Table of Contents

Table of Contents

Live Shopping App Development – Cost and Features

Live Shopping App Development

These days, everyone loves discovering new and exciting products, but traditional online shopping can feel a bit dull and impersonal. That’s where live shopping apps come in! They offer a fun and engaging way to shop by combining entertainment with e-commerce. Picture this: you can join live streams hosted by your favorite influencers or brands, where you can learn all about the latest products, ask questions, and even make purchases right then and there. This interactive experience not only makes shopping more enjoyable but also creates a sense of community among viewers. It’s shopping like you’ve never experienced before!

In 2023, livestreaming commerce sales in the United States hit an impressive estimated $50 billion! With more people diving into live shopping, now is the perfect time for businesses to explore this vibrant market. That’s why we’re seeing a surge of innovative Live Shopping Apps emerging across the U.S. market. If you’re thinking about creating your own live shopping app, we’re here to help! From designing a user-friendly interface to adding unique features, we’ll guide you through everything you need to know to make the most of this exciting opportunity. Let’s explore the possibilities together!

Key Market Takeaways for Live Shopping Apps

According to SNSinsider, the live commerce platform market was valued at USD 0.98 billion in 2023 and is projected to exceed USD 5.40 billion by 2032, with a compound annual growth rate of 20.9% from 2024 to 2032. What makes live shopping so appealing is its interactive nature—consumers can engage directly with brands and hosts in real time! This not only makes shopping more enjoyable but also taps into that fear of missing out or FOMO, leading to conversion rates that can be up to ten times higher than traditional online shopping. 

Key Market Takeaways for Live Shopping Apps

Source: SNSinsider

As shoppers increasingly crave personalized and engaging experiences, live shopping apps have become a fantastic solution. 

Many well-known brands are jumping on the live shopping bandwagon to connect with their customers. For example, Nordstrom has launched a dedicated live shopping channel featuring events focused on seasonal trends and special occasions, allowing viewers to ask questions and buy featured items on the spot. Walmart teamed up with TikTok for its “Holiday Shop-Along Spectacular,” showcasing holiday products in a fun and engaging way. 

These initiatives show just how brands are using live shopping to create immersive experiences that drive sales and bring customers closer!

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Are Live Shopping Apps Profitable?

Live shopping apps can be a goldmine for entrepreneurs and businesses, tapping into the exciting blend of e-commerce and real-time engagement. By offering an interactive shopping experience, these platforms let users connect with hosts, see products in action, and ask questions on the spot. This creates a sense of urgency and excitement, often leading to spontaneous buying decisions. 

For example, ShopShops reported over $1 million in sales during its live events in 2022, highlighting the revenue potential of this model. Plus, TikTok Live Shop has seen brands achieve impressive conversion rates of up to 30%, showing just how engaged consumers are during these live events.

Businesses can maximize their earnings through various revenue streams, such as transaction fees, advertising partnerships, and premium features for sellers. 

Live shopping apps also have the advantage of data analytics to enhance the user experience and boost sales. By tracking viewer behavior, preferences, and engagement metrics, entrepreneurs can tailor their content and marketing strategies to better meet consumer needs. Collaborating with influencers is another great way to increase visibility; TikTok Live Shop has successfully partnered with many influencers to generate buzz around products, leading to higher engagement and conversion rates.

Customer Lifetime Value

CLV is essential for assessing the profitability of live shopping apps. It indicates the total revenue expected from a customer throughout their relationship with the brand. Key factors include:

  • Engagement: Live shopping events can significantly boost customer engagement, leading to enhanced loyalty and repeat purchases. For instance, brands like American Girl have achieved a 25% engagement rate during their livestreams, which translates to higher retention and CLV.
  • Average Order Value: Live shopping often encourages impulse buying. For example, during a live event by Quivr, sales increased by 150% in the following 24 hours due to heightened viewer engagement.
  • Repeat Purchase Rate: Successful engagement during live events often results in higher repeat purchase rates, further elevating CLV.

