12-02-2025
‘Live Commerce': A profitable way to earn extra income online?
Dubai: Are you looking for ways to make extra money from home? One growing trend to explore is live commerce, where live video streaming merges with online shopping. But how profitable is it? UAE experts weigh in on the risks, rewards, and opportunities in this booming sector.
The global live commerce platforms market size was estimated at $918.9 million in 2023 and is expected to reach $1.10 billion in 2024. The market, which began in China, is now a $512 billion (Dh1.9 trillion) industry.
Live commerce is a shopping experience where viewers watch live streams of influencers or matter experts showcasing and discussing products. Live shopping combines aspects of traditional teleshopping with real-time video. In these live events, influencers or experts promote products, answer questions, and engage with viewers.
Unlike teleshopping, viewers can purchase products directly during the live event via a smartphone, with no need to pick up the phone to order. Live events typically last 45-60 minutes and take place through online store portals or social media platforms.
An influencer or expert introduces products, and viewers can add items to their shopping cart and buy them during the event. This format offers immediate purchasing, as well as two-way interaction via live chat, enhancing the overall shopping experience.
Live shopping works best for fashion, beauty, and food products. However, its profitability depends on factors like audience engagement and timing. Dr. Khalid Essaye, a retail expert in Abu Dhabi, notes that monetizing live streams requires significant time and effort to maintain audience interest. 'While you can make money through affiliate programs or paid access to streams, the real money comes from direct sales during live events,' Essaye says.
Improves upon Affiliate Marketing?
Live commerce improves affiliate marketing by eliminating the need for consumers to leave the stream. Viewers can purchase displayed products immediately, making the process faster and more efficient. 'Purchase rates during live streams can be up to ten times higher than in traditional e-commerce,' Essaye adds.
However, hosting live shopping events on social media comes with risks. Essaye points out that sellers have limited access to customer data when using social platforms, which can make it difficult to track event success and optimize sales strategies. Direct sales through personal websites provide better data insights, which are useful for refining marketing efforts.
How Profitable is Live Shopping?
Starting a live commerce venture can be affordable, with inventory costs ranging from Dh400 to Dh800 for newcomers. 'If you make $10,000 (Dh36,732) in your first year, you're doing well,' says Essaye. However, he cautions that starting small and avoiding high overhead costs is key. Many successful live sellers started by reselling products from flea markets or second-hand stores.
Essaye's Tips for Getting Started
Evaluate shipping services: Offer low-cost or free shipping to attract customers.
Check your tech: Invest in better video and lighting for quality streams.
Try flea market sales: Gain exposure and feedback in person.
Explore online vendor shows: Participate in virtual events to expand your reach.
Live commerce presents an exciting and profitable opportunity, but success requires time, strategy, and audience engagement. With the right approach, you can tap into this growing trend and turn it into a successful online business.
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