:

  • Convenience: Online shopping allows customers to shop from any location and at any time, without the need to travel to a physical store.
  • Variety: Online stores often have a wider selection of products than physical stores, which can make it easier for customers to find what they're looking for.
  • Comparison shopping: Online customers can easily compare prices and product information from different retailers, which can make it easier for them to find the best deal.
  • Reviews and ratings: Customers can easily read reviews and ratings of products and merchants before making a purchase, which can help to build trust and confidence in the buying process.
  • Personalization: Online shopping allows customers to save their preferences and previous purchase history, so they can easily find what they are looking for, this helps to enhance their shopping experience.
  • Returns and refunds: Many online retailers have easy return and refund policies, which can provide customers with peace of mind when making a purchase.

Also, when having a brick and mortar store you will still need an online presence, so in many ways it's unavoidable!

Live Commerce Landscape

The current live commerce landscape is diverse and constantly evolving, with a variety of platforms, tools, and technologies being used to facilitate live commerce experiences.

Social media platforms, such as Instagram, TikTok, and Facebook, have become popular venues for live commerce, with many influencers and brands using live streaming features to engage with customers and sell products. E-commerce platforms, such as Shopify and Amazon, have also begun to integrate live streaming features, allowing merchants to sell products directly through live streams.

Live commerce apps and services have also emerged to provide a more dedicated experience for both the consumers and sellers. Some of these apps and services focus on specific types of products or verticals, such as beauty, fashion, and home goods, while others offer more general live commerce functionality.

Live auction is also a new trend in live commerce which allows customers to bid on products and buy them in real-time. This creates a sense of urgency and exclusivity which can increase the perceived value of products and drive sales.

In a live commerce auction, a product or group of products is presented to customers via a live-streamed video. The auctioneer or host, typically a salesperson or influencer, describes the product and its features, and then opens the floor for bidding. Customers can place bids on the product using their mobile device or computer, and the highest bid at any given time is displayed on the screen.

In addition to these, there are new features and technologies being developed specifically to enhance the live commerce experience. For example, virtual reality and augmented reality are being used to create more immersive live commerce experiences, while chatbots and AI are being used to automate customer interactions and streamline the sales process.

Overall, the live commerce landscape is quite dynamic and continues to evolve as new technologies, platforms, and trends emerge. Live commerce has the potential to revolutionize e-commerce by providing a more engaging and interactive shopping experience for customers, and it will be interesting to see how the industry develops in the coming years.

In 2020, live commerce accounted for 10.6% of China's total online retail market. (Source)

The main platforms in China include Kuaishou, Douyin (TokTok), and Taobao Live.

Live commerce auctions are a form of e-commerce that involves live-streaming video and real-time bidding. This allows customers to watch and participate in the auction in real-time, rather than placing bids in advance or at a fixed time.

Competitive Landscape

Some of the largest live commerce platforms include:

  1. Amazon: In 2020, Amazon launched a live streaming feature on its platform called "Amazon Live", which allows businesses to host live streams to promote their products and engage with customers in real-time.
  2. Taobao Live: Taobao Live is a live streaming platform that is integrated with the Alibaba-owned e-commerce site Taobao. It's widely used in China and allows merchants to showcase their products to potential buyers through live video.
  3. Shopify: Shopify is an e-commerce platform that offers live streaming capabilities for its merchants. The company's "Live" feature allows businesses to host live streams directly from their online stores to connect with customers and drive sales.
  4. Lazada: Lazada is a popular e-commerce platform in Southeast Asia that has recently introduced live commerce feature which allow sellers to host live streams and sell products in real-time to their customers.
  5. H&M: H&M, the clothing retail giant, has been experimenting with live commerce, starting a live streaming campaign where the customers could ask questions and shop the outfits on the models during the livestream.
  6. Sephora: The beauty retail giant have been experimenting with live commerce, in which they have beauty experts or influencers demonstrating products while on live stream and customers can purchase them at the same time.
  7. Wayfair: One of the biggest home furniture e-commerce company also have been testing live commerce on their platform, in which they showcase new furniture collection on live stream and customers can purchase them on the spot.

Features

Here is a list of core features for many live commerce platforms:

Feature Description
Live streaming platform Platforms that enable live streaming for e-commerce such as Amazon Live, Taobao Live, Facebook Live, etc.
Product integration Integration of live streaming with e-commerce storefronts, allowing users to purchase products while they watch the live stream
Live shopping A feature that allows users to buy products during live streaming events, which can include sales, product demonstrations, or other interactive activities.
Language support A feature that allows live streaming to support multiple languages, enabling merchants to reach a wider audience
Live translation A feature that allows real-time translation of the host or guest's speech, making it possible for a global audience to understand the content of the live stream.
Audience engagement A feature that allows live streaming platforms to engage with the audience by displaying comments, polls, and emojis in real-time.
Host controls A feature that allows live streaming hosts to control elements of the live stream, such as adjusting camera angles and sound levels, or moderating comments.
Monetization A feature that allows live streaming platforms to generate revenue from live streaming events, such as through sponsored content, pay-per-view, or in-stream purchases.

