What is live shopping and will it take off?

After graduating college Kelsey Krakora worked full time in a steakhouse, bartending and serving meals.

She had dabbled with selling clothes online, but only part-time.

But in 2021 that all changed for Cleveland-based Ms Krakora.

She switched to selling clothes on Whatnot and then Poshmark – online marketplaces where people can also use live video to sell items.

“My first live show with Poshmark was 27th November 2022. I sold zero things on my first show… but that didn’t last long!”

Now she sells around 100 items per show, worth about $1,000 in sales (£773).

Her shows are on average three hours long and she does between two and three a week.

“These events are inclusive, welcoming, you can shop in your PJs, and there’s no need to head to the shopping mall,” says Ms Krakora.

Live shopping has been popular in the Asia-Pacific region for some time, where social networks such as China’s Douyin regularly host live shopping streams, but now European and US brands are experimenting with this new way of selling their products.

Live shopping is a close relative to shopping channels like QVC, where viewers are urged to call in and buy the products demonstrated by presenters.

But live shopping acts as a quicker shortcut from buyer to product, especially in the era of one-click purchases, made popular by online retailers such as Amazon.

Also, as younger generations increasingly cut the cord and can’t access cable TV, shopping channels don’t hold the same relevance as they once did.

It’s estimated the live shopping market has reached $32bn, with the most active sectors being fashion, cosmetics and collectibles.

A 2024 survey from digital commerce platform VTEX found that 45% of US consumers have browsed or purchased from live shopping events in the past 12 months.

Guillaume Faure, chief executive of LiveMeUp, which provides live shopping video software, remembers when interest in live shopping surged.

“When Instagram introduced Reels, and when YouTube launched Shorts, we saw live shopping really take off.”

He’s noticed the popularity of tutorials and how-to videos in live shopping events, such as how hosts can teach shoppers how to apply a certain type of make-up, or arrange a variety of flowers to deliver the most evocative bouquet.

However, some analysts think that live shopping is likely to have a limited appeal.

“Many companies have tried live shopping but it simply doesn’t scale,” says Sucharita Kodali, retail analyst at Forrester Research.

“Maybe it works in China where they don’t have the same kind of store density we have in the US, where it’s better for consumers to go and try something on rather than watch a host try on a piece of clothing,” she adds.

Jonathan Reynolds, academic director of the Oxford Institute of Retail Management, University of Oxford, also highlights that the Chinese market is different.

“In China, so-called key opinion leaders (KOLs) like Li Jiaqi, the so-called ‘Lipstick King, are well established,” he says.

“Li has carefully built his personal brand to demonstrate his expertise and build consumer trust. KOLs are also working within much more sophisticated platform ecosystems,” Mr Reynolds explains.

Even Ms Krakora admits that not all products work on a live shopping stream.

For example, she prefers to shop for jeans in-person. “I’m tall, and I have specific cuts of jeans that I wear,” she says, “and there are tried-and-true styles and brands I like.”

Bruce Winder, a retail analyst in Toronto, also says that for some shoppers, the convenience of live shopping might be too attractive.

“Consumers may get addicted to the show or channel… and some consumers may not be able to stop watching and spending as they get caught up in the moment,” he adds.

Despite those potential pitfalls, major brands and platforms have jumped on the live shopping bandwagon.

Nordstrom, Kit Kat, Samsung and L’Oreal have sold products during these streams as hosts showcased new or discounted products, and joining Poshmark as the host for these events are Amazon, eBay, TikTok, YouTube and Instagram.

“Live shopping lets shoppers have a conversation with someone who knows the products being sold, and that generates a lot of excitement,” says Manish Chandra, the chief executive and founder of Poshmark.

“It also creates a community where other shoppers are in the same show, and it’s really a different experience than a traditional shopping trip.”

For some brands live shopping has been a game-changer.

High-end fragrance brand The House of Amouage partnered with Nordstrom in late 2024 to bring their live shopping events to the US.

Oman-based Amouage was following up on the success they enjoyed in China. In the 140 live streams they hosted with Chinese influencers on the social platforms Douyin and Taobao in 2023, they sold more than 3,000 units.

The firm’s chief creative officer Renaud Salmon says it’s helping the company learn about what its customers want.

“In the past, we would have used customer satisfaction surveys,” says Mr Salmon, “but with live shopping, we get feedback right away and I bring that back to my team to help refine our products.”