The better you are – the more expensive it gets. This is more or less how one could summarize the options and offers of live video shopping that e-retailers face today. It might seem like an incomprehensible business model – and there are mainly three reasons why this has happened.
Live video shopping is quite a new phenomenon, the business models are technology-oriented, and there are too few players in the field. In this blog post, Johan Klitkou, CEO of Streamify, tells you more about his views on this development and shares his thoughts on what type of platform e-retailers need – and deserve – to be able to increase sales and profitability.
Live video shopping, the ability to shop directly during live-streamed broadcasts on social media, is a relatively new phenomenon, at least in Europe. Therefore, e-retailers who are curious and want to get started right away do not have many good examples to follow. In addition, the majority of the solutions available on the market today have business models that are outright counterproductive.
What do I mean by business models being counterproductive? The counterproductive element is to charge for the number of viewers and data storage in some form. Back in the days, this was a common pricing model – but that is a thing of the past! This is a technology-oriented business model that has passed its expiration date.
Further, the cost becomes difficult to predict, and the e-retailer also misses out on the whole point of live video shopping. Most people want to have many viewers and better communication with them, which will lead to higher sales. Thus, to charge clients for data storage and the number of viewers is like cutting the branch the retailers are sitting on.
The market for live video shopping is still only in its infancy stage, which means that there is no best practice yet. Therefore, few players can break new ground and must assess and evaluate their business models together with their customers. The platforms for live video shopping that initially attract many users will continue to attract even more – causing a snowball effect. And it does not matter much whether the offer itself is correct and entirely satisfying.
What the market needs right now is a platform that, at a predictable cost, can give you as an e-retailer the opportunity to increase your sales. At Streamify, we have invested both time and code to create a platform and a business package that live up to these requirements.
Are you still skeptical? Get in touch with us and let us convince you! On LinkedIn, you’re very welcome to follow me and Streamify.
Johan Klitkou, Founder and CEO of Streamify