Advantages and disadvantages of livestreaming e-commerce

In China, The year 2020 is a year of rapid development for the live streaming industry. About 30,000 new live-streaming vendors are arriving every day, and the total number of orders for live-streaming products is growing by 20 per cent a week. It is expected that the market economy of live-streaming and carrying goods will reach 900 billion yuan in 2020.

Lipstick brother №1 Jiaqi Li’s live streaming video

In the fierce market competition, the advantages and disadvantages of live streaming are very prominent. Let’s start with the upside.

1. The presence of a large number of live-streamer provides a wide range of choices for businesses. The cost of the whole field of live streaming is multi-level stratified from the gold live-streamer to the mass live-streamer, making it easy for both large and small businesses to choose their own channel.
2. Due to the flow of live streaming agencies and the cooperation between live-streamer and product selection, if a good product is indeed of high quality and low price. It can be exposed quickly even if the brand is weak, which provides a great opportunity for many small and medium-sized businesses to provide products with great care.
3. Live-streamer huge advantage of the rapid development of live streaming industry is that it provides a large number of cheap and high-quality products for the society, which is conducive to the sustainable development of the whole society. Because the success of the carrier needs to establish its specific people, through credit and fans to establish a link. So the quality of the product, the price of the product will be particularly important. Product quality will be guaranteed through selection, while product price will benefit the people through the negotiation right of anchors to bring goods, which will eventually push a large number of high-quality and cheap products to the society, and inferior products will be gradually eliminated. Anchors can guide fans to choose the priority of shopping scenarios, establish personal IP and achieve stable income.
4. From the perspective of employment. Live-streaming also drives the creation of a large number of new jobs for live-streamer and the operation team behind live-streamers. For a new startup, the creation of a live streaming team may create jobs for at least five people. However, compared with professional live streaming teams, the attempt of individual live-streamer to bring goods is more of a flexible way of employment, which can bring them extra income while giving consideration to their main business.

However, due to the rapid expansion of the live broadcast industry, some negative effects have been produced.

1. The very low entry threshold has brought about a large number of employees, both good and bad. The low integrity level of some employees has also harmed the legitimate rights and interests of some consumers. After placing an order, some consumers find that they have received fakes, inferior products and futures. Due to the lack of complaint channels, it is difficult for consumers to effectively curb these illegal businesses and illegal live streaming. There are calls for industry standardization.
2. Some live-streamers in the industry set a high proportion of entrance fees and commissions for merchants, but fail to guarantee the sales, leading to losses of merchants. There are also some host organizations through the brush, hiring water army to forge live data and so on, has been in fact a commercial fraud. These merchants will soon find that the few orders are in obvious contrast with the popularity of the live broadcast room. Or, although the effect of the live broadcast is very good, the return product rate of consumers is very high. The live broadcast platform not only earns the commission, but also fails to bring the benefits to the merchants.

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