Revenue Potential

The revenue potential for live shopping apps is substantial, driven by various monetization strategies:

  • Commission Model: Most platforms charge a commission on sales, typically between 2% to 5%. For example, if a seller generates $100,000 in sales during a live event, the platform could earn between $2,000 and $5,000.
  • Subscription Fees: Some platforms offer subscription models for premium features or early access to events, providing a steady revenue stream.
  • Advertising and Sponsored Listings: As platforms grow, they can monetize through advertising and charging brands for prominent listings.
App NameEstimated Annual RevenueFundingGrowth Rate
Giosg$14.6MN/A20% (Year-over-Year)
Bambuser$5M – $10M$18M30% (Year-over-Year)
Klarna$1.5B$3.7B40% (Year-over-Year)

Did you know? Amazon is keeping live shopping fresh and exciting with the launch of its “Amazon Live” FAST (free ad-supported TV) channel on Prime Video and Freevee! Previously available only on desktop and mobile, this new channel offers U.S. customers a chance to engage with interactive, shoppable content 24/7. Users can catch popular creators and celebrities, like Lala Kent and Paige DeSorbo, showcasing products and launching their own shows. 

It’s clear that more and more businesses are getting excited about live shopping apps! 

Key Features of Live Shopping Apps

Live shopping apps have revolutionized the way businesses engage with customers and drive sales. By combining the excitement of live streaming with the convenience of online shopping, these apps offer a unique and immersive experience.

1. Real-time Interaction

One of the key features of live shopping apps is real-time interaction. Companies can connect directly with their audience through live video streams, answering questions, addressing concerns, and demonstrating products in real time. This level of engagement fosters trust and builds stronger relationships with customers.

2. Exclusive Deals and Offers

Live shopping apps often feature exclusive deals and offers that are only available during the live stream. This creates a sense of urgency and excitement, encouraging customers to make immediate purchases. By offering limited-time discounts and promotions, businesses can drive impulse buying and boost sales.

3. Personalized Recommendations

Live shopping hosts can utilize data and analytics to offer personalized product recommendations to their viewers. By analyzing individual preferences and browsing histories, they can suggest items that align with each customer’s unique interests.

4. Gamification and Contests

Many live shopping apps incorporate gamification elements to make the shopping experience more fun and engaging. Contests, quizzes, and giveaways can attract and retain viewers. By rewarding active participation, businesses can incentivize customer loyalty and generate buzz around their brand.

5. Social Proof and Influencer Marketing

Live shopping apps often leverage the power of social proof and influencer marketing. By featuring popular influencers and showcasing customer testimonials, businesses can build trust and credibility. Influencers can introduce products to their followers, generating interest and driving sales. 

Features That Can Enhance a Live Shopping App

Live shopping apps have revolutionized the retail industry. To further enhance their offerings and attract a wider audience, businesses can incorporate innovative features that differentiate them from traditional e-commerce platforms.

1. Real-Time Product Customization

Live shopping apps can empower customers to customize products in real time. By integrating with design tools and manufacturing processes, businesses can offer personalized products that cater to individual preferences.

2. Gamified Shopping Experiences

Gamification can make the shopping experience more fun and engaging. Businesses can introduce elements like virtual rewards, challenges, and loyalty programs to incentivize customer participation and drive repeat purchases.

3. Social Commerce Integration

By integrating social media platforms, live shopping apps can leverage the power of social commerce. Customers can share products, engage with influencers, and join online communities, fostering a sense of belonging and driving brand awareness.

4. AI-Powered Personal Shoppers

AI-powered personal shoppers can provide personalized recommendations and styling advice to customers. By analyzing customer data and preferences, these virtual assistants can help customers discover new products and complete their outfits.

5. Immersive Virtual Reality Shopping

VR technology can immerse customers in virtual storefronts, enabling them to engage with products in a three-dimensional space. This interactive experience allows shoppers to examine items from various perspectives, empowering them to make well-informed purchasing choices.

6. Voice-Activated Shopping

Voice-activated shopping enables customers to make purchases using voice commands. By integrating with voice assistants, live shopping apps can provide a hands-free and convenient shopping experience.

