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We all love the convenience of online shopping, but let’s face it—sometimes it can be tricky to make the right choice, especially for things like clothing, makeup, or electronics. Traditional e-commerce often relies on static images and descriptions that might not give you the full picture. That’s where live shopping apps like Tilt come in to save the day! It combines the fun and social vibe of platforms like TikTok with the practicality of shopping, creating an engaging and interactive experience. You can chat with brands and other shoppers in real time, ask questions, and even make purchases right in the app. This lively format not only builds a sense of community but also gives you a more authentic shopping experience.
The global live commerce market is booming, with an estimated size of USD 918.9 million in 2023 and a projected growth rate of 21.2% from 2024 to 2030. With more people embracing live shopping, it’s the perfect time for businesses to jump into this exciting market! That’s why we’re seeing a wave of innovative live shopping apps popping up all across the U.S. If you’re considering creating your own live shopping app, we’re here to support you every step of the way! From designing a user-friendly interface to adding those special features that make your app stand out, we’ll help you navigate this thrilling opportunity. Let’s explore the possibilities together!
Overview of the Tilt App
Tilt is a live shopping app that merges e-commerce with social interaction, aiming to create a more engaging and dynamic shopping experience. Founded in 2021 by former Revolut employees Neil Shah and Abhi Thanendran, the app allows users to participate in real-time streams where they can interact with sellers, similar to an in-store shopping experience.
Key Features of Tilt
- Real-Time Interaction: Users can engage directly with sellers through live streams, enabling synchronous communication and creating a sense of urgency with time-sensitive deals.
- Social Commerce: The app incorporates elements from social media platforms like TikTok, allowing sellers to act as content creators and build communities around their brands.
- Diverse Shopping Formats: Tilt supports various formats such as auctions, giveaways, and live drops, enhancing user engagement and offering unique shopping experiences.
Key Market Takeaways for Live Shopping Apps
Source: GrandViewResearch
This impressive growth is driven by factors like the rising popularity of e-commerce, the explosion of social media, and the impact of digital marketing through influencers. The immersive nature of live shopping allows consumers to interact with sellers in real-time, enhancing the overall shopping experience and boosting engagement.
Partnerships play a key role in this growth, enabling brands to team up and leverage each other’s strengths to better connect with customers and expand their reach. For example, Bambuser AB has teamed up with TikTok Shop to make livestream shopping easier for sellers in the U.S. market. Another exciting collaboration is with Livescale, which has partnered with popular influencers like Chiara Ferragni and industry leaders such as Lancôme to host engaging live shopping events. These partnerships have been incredibly successful, with one event attracting over 45,000 live viewers and generating a whopping 200,000 comments and likes!
These trends show just how vibrant and interactive the live shopping space has become, creating fantastic opportunities for brands and consumers alike!
developers, with combined 50000+ coding hours experience
Business Model of the Tilt App
Tilt’s business model is designed to capitalize on the growing trend of live shopping and social commerce, particularly targeting the Gen Z demographic. The app combines elements of e-commerce, social media, and community engagement to create a unique shopping experience that differentiates it from traditional online retail platforms.
Revenue Generation
Tilt generates revenue primarily through a commission-based model. It takes a percentage cut from each sale made through the app. This aligns its interests with those of sellers, as both parties benefit from successful transactions. The specific commission rate has not been disclosed, but it typically ranges from 5% to 20% in similar platforms.
Diverse Shopping Formats
The app offers various interactive shopping formats, including:
- Live Streams: Sellers can showcase their products in real-time, allowing buyers to engage and ask questions.
- Auctions: Users can bid on items, creating a sense of urgency and excitement.
- Boosts: Sellers can promote their listings for increased visibility during live events.
These features not only enhance user engagement but also encourage faster sales, benefiting both buyers looking for deals and sellers aiming to clear inventory quickly.
Targeting Niche Brands
The platform primarily collaborates with smaller, niche brands rather than large retailers. This strategy allows Tilt to cater to specific consumer interests and aesthetics, which are particularly appealing to Gen Z shoppers who value unique and sustainable products. As of now, Tilt has partnered with around 100 brands, focusing on those with strong social media presences.
