Live shopping is on the rise in the United States. Is this TikTok's opportunity?

According to the latest report from CNBC, in the United States, more and more platforms, enterprises and Internet celebrities are participating in live streaming sales activities. Coresight Research also raised the size of the US live streaming e-commerce market from US$32 billion to US$50 billion this year. With the huge traffic, TikTok is expected to become the winner.

my country is the birthplace of live shopping, which has now developed into a market worth $512 billion. In other economically powerful countries, live shopping is also beginning to show signs.

According to Coresight Research's latest quarterly report, it expects live streaming sales in the United States to reach $32 billion by the end of 2023. However, CEO Deborah Weinswig told CNBC that it has revised this forecast and expects it to reach $50 billion.

Coresight Research said that the initial forecast was set at the beginning of the year, and did not fully take into account the acquisition of Poshmark by South Korean Internet giant Naver, and TikTokShop was still in its infancy. It predicts that by 2026, live shopping is expected to account for more than 5% of total e-commerce sales in the United States.

According to CNBC, TikTok, Poshmark and eBay are currently testing live shopping features. eBay's Chief Product Officer Eddie Garcia is very optimistic about the growth of this new shopping method and will continue to invest.

At the same time, more and more influencers and small businesses are joining the live shopping track. For example, Anthony Velez, CEO of Bagriculture, a small business selling second-hand designer handbags, makes $100,000 a month from his seven physical stores in New York City.

Starting this year, Anthony Velez closed his physical store and devoted himself to the live shopping business, with current daily sales of $100,000. Velez revealed that he was live streaming on three to four platforms at the same time, and all indicators of live e-commerce exceeded those of other sales channels.

Meanwhile, Velez said he is still adjusting how much he spends on each platform, which has different costs. Currently, Velez pays 13% to 20% of each sale for fees such as payment processing and promotion.

Another influencer, Danielle Santana, mainly sells goods through Amazon live broadcasts. She can sell about 500 to 3,000 items in one live broadcast, and she has earned a six-figure income in a year on Amazon Live alone. Santana is one of the hundreds of anchors who live broadcast on Amazon every day.

While some platforms are increasing their investment in live streaming, Meta, the largest social media, has announced its launch. In March this year, it announced the withdrawal of the live shopping function on Facebook and Instagram. According to Coresight analyst Weinswig's estimate, companies committed to gaining a foothold in the live streaming field may see sales growth of more than 25%, and Meta will miss the opportunity.

As the live shopping market in the United States develops, TikTok will also usher in huge growth. Traffic is the basis of live streaming sales, and TikTok has 150 million monthly active users. The TikTokShop function also simplifies the shopping process for users. Watching live broadcasts and purchasing can be done in the app without leaving the app.

Editor✎ Ashley/

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