7. Blockchain-Enabled Transparency and Trust

Blockchain technology can improve transparency and build trust within the supply chain. By monitoring the path of products from their source to the consumer, companies can provide customers with assurance regarding the quality of their purchases.

Development Steps for a Live Shopping App

Here are the development steps for a live shopping app,

1. Market Research and Planning

Before development begins, thorough market research is essential. Understanding the target audience, analyzing competitors, and identifying gaps in the market helps refine the app’s features. This research should focus on audience preferences for real-time shopping, video engagement, and interactive elements to ensure the app addresses current trends and demands.

2. Define Core Features and Functionalities

Outline the core functionalities necessary for a live shopping experience, such as live streaming, real-time messaging, product overlays, secure payment gateways, and social sharing options. Prioritize features that enhance engagement, like polls, quizzes, and interactive comments, to keep users involved during the shopping session.

3. Choose the Right Technology Stack

Selecting a suitable tech stack is crucial for smooth performance. Key components include a reliable video streaming API, robust cloud storage, database management, and user-friendly frontend and backend frameworks. Popular choices for live streaming APIs include Agora, Twilio, or AWS IVS to support real-time interactions.

4. UI/UX Design and Prototyping

Design a user-friendly layout that provides easy navigation, clear product information, and seamless purchasing options. Developing clickable prototypes and conducting usability tests with target users can ensure the design aligns with user expectations and enhances the shopping experience.

5. Backend Development and Database Setup

The backend infrastructure must support real-time interactions and handle high volumes of concurrent users. Implementing a scalable architecture is critical, especially for managing live streams and user data. Using databases like MongoDB or PostgreSQL can facilitate efficient data management, while cloud services like AWS or Google Cloud enhance scalability.

6. Live Streaming and Real-Time Communication Integration

Integrate live streaming capabilities and real-time messaging features, allowing hosts and users to interact seamlessly. Choosing a reliable streaming protocol (such as WebRTC for low latency) and incorporating chat features ensure users can ask questions and get immediate responses, mimicking an in-store experience.

7. E-commerce and Payment Gateway Integration

The app should support browsing, cart management, and secure payment processing. Integrating popular payment gateways like Stripe, PayPal, or Square ensures smooth and secure transactions. Additionally, setting up a secure checkout process and providing multiple payment options enhance user convenience and trust.

8. Testing and Quality Assurance

Conduct thorough testing to identify and resolve any issues. Focus on functionality, usability, and load testing to ensure the app performs well under high traffic. Testing for streaming quality, real-time interactions, and payment processing accuracy is essential to deliver a polished and reliable app.

Cost of Developing a Live Shopping App

ComponentDescriptionCost Range (USD)
1. Research and Planning– Market research, feature planning for core functionalities, and basic UI/UX design for the app’s layout.$3,000 – $10,000
2. Backend DevelopmentServer Setup: Basic server infrastructure to support user data and product catalog.- API Development: Essential APIs for frontend-backend communication.- Payment Gateway: Standard integration for one payment provider.- Real-Time Streaming: Simplified streaming integration for live sessions.$10,000 – $30,000
3. Frontend DevelopmentUI Design: Creating intuitive design elements for smooth shopping flow.- Live Streaming Integration: Adding essential live video and chat functionality.- Shopping Cart and Checkout: Basic shopping cart and streamlined checkout integration.$10,000 – $30,000 per platform
4. App FeaturesProduct Catalog: Basic catalog with essential product details.- User Profiles: Allowing profiles and order tracking.- Push Notifications: Notifications for promotions and updates.- Social Sharing: Limited social media sharing.- Reviews and Ratings: Collect user feedback.$3,000 – $10,000 per feature
5. Testing and Quality Assurance– Functional and performance testing with basic security assessment and UAT for initial feedback.$3,000 – $7,000
6. Deployment and Maintenance– App store submissions, initial server setup, and light post-launch maintenance for bug fixes and updates.$1,500 – $5,000 per year

Total Cost Estimate: $10,000 – $100,000.