Funding and Investment
- Series A Funding: Tilt raised €16.1 million (approximately $18 million) in Series A funding, led by Balderton Capital, with participation from TQ Ventures, Earlybird, and Seedcamp.
- Previous Investment: Prior to this, Tilt secured a $3 million pre-seed round in 2022
This funding will be used to scale operations, enhance platform features, and deepen user engagement. The company has already attracted over half a million users within its first year of operation.
Financial Peformance
- 2023 Revenue: Tilt reported a total revenue of $166 million for the year, a decline from $174.2 million in 2022. This performance fell short of the estimated $170 million forecast by analysts at Zuanic & Associates.
- Q4 2023 Revenue: In the fourth quarter of 2023, Tilt’s revenue was $37.5 million, down from $44.3 million in the same quarter of the previous year, missing the analyst estimate of $44.1 million.
The company is focusing on improving revenue growth for 2024 and has implemented cost-saving measures that have resulted in about $8 million in annualized savings for 2023.
Are Live Shopping Apps like Tilt Profitable?
Live shopping apps like Tilt can be incredibly profitable for entrepreneurs and businesses, thanks to their unique mix of e-commerce and real-time engagement. By combining live streaming with shopping, these platforms create an interactive experience that really captivates consumers, often leading to impulsive buying decisions. The blend of entertainment and instant purchasing can significantly boost sales, as viewers can interact with hosts, ask questions, and see products in action. This immediacy often results in higher conversion rates compared to traditional online shopping, where customers might leave the site before making a purchase.
Take Whatnot, for example—they reported generating $38.9 million in revenue in 2023, showcasing the financial potential of live shopping platforms. Similarly, Amazon Live has tapped into its vast customer base to drive engagement and boost sales through live events, contributing to Amazon’s overall e-commerce success.
Revenue streams for these platforms can be quite diverse. Entrepreneurs can earn not just from direct sales but also through partnerships with brands for sponsored content, affiliate marketing, and advertising. Hosting exclusive events or sales can attract even more users and create a sense of urgency to buy. Plus, introducing subscription models for premium content or features can provide a steady income.
A lot of industry leaders are also acknowledging the potential of live shopping apps. For instance, Marion, Founder of Oden, shares:
“Live Shopping allows me to fully embody my brand on my website. The live shopping page has quickly become one of the most visited pages on the site.”
Customer Lifetime Value
For Tilt, which focuses on fashion and community engagement, the CLV can be influenced by several factors:
- Engagement Rate: Tilt has successfully attracted over 500,000 users within its first year, indicating strong initial engagement. This user base is crucial for calculating CLV as it reflects potential repeat purchases.
- Purchase Frequency: If users engage frequently during live streams and make multiple purchases, the CLV increases significantly. Reports suggest that conversion rates during live events can reach 30%, which is substantially higher than traditional e-commerce.
- Average Order Value: The average transaction value during a live shopping event can also impact CLV. If Tilt can maintain or increase AOV through effective promotions and exclusive live deals, this will enhance overall profitability.
Revenue Potential
Tilt recently raised $18 million in Series A funding to expand its operations and enhance user engagement. The app’s business model includes various revenue streams such as transaction fees from sellers, advertising during live streams, and possibly subscription models for enhanced features.
To get a sense of Tilt’s potential revenue, let’s take this scenario: if Tilt hosts an average of 10 live events each month, attracting about 1,000 viewers per event, and maintains a 30% conversion rate, we could see around 3,000 purchases monthly. With an average order value of $50, that could lead to about $150,000 in monthly revenue! Over the course of a year, that adds up to an impressive $1.8 million.
Did you know?
Recently, a digital sports and apparel platform Fanatics has also jumped into the scene with their new app, Fanatics Live! This fun platform allows fans to purchase sports collectibles and merchandise while enjoying exclusive content.
Currently available in North America, the app offers tailored content based on user interests, and sellers can run their broadcasts through a special platform called “LiveOS.” It’s a fantastic way for fans to engage with their favorite sports while discovering new items!
Other Popular Live Shopping Apps
ShopShops
- Estimated Annual Revenue: $48.3 million, indicating strong market traction in the live shopping space.
- Total Funding: $49.21 million, reflecting investor confidence and support for its growth strategies.
- Growth Rate: ShopShops has experienced a 16% increase in employee count over the past year, suggesting ongoing expansion and increasing operational capacity.
