Livestream shopping has long since shed the dusty image of sales shows. The hype surrounding live events is booming on modern platforms such as TikTok and Instagram. But how much does livestream shopping actually cost for shop operators? We get to the bottom of this question and look at the most important cost factors: equipment, platform, additional staff and preparation.
The equipment is probably the most important aspect of live stream shopping. Because I can only stream live if I have a high-quality camera with a microphone. Most providers rely on modern smartphones from Apple or other manufacturers. These now have very good cameras with a high resolution. It also makes sense to use an external microphone. This allows viewers to understand the host, even if there is rustling, for example. Good microphones are available for as little as 50 euros, while smartphones start at 800 euros. A tripod should also be used to round off the equipment. These usually cost around 10 euros. All in all, the costs for smartphone, microphone and tripod start at 900 euros.
The big drawback: you can only stream on one platform with a smartphone. Whether it’s TikTok or an app, multiple providers are not possible. Of course, this also means a smaller target group. With Cadothy’s Amaze, you can regularly go live on all platforms. The livestream mixer is an all-in-one solution, completely designed for selfie mode. The built-in tablet, microphone, camera and speakers are designed for the portrait format, i.e. 9:16. The price for the Amaze is 2,500 euros. If you compare the cost of a high-quality smartphone, such as the latest iPhone, these are not far apart.
When it comes to equipment, it all depends on your own requirements. Low-cost solutions are available from as little as 900 euros. If you place a higher value on quality and extras such as a teleprompter, you will have to invest at least 2,000 euros.
The second point is the products on offer. Because in order to sell goods, I first have to have them in stock. With a live shopping stream, it is difficult for shop operators to estimate how much will actually be sold live.
The cost of a livestream shopping event also depends on the broadcasting platform. Do I choose a free version like Instagram or TikTok or do I go for an app solution like Onbaz or Bambuser? Unfortunately, there is only a limited choice in Germany so far, TikTok Shop is not yet available. This means that shop operators have to rely on app solutions. The costs at Bambuser, for example, start at $1,100. The advantage is that viewers do not have to leave the livestream to buy a product.
Nevertheless, there are many retailers in Germany who still use TikTok for live shopping. This works as follows: The retailers present their products in the live stream. If the viewer is interested in buying the product, they write this in the comments. A chat moderator then contacts the viewer via private message and clarifies all the details such as delivery address, price and payment. Of course, this method is not as user-friendly as a shopping app. But the retailer does not have to pay any fees.
Tik Tok Shop is already active in England and America. Here, retailers have to pay 5 per cent commission to the social media app. Amazon, for example, usually charges 8 to 15 per cent.
Not really measurable with a monetary amount, but nevertheless a decisive factor: the preparation time for livestream shopping. Because every live stream requires a certain amount of lead time. Before the first stream, the right hardware is needed, which then has to be set up. After that, a suitable selection of products is needed. An announcement before the stream is also advisable so that as many people as possible can take part in the live shopping event. If the stream is broadcast once a month, for example, the routines become more established each time and the preparation time tends to decrease.
Certain costs are therefore incurred for each live stream shopping event. In most cases, the acquisition costs of the equipment are the highest. Costs for the products and preparation time are also incurred. However, livestream shopping allows you to reach a large target group in a short space of time. You can also stream live on a Sunday, for example. Then you can generate sales on a day when your shop is closed. For more information and a free consultation, please call us on 089 41 41 453 50 or write to us at hello@livestream-shop.com.
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