Factors That Can Affect the Cost of Developing a Live Shopping App like Tilt

Several variables can significantly impact the overall development cost of a live shopping app. While many of these factors are common to software development projects, some are unique to the specific requirements of live shopping apps.

  • Real-time Streaming Technology: Implementing a robust real-time streaming solution, including video encoding, delivery, and low-latency streaming, can be complex and costly.
  • Integration with E-commerce Platforms: Integrating the live shopping app with existing e-commerce platforms, such as Shopify or Magento, requires careful planning and development.
  • Payment Gateway Integration: Securely integrating payment gateways to process transactions in real-time adds complexity to the development process.
  • Live Chat and Customer Support: Implementing a reliable live chat system to interact with customers during live streams requires careful planning and development.

Most Successful Business Models for Live Shopping Apps

Let’s discuss some of the most popular business models for live shopping apps,

1. Influencer-Driven Commerce

Influencer-driven commerce capitalizes on the popularity of social media influencers to promote products through live streams. This model allows influencers to host sessions where they showcase products and engage with their followers, driving immediate sales.

For instance, NTWRK is a live shopping app that focuses on niche brands and exclusive product drops. Influencers and artists can apply to join the platform, ensuring that only vetted sellers promote their products. 

In 2023, NTWRK reported that its live streams could generate conversion rates as high as 15%, significantly higher than traditional e-commerce methods.

2. Social Media Integration

Integrating live shopping features into existing social media platforms has proven to be a highly effective model. This approach allows users to shop while engaging with content they are already consuming.

Instagram Live Shopping exemplifies this model by enabling brands to sell directly through their live broadcasts. 

During a recent campaign, brands using Instagram Live saw an increase in engagement rates by 30%, with some reporting that viewers who interacted during live sessions were 70% more likely to make a purchase compared to those who did not engage. 

3. Direct-to-Consumer Live Events

The DTC model empowers brands to host their own live shopping events, allowing them to control the narrative around their products and engage customers directly without intermediaries.

Bambuser is a platform that supports this model by allowing brands to run their own live shopping events or embed shoppable videos on their websites. 

Brands like Bloomingdale’s and HUGO BOSS have successfully utilized Bambuser’s technology, leading to conversion rates that are reportedly up to 20% higher during live events compared to standard online sales. 

4. Interactive Shopping Experiences

The interactive shopping experience model emphasizes real-time engagement through features like live chat, polls, and Q&A sessions during live streams. This model fosters community interaction and enhances the shopping experience.

Smartzer exemplifies this approach by allowing users to interact with clickable pop-ups during live streams. Brands using Smartzer have reported an increase in average order value by 25% during interactive sessions compared to traditional e-commerce methods. 

The platform integrates seamlessly with major e-commerce systems like Shopify and WooCommerce, making it accessible for many retailers.

Top 5 Live Shopping Apps in the USA

Here are the top live shopping apps in the USA,

1. Popshop Live

Popshop Live

Popshop Live is a vibrant platform that combines shopping with social interaction. It allows users to swipe through shoppable videos and join live streams hosted by their favorite creators. The app has garnered over 100,000 downloads and maintains a solid 4.7-star rating based on approximately 2,900 reviews on the Apple Store. Notably, it supports over 100,000 products from various categories, including fashion and collectibles. Creators can set up their storefronts in under five minutes, making it accessible for many sellers. 

2. ShopShops

ShopShops

ShopShops focuses on connecting shoppers with exclusive designer items through live streaming. This app has been recognized as the Best Livestream Shopping App of the Year by Retail Boss in 2022. It boasts a community of global sellers from cities like NYC, Paris, and Tokyo, providing access to luxury brands such as Louis Vuitton and Gucci. ShopShops offers new users a $75 coupon for their first purchase and up to $500 in shopping rewards for completing various actions within the app. 

3. LIVEBUY

LIVEBUY

LIVEBUY provides a seamless experience for shoppers and sellers alike, allowing users to manage their live shopping events directly from their mobile devices. The app prioritizes user-friendliness, enabling instant product selection and live streaming. With its intuitive design, it has garnered positive reviews for its functionality and simplicity, holding a 4-star rating on the Apple Store.

