The data: TikTok livestreams are helping to drive sales for retailers both online and in physical stores, according to a TikTok Shop-commissioned report.

• 3 in 5 small- and medium-sized businesses (SMBs) in the UK say that one TikTok Live shopping session generates more revenues than other channels in a typical week.
• 1 in 3 UK TikTok Live viewers has gone on to purchase a beauty product in-store after seeing it on a livestream.

Behind the numbers: While TikTok Shop obviously has a vested interest in promoting the efficacy of its live content, the report shows the benefits of live shopping go far beyond the ability to convert customers in the moment.

The format builds awareness. Some 91% of UK SMBs say live shopping on TikTok has enabled them to make contact with customers they wouldn’t otherwise have been able to reach.

It can help raise customer lifetime value. Three-quarters of UK SMBs say that customers who shop through TikTok Live are more likely to make repeat purchases, showing that investment in livestreams can also act as an investment in community-building and customer loyalty.

Livestream content can boost conversions while reducing returns. The ability to see how a product works or looks in real-time—as well as ask questions—makes livestreams an important research tool for customers looking to see whether an item is worth the money. Thirty percent of UK shoppers who have watched a TikTok Live say that a creator has helped them figure out a clothing item’s size, fit, or scale, while half of those who made an electronics purchase during or directly after a Live session credited their conversion to being able to see how the product worked in real life. That in turn is leading to lowered return rates: Fashion items bought during TikTok Lives are returned at less than half the rate of those purchased from static TikTok Shop product listings.

Implications for retail: Livestream shopping offers brands the opportunity to add a human touch to their interactions with consumers, which can help overcome the relatively impersonal experience of shopping through AI platforms and other algorithm-driven channels. Even if they don’t directly convince a shopper to make a purchase while watching, livestreams give brands the ability to educate and connect with shoppers in a more authentic, engaging way.

Brands should consider how to integrate livestreams into their ecommerce strategies while recognizing that the format is not easy to master. Finding the right host is essential—having a big-name influencer can attract viewers, but that person may lack the requisite brand and product knowledge to make the livestream truly useful to shoppers.

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