ARTICLES
3
min read time
October 3, 2023

Live Shopping is the Future, But X Isn't the Platform for It

Paris Hilton partnering with X (formerly Twitter) for live shopping is intriguing, but X might not be the ideal platform for brands, at least for now.

Live Shopping is the Future, But X Isn't the Platform for It
Table of Contents

The news that Paris Hilton has partnered with X, formerly known as Twitter, to bring live shopping features to the platform is certainly interesting. At Sprii, we obviously advocate for live streaming being the future of e-commerce, and this development seems to validate that belief. However, while the potential is there, I don't believe X is the right platform for brands to embrace live shopping - at least not yet.

As I’ve written before, Live Shopping represents a major opportunity for brands to engage with consumers in new ways. The ability to showcase (and sell) a brands product in real time while interacting with customers initially proved unbelievably successful in China, and this new ‘trend’ is growing steadily in the West. It is important to note that social platforms, like Facebook and Instagram, are still leading the way by rolling out live shopping capabilities to the greatest success currently.

And it’s for the reasons above that, on paper at least, Hilton's deal with X makes sense. Despite the platform’s recent controversy and backlash, the platform still has a large user base and adding live shopping could open new revenue streams. However, X faces some major hurdles if it wants live shopping to thrive on its platform:

Reliability Issues - X has struggled with stability and uptime, especially for large live video streams. If shoppers can't depend on the streams to work consistently, it defeats the purpose.

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Lack of Shopping Focus - People visit X for news and conversation, not shopping. While some may stumble upon live shopping content, it's doubtful that X will become a destination for it. Instagram and Facebook are better positioned given how social they already are around commerce.

No Direct Shopping Integration - Unlike Sprii which allows direct checkout from live streams, X will reportedly only allow browsing a selected ‘catalogue’ and then clicking through to external sites. It is our belief that this extra friction hurts conversion rates. TikTok struggles with this same issue.

With Sprii, customers can buy directly from live shopping

For these reasons, I believe brands interested in exploring live shopping should still look to Facebook and Instagram as the front-and-centre platforms. The tried and tested community, features and reliability are still far superior there for social commerce.

Could this change down the line if X makes live shopping more of a priority? Absolutely. But the company has given little indication that commerce is a major focus right now. While Paris Hilton's star power brings attention to the possibilities, brands would be wise to take a wait-and-see approach when it comes to live shopping on X for the time being.  

The foundations just aren't sturdy enough yet to warrant shifting significant resources and ‘marketing dollars’ there. But time will tell.

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Macdara Duncan
International Sales Director
Author
Macdara Duncan
International Sales Director

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Sprii in Action

During a Live Shopping event, Sprii automatically replies to comments, creates orders for your customers, sends them a link to their basket, and handles payment and shipping.

5. Create hype & excitement during your events

The beauty of Live Shopping is that it can be used in so many ways. This is particularly valuable during Black Friday and Cyber Monday when businesses are looking to engage their viewers in as many ways as possible.

Here are 3 ways to create hype and get customers excited about your Black Friday events so you can achieve your revenue goals.

5. Create hype & excitement during your events

During Black Friday and Cyber Monday, potential customers often experience an intense pressure to participate in the shopping frenzy, driven by the fear that they will miss out on the best deals and discounts if they don't join in.

Live Shopping enables viewers to make purchases instantly while watching the stream, which can be especially effective during Black Friday and Cyber Monday when time-limited deals are available. This instant purchasing capability can drive sales during Live Shopping events.

With Live Shopping, consumers get the personal assistance of an in-store shopping experience and the convenience of being able to shop from the comfort of their own sofa or favorite coffee shop.

Viewers can get information from the retailer in real-time by asking questions directly in the Live Shopping event.

During a live show, viewers can ask questions and get answers in real-time. Even better, they can interact with each other and share their experiences with your products.

AspectTraditional E-Commerce JourneyLive Shopping Journey
Marketing ApproachHigh ad spend and several channels to attract shoppers to webshopLeveraging existing social media followers
NavigationRequires navigating through a static webshop to find products.Requires nothing more than watching a live video to discover new products.
Product PresentationProducts are presented through static images. Products are presented in a live video by engaging hosts.
Customer ExperienceFeels like a business transaction.Feels like a personal connection.
Engagement and InteractionLimited to static product descriptions, images, and occasional customer reviewsOffers real-time interaction between hosts and viewers, allowing for immediate Q&A, live demonstrations, and personalized recommendations
Customer ExperienceCustomers independently navigate the webshop and make purchase decisions without help.Customers are guided through products, receive helpful information, and can ask questions as well as see what others are writing and asking.
Conversion RatesRelies on well-designed websites and optimized marketing funnels to convert visitors into buyers.Often achieves higher conversion rates due to the sense of urgency and interactive nature of live events.
Customer Acquisition Cost (CAC)Higher CAC due to extensive marketing efforts across various channels.Typically lower CAC by leveraging social media followings and organic engagement during live events.
Return RatesHigher return rates due to customers not fully understanding the product before purchase.Lower return rates as live demonstrations provide a clearer understanding of the product, leading to more informed purchasing decisions.
Time to sellCan range from hours to weeks or even months. Often much quicker, ranging from minutes to hours.
Metric Traditional E-Commerce Live Shopping²
 Avg. Conversion Rate 2.5%³  Up to 60% (Sprii Data)
 Avg. View Time 54 seconds⁴ 20+ minutes (Sprii Data)
 Avg. Checkout Rate 45%⁵ 60% (Sprii Data)
 Avg. Return Rate 20-30%⁶ Under 10% (Sprii Data)
 Avg. Customer Acquisition Cost (CAC) +€50⁷ 0*
 Avg. Sales Cycle Hours, weeks, months Minutes