4. Drip Shop Live

 Drip Shop Live

Drip Shop Live caters specifically to trading card enthusiasts, providing a platform for live auctions and community engagement. It features daily streams where users can participate in card pack openings and auctions. The app is particularly appealing due to its free shipping policy on all orders. Drip Shop Live has achieved a 4.8-star rating on the Apple Store, reflecting high user satisfaction within its niche community.

5. Hoods

Hoods

Hoods Live Shopping offers an engaging platform where users can shop from local and international vendors through interactive livestreams. This app allows users to see products in real-time and interact with hosts for detailed descriptions before making purchases. Hoods aims to provide a personalized shopping experience by featuring celebrity hosts who assist viewers in selecting products that suit them best.

Conclusion

What I think about live shopping apps is that they’ve truly become a game-changer for businesses looking to engage with customers. The unique and interactive experience these apps offer is unlike anything else. I can see how they can significantly increase brand awareness and drive sales, all while fostering stronger relationships with customers.

For consumers like me, live shopping apps make discovering new products not just convenient but also entertaining. I appreciate being able to interact with brands directly, ask questions, and make informed purchasing decisions in real time. It feels more personal and engaging compared to traditional shopping methods.

Looking to Develop a Live Shopping App?

Unlock the potential of live streaming with Idea Usher’s innovative live shopping app development! With over 500,000 hours of coding experience, our expert team is here to create a fun and engaging shopping platform just for you. We’ll handle everything from smooth live streaming integration to extensive product catalogs and secure payment options, ensuring your app provides an amazing shopping experience. Let’s team up to transform your business and boost sales through the excitement of interactive commerce!

Hire ex-FANG developers, with combined 50000+ coding hours experience

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FAQs

Q1: How to develop a live shopping app?

A1: To develop a live shopping app, start by conducting thorough market research to understand user preferences and competitors. Next, define the core features such as live streaming, chat functionalities, product listings, and secure payment gateways. Choose a suitable tech stack, which may include frameworks like React Native for cross-platform compatibility. Design an intuitive user interface that enhances user engagement and implements robust backend systems to handle real-time data processing. Finally, extensive testing and user feedback must be conducted before launching the app on relevant platforms.

Q2: How do live shopping apps make money?

A2: Live shopping apps typically generate revenue through various monetization strategies. They can charge brands and sellers for hosting live events, taking a commission on sales made during these sessions. Subscription models for premium features or enhanced visibility can also provide income. Additionally, in-app advertising and partnerships with influencers can boost revenue. Some apps may offer additional services like analytics and marketing tools to brands for a fee, creating multiple income streams.

Q3: What are the features of a live shopping app?

A3: Key features of a live shopping app include live video streaming, real-time chat capabilities, and an interactive user interface that allows viewers to ask questions and engage with hosts. A product showcase section with detailed descriptions, prices, and a “buy now” button is essential. User accounts for personalized experiences, wish lists, and order tracking can enhance user engagement. Integrating social sharing options, loyalty programs, and analytics tools for sellers are also important to enrich the shopping experience and optimize performance.

Q4: What is the cost of developing a live shopping app?

A4: The cost of developing a live shopping app can vary based on desired features, and the geographical location of the development team. Basic apps typically require a lower investment, while more sophisticated versions with advanced functionalities will demand a higher budget. Ongoing maintenance, updates, and marketing are additional considerations. It’s crucial to outline clear requirements and collaborate with a skilled development team to obtain an accurate estimate tailored to your specific needs.

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Debangshu Chanda

I'm a seasoned Technical Content Writer with over 5 years of experience transforming complex technical information into clear, engaging content. I'm skilled at creating content that serves as a bridge between experts and end-users, ensuring it is informative and easy to understand. My expertise covers various subjects, allowing me to adapt my writing style to different audiences. With a strong research foundation and keen attention to detail, I consistently deliver high-quality content that surpasses project goals.
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