And a table showing how each of the major platfoms compare with these features.

Platform Amazon Live Taobao Live Shopify Lazada H&M Sephora Wayfair
Live streaming platform Yes Yes Yes Yes Yes Yes Yes
Product integration Yes Yes Yes Yes Yes Yes Yes
Live shopping Yes Yes Yes Yes Yes Yes Yes
Language support Multiple Chinese Multiple Multiple Multiple Multiple Multiple
Live translation No No No No No No No
Audience engagement Comments and hearts Chat and gifts Chat and emojis Chat and reactions Comments and hearts Chat and emojis Chat and emojis
Host controls Basic Advanced Basic Basic Basic Basic Basic
Monetization No Yes Yes No Yes Yes Yes

Solution Requirements

User Personas

  1. Merchants: Small business owners who want to interact with customers in real-time and demonstrate their products to increase sales.
  2. Customers: Shoppers who are interested in purchasing products and engaging with merchants in real-time.
  3. Hosts: Individuals or teams responsible for creating, hosting and managing live streams.

Core Features

Many of the above core features are available through a combination of Agora RTC, Signalling and Chat. Others will need to be added through third party solutions.

  • Real-time Features
    • Host controls
    • Gifting (Banuba)
    • Chat and commenting
    • Push Notifications
  • Checkout
    • Payment gateways
  • CRUD Database
    • User Accounts
    • Product Catalog
    • Shopping Cart

For the sake of this reference app, we will focus on the features that will surround live streaming and payments. Keeping the database side of things defined, but not implemented.
The main reason for this is that when developers come to try out the reference app, we do not want them to have to also set up and link a server for user accounts. They should instead be able to run the app on two devices and see all the features Agora can offer with ease.

Requirement Description
Live streaming (Host View)
  • Set up and customize live streaming
  • Display products in the live streaming view and enable real-time purchase
  • Interact with customers through moderating and responding to comments, questions, and feedback
  • Monetization options for the live stream
  • Real-time inventory management and dynamic pricing
  • Real-time push notifications for new orders, comments and other updates
Live streaming (Audience View)
  • View live streaming from multiple merchants and switch between them
  • View product details, add items to the cart, and purchase products during live streaming
  • Interact with other customers and the host through commenting and asking questions
  • Receive real-time translation of host speech in different languages
  • Receive real-time notifications of live streaming events
  • View previous live streaming events and purchase products that have been showcased
  • Save and track their favorite live streaming events and merchants
  • Choose from a selection of gifts, which appear as AR filters
Product integration
  • Integration of live streaming with an e-commerce storefront for real-time product purchase.
Storefronts
  • Merchants can setup storefronts, which show scheduled shows, a small description of the store, and an image.
  • Customers can filter stores by category.
  • Customers can leave ratings and reviews on stores.
Purchases
  • Payment system setup in live streams

Acceptance Criteria

Although all possible features would be ideal, these are the features we should expect from this app, with a quick note about how detailed each one should be.

Title Description Priority Notes
Find live streams Users must be able to view live streams of products being sold in real-time. P0 The mechanism for showing users all the live streams will be similar to tiktok, using ACarousel.
Real-time bidding Users must be able to place bids on products in real-time during live streams. P0 Achieved using RTM, having users see the latest price and the next available bidding price.
Payment processing Users must be able to securely make payments for their orders within the app, using a variety of payment methods such as credit card, debit card, and mobile wallet. P0 These details will be completed through Apple Pay.
Product details Users must be able to view more detailed information about each product, including images, descriptions, and pricing. P0 Limited detail will be essential, more information will be available by showing the product as a card while bidding is in progress.
Up to date The app must be compatible with the latest versions of iOS, utilising the latest advancements in iOS, including SwiftUI. P1 The app will be built with the intention of using the latest features available.
Interactions Audience members can add chat messages, hearts, and send gifts to the host P1 Chat messages and hearts will be conducted through RTM. Hearts and gifts trigger both a confetti effect, as well as a banuba filter for a short time (~10 seconds)
Performance The app must be able to handle high traffic and perform smoothly without any lag. P1 The app will have appropriate memory management, which include making sure to turn off video streams once the user is no longer watching them. This will also contribute to the scalability of the application.
Order placement and tracking Users must be able to place orders for products and track the status of their orders within the app. P1 This is important for an end product, but in this scenario we will show dummy data, to avoid setting up a backend for this project.
Push notifications Users must be able to receive push notifications for new products, upcoming live streams, and updates on their orders. P2 This would be a great feature to add using the builtin tooling. It may be built out in part, but not required to run and test the app.
Analytics The app should have an analytics system to track user engagement, retention, and conversion rate. P2 Some video stream data such as number of streamers and watchers are automatically collected by Agora's video SDK. More data will be collected through Firebase.
User registration and login Users must be able to register for an account and log in to the app using their email and password. P2 In this scenario we will simply allow any username and password match, to avoid setting up a backend for this project and recording login data.