Whatnot
- Total Funding: Whatnot has raised over $100 million in funding through multiple rounds, highlighting strong investor interest in its niche market.
- User Base Growth: The platform has grown its user base significantly, with reports suggesting it has attracted over 1 million active users engaging in live auctions and sales.
Development Steps for a Live Shopping App like Tilt
Here are the steps for developing a live shopping app like Tilt,
1. Market Research and User Analysis
Conduct in-depth market research. Identify what users seek in live shopping experiences, such as real-time interaction, diverse shopping formats, and community engagement. Study competitors to pinpoint features that resonate most with the target audience.
2. Define Core Features and Functionalities
Determine essential features like real-time streaming, live chat, push notifications, user profiles, and interactive shopping formats. Core functionalities should also include secure payment gateways, social media integration, and analytics to track user engagement.
3. Choose a Technology Stack
Select a reliable tech stack to support real-time streaming and high-quality videos, such as WebRTC for video and audio streaming, Node.js or Python for the backend, and Swift or Kotlin for mobile app development. Use cloud-based platforms like AWS or Google Cloud for scalability, ensuring stable performance during high traffic.
4. Develop a Real-Time Streaming Module
Build a robust streaming module that supports high-definition video, audio, and seamless connectivity. Optimize for minimal lag to maintain real-time interaction and implement streaming protocols (e.g., RTMP) for smooth broadcasts. Consider adaptive bitrate streaming to deliver optimal video quality based on user internet speed.
5. Integrate Interactive Shopping Features
Add features that allow users to interact directly with sellers, such as live chat, emojis, and clickable product links. Include functionality for quick purchases within the stream and add options for auctions, giveaways, or time-sensitive deals to boost engagement and increase sales.
6. Implement Secure Payment Processing
Ensure secure, seamless transactions by integrating reputable payment gateways (such as Stripe, PayPal, or Square) that support multiple currencies and payment options. Include encryption and other security protocols to safeguard user data and ensure compliance with PCI-DSS standards.
7. Enable Social Media and Community Integration
Enhance the social aspect by allowing app users to share live streams on platforms like Instagram, TikTok, and Facebook. Implement social features such as user tagging, commenting, and community-building options to encourage brand interaction and increase visibility.
8. Test for User Experience and Scalability
Perform rigorous testing to ensure a smooth user experience. Conduct load testing to verify app performance under high traffic, as well as usability testing to ensure intuitive navigation and seamless engagement with interactive features. Prioritize low latency for real-time features to avoid delays during live sessions.
Cost of Developing a Live Shopping App like Tilt
| Component | Description | Cost Range (USD) |
| 1. Research and Planning | – Market Research: Identify the target audience and analyze competitors.- User Experience (UX) Research: Understand user needs and preferences.- Feature Planning: Define core app functionalities and user journey. | $2,000 – $8,000 |
| 2. Design and UI/UX | – Wireframing and Mockups: Visualize the app interface.- Visual Design: Define app branding, colors, fonts, and icons.- User Interface (UI): Design a user-friendly interface for seamless navigation. | $3,000 – $10,000 |
| 3. Frontend Development | – User Interface Development: Code the visual components.- Feature Integration: Add core features like live streaming and shopping cart.- Backend Communication: Ensure smooth data transfer between frontend and backend. | $8,000 – $20,000 |
| 4. Backend Development | – Server Infrastructure: Set up backend infrastructure.- Data Management: Manage user authentication, data storage, and API endpoints.- Payment Gateway Integration: Integrate with secure payment solutions. | $10,000 – $25,000 |
| 5. Essential App Features | – Live Streaming: Real-time video streaming with basic chat features.- Product Catalog: Display searchable product listings.- Shopping Cart and Checkout: Smooth checkout with cart management.- Push Notifications: Send alerts for promotions. | $2,000 – $7,000 per feature |
| 6. Testing and Quality Assurance | – Functional Testing: Verify core feature functionality.- Performance Testing: Test app stability under varied conditions.- User Acceptance Testing (UAT): Conduct testing with users to refine app and resolve bugs. | $3,000 – $8,000 |
| 7. Deployment and Maintenance | – App Store Submission: Submit app to Apple and Google Play.- Post-Launch Support: Routine maintenance and bug fixes.- Server Maintenance: Ongoing server monitoring for optimal performance. | $2,000 – $7,000 per year |
Total Cost Range: $10,000 – $100,000.
Factors That Can Affect the Cost of Developing a Live Shopping App
Several variable factors can significantly affect the overall development cost of a live shopping app like Tilt. These factors can be broadly categorized into two types: general development factors and factors unique to live shopping apps.
- Real-time Video Streaming: Implementing robust real-time video streaming capabilities requires significant technical expertise and infrastructure. Ensuring low latency, high video quality, and smooth user experiences can be challenging and costly.
- Interactive Commerce Features: Integrating live shopping features like real-time chat, product recommendations, and instant purchase options requires careful planning and development. These features must be seamlessly integrated into the app’s user interface and backend systems.
- Inventory Management and Logistics Integration: Efficiently managing inventory levels, tracking orders, and coordinating with logistics providers is crucial for successful live shopping operations. Integrating with existing inventory and logistics systems can be complex and time-consuming.
- Security and Fraud Prevention: Protecting user data and preventing fraudulent activities is paramount in live shopping apps. Implementing robust security measures, such as encryption, secure payment gateways, and fraud detection systems, can add to the development cost.
Conclusion
What I think about a live shopping app like Tilt is that it offers a fantastic opportunity for both consumers and businesses alike. From a consumer’s perspective, it transforms shopping into an immersive and interactive experience. I love the idea of discovering new products while engaging directly with brands in real time. It feels more personal and exciting than traditional online shopping.
For businesses, this trend is a game-changer. By developing a live shopping app, they can not only boost their sales but also enhance their brand awareness. I believe it allows companies to create stronger relationships with their customers, making shopping feel more like a community experience.
Looking to Develop a Live Shopping App like Tilt?
At Idea Usher, we’re all about turning your live shopping dreams into reality! With over 500,000 hours of coding expertise, our talented team specializes in creating custom live shopping apps like Tilt. We’ll craft a solution just for you, packed with seamless live streaming, interactive chat, and real-time purchasing. By harnessing cutting-edge technologies like AI for product recommendations and augmented reality, we’ll create an engaging shopping experience that will wow your audience and boost your sales. Let’s work together to transform your online store into a vibrant, interactive platform that stands out from the crowd!
FAQs
Q1: How to make a live shopping app?
A1: Creating a live shopping app involves several key steps. First, define your target audience and the niche you want to cater to. Then, outline the features your app will include, such as live streaming capabilities, chat functions, product showcases, and secure payment options. Collaborate with a development team to choose a suitable tech stack and design an intuitive user interface. Next, integrate essential functionalities, such as real-time interactions, inventory management, and analytics tools. Finally, conduct thorough testing and launch your app, followed by ongoing marketing and user engagement strategies.
Q2: Are live shopping apps profitable?
A2: Live shopping apps can be highly profitable due to their interactive nature, which fosters a sense of urgency and engagement among consumers. They combine entertainment with e-commerce, encouraging impulse purchases through real-time interactions. Successful apps often generate revenue through commissions on sales, advertising, and partnerships with brands. As consumer preferences shift towards more dynamic and engaging shopping experiences, the potential for profitability in this sector continues to grow, especially in regions where social commerce is booming.
Q3: How long does it take to develop a live shopping app?
A3: The development timeline for a live shopping app can vary a lot based on features and the size of the development team. Generally, creating a basic version can take anywhere from three to six months, while a more advanced app with custom features and integrations may take six months to a year or longer. Factors influencing the timeline include design iterations, backend infrastructure, testing phases, and potential revisions based on user feedback. Proper planning and a clear roadmap can help streamline the process.
Q4: What technologies are used to make a live shopping app?
A4: Developing a live shopping app typically involves a combination of front-end and back-end technologies. For the front end, frameworks like React or Angular are popular for building responsive user interfaces. On the back-end, technologies like Node.js or Django are commonly used to handle server-side operations. Real-time functionalities can be implemented using WebSockets or streaming services. Additionally, databases like MongoDB or Firebase are often employed for data storage. For payment processing, integrating services like Stripe or PayPal is essential, along with cloud services for hosting and scalability.
