What Stocks Benefit from Live Social Media Shopping?

In the early days of e-commerce, few could have imagined just how quickly video-driven, real-time product demonstrations would reshape global retail. But here we are: In China alone, live streaming e-commerce revenue soared from a roughly $64 billion market in 2019 to more than $300 billion by 2021, according to data compiled by Deloitte.

This shift, driven in large part by platforms like Alibaba’s Taobao Live and ByteDance’s Douyin (the Chinese version of TikTok), has enticed a new generation of consumers who crave more immersive ways to discover and buy products. Across the globe, Western markets are racing to catch up, and forward-thinking investors are taking note. The question on their minds is which U.S.-listed stocks stand to benefit the most as live social media shopping takes root?

Livestream Commerce Set To Be $25 Billion Business

To figure out who the winners and losers will be, think first about the tectonic shift in buying that is coming whereby consumers tune into livestreams where hosts showcase products in real time versus browse ordinary web pages that are static.

Why is this so different than seeing a video on Instagram or reading an ad in a newspaper or online? Because now the buying process gets interactive where viewers can ask questions and buy on the spot. It’s a way to engage consumers in an amped up way while capitalizing on scarcity, urgency, and authenticity to skyrocket conversion rates well beyond those seen on traditional e-commerce sites.

What’s the difference between static vs interactive buying? Coresight Research forecasts that the U.S. livestream shopping market could reach $25 billion by 2023, up from just $6 billion in 2020. These numbers are still tiny relative to China’s mature market but the growth curve looks really steep. So, which platforms can scale these livestream experiences?

Before answering that question, some other tailwinds to note come from Nielsen’s data which stated that viewers watching a live product demonstration are nearly twice as likely to convert into buyers compared to traditional online shoppers. So too Statista claimed that the average watch time for a livestream shopping event can exceed 10 minutes, which is significantly higher than the average time spent on static product listings (often measured in seconds). 

Who Is Going to Win The Live Social Shopping War?

It’s not just specialized e-commerce platforms that are diving into livestream shopping. Tech and social media giants are rapidly integrating these features into their ecosystems. Meta Platforms (NASDAQ:META) is a prime example. With billions of daily active users across Facebook and Instagram, Meta is experimenting aggressively with “Live Shopping” events and shoppable video posts.

Instagram’s commerce tools, in particular, give brands the power to showcase products within influencer-led live sessions, and users can tap directly on products to learn more or make instant purchases. If Meta successfully expands its U.S. and European livestream commerce presence, its ad-driven revenue mix has the potential to tilt more toward direct commerce integrations.

To put some numbers behind these initiatives, consider Meta’s global user base of roughly 3.9 billion monthly active users across its family of apps as of Q3. Even a tiny fraction of that audience converting to live commerce shoppers would be transformative, especially if the take rate is 8% as Gary Vaynerchuk has stated on CNBC.

Similarly, YouTube’s experiments with shoppable livestreams have shown early promise. Data from Google Trends indicates that searches for “YouTube live shopping” quadrupled between 2020 and mid-2023, illustrating growing consumer awareness. Similarly, if YouTube can tap into even 1% of its user base for regular livestream shopping sessions, that could mean tens of millions of active shopper-viewers.

Amazon & Alibaba Likely Big Winners Too

Amazon (NASDAQ:AMZN) is no stranger to pushing the boundaries of online retail. The company introduced Amazon Live in 2019, and though it initially flew under the radar, recent momentum suggests it could become a meaningful part of the platform’s ecosystem.

Amazon Live functions similarly to QVC-style home shopping, where hosts display products, answer real-time questions, and offer time-limited discounts. For Amazon, which boasts over 300 million active customer accounts globally, a modest percentage of shoppers hooked on livestream events will translate into billions in incremental revenue over time.

On the other side of the globe, Alibaba (NYSE:BABA) has practically written the playbook on livestream shopping through its Taobao Live platform. Taobao Live has hosted events that attract tens of millions of concurrent viewers, and top influencers can rake in hundreds of millions of dollars in sales in a single session.

While Alibaba’s primary markets are in Asia, the firm’s best practices have guided Western players. Alibaba’s data shows that products in livestreams can see conversion rates that are up to 20 times higher than standard product listings. Although directly investing in Alibaba links your portfolio to the complexities of the Chinese market, it remains a bellwether for the entire livestream commerce phenomenon.

For Amazon, internal data suggests that live events featuring well-known influencers or celebrities can spike sales conversions by up to 15% above baseline levels. Third-party estimates from Marketplace Pulse have noted that certain niche categories—beauty, fashion, and tech gadgets—do particularly well in live event formats, seeing sales lifts of 25% or more during the livestream. Meanwhile, Alibaba’s Taobao Live reported that its top-performing influencer, Viya, once sold $1.3 billion worth of goods in a single day’s event. 

Pinterest and Etsy To Get In on the Action?

Beyond the big names, specialized platforms and smaller players could see substantial gains as they carve out niches. Companies like Pinterest (NYSE:PINS) and Etsy (NASDAQ:ETSY) are exploring ways to incorporate livestream capabilities.

Pinterest’s “Idea Pins” are evolving into shoppable videos, and the platