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The business of live shopping

Daisy Kelly’s work was inspired by a personal problem; She had been plucking her eyelashes for years.

She hid her habit with eyelash extensions, but when beauty salons closed during Covid, Daisy decided to create a serum to help her lashes regrow.

She founded Glow For It from her mother’s kitchen table in 2020 while she was a student, and her business now generates sales of £6 million a year.

More than 40% of Daisy’s sales come from TikTok Shop UK, and increasingly from livestreams.

“I think live shopping gives people the connection and interaction we all crave… We actually made over £100,000 in a 12-hour TikTok livestream,” says Daisy, now 27.

“This categorically changed the course of my business.”

Daisy Kelly, founder of Glow For It [Daisy Kelly]

Daisy’s business is broadcast live from a studio for at least six hours a day, with different hosts interacting with shoppers, from showing off products to answering their questions.

“It’s like having 500 people in your store,” he says.

From Instagram Live to YouTube Shopping, eBay to Amazon Live, there are numerous platforms and marketplaces offering live broadcasts that connect sellers and customers. They are all different.

It seems that live shopping is becoming part of everyday consumer behavior for many.

According to new research from retail agency Savvy Marketing, 30% of customers surveyed said they had purchased something from a live shopping event.

“Major retailers need to grasp this,” says Savvy CEO Catherine Shuttleworth. “It went from nothing to something huge very quickly. If you don’t have a live sales strategy, you’re going to miss out.”

Manny Malik, on the right of the photo, is wearing a white polo shirt with the black Malik Butchers logo on it. To the left of the photo behind is a selection of packaged meats
Manny Malik from Malik Butchers [BBC]

TikTok Shop says its UK sales rose more than 30% year-on-year in June and live shopping is the fastest-growing format.

He says there are now more than 6,000 live streams every day.

An event at the century-old Covent Garden market hosted 20 small businesses with stands selling live to customers all over the UK.

Around two hundred people tuned in to watch Wolverhampton halal butcher Manny Malik’s session with just a smartphone, a lighting kit and a fridge full of fresh meat.

“Last week we did a TikTok livestream for three hours and sold £8,000 worth of meat,” he says.

It would normally take him three to four days to sell this amount at his family shop, Malik Kasap.

They are now opening a second store in Stoke. He says TikTok has helped him expand.

But there are fees.

TikTok Shop UK charges up to 9p from every £1 sold on the platform as standard commission.

By way of comparison, eBay’s marketplace sellers typically pay between 6.9p and 14.9p, depending on the category. Businesses selling via eBay Live, the exclusive live selling format, pay a total fee of up to 8.42p including checkout.

“Too many,” Manny says.

“There are not huge margins in the meat game for us. But it has opened up a new platform. Before TikTok, we did not have these sales. We are not losing money, we have enough profitability there,” he adds.

Buket Sevic is standing on the left of the frame, wearing an orange vest, with long dark straight hair and black sunglasses on her head. To the right of the shot behind her is a selection of jewels
Buket Sevic, founder of Adorina [BBC]

34-year-old Buket Sevik founded the jewelry brand Adorina in February after leaving her 9-5 job as a business manager. Since he started selling live on the TikTok UK store in May, his new business has grown from 50 orders a month to 500 orders a week.

He gave up working at the dining table and started broadcasting live from a small unit where orders were packaged.

“This is crazy,” he laughs.

The demand is so high that he’s trying to hire someone to help.

But according to Buket, the best part of live broadcasting is flexibility.

“I can go live whenever I want… which means it’s absolutely perfect for me as a mom. I can put my daughter to sleep and I can go live and make some sales.”

Savvy’s latest survey of shoppers found that 66% of millennials say seeing products sell out or go viral makes them more likely to buy.

This worries free debt advice service Money Wellness, which warns live shopping events are a “recipe for overspending”, says external relations manager Rebecca Lamb.

“When you make a bargain without burning out, your brain gets a hit of dopamine—the same thrill you get from gambling,” he says.

“And since many offer one-touch payments, there’s no card, no cart, and no total. Most of the time, you’ve spent money before your brain can catch up,” he says.

How to avoid overspending in live shopping?

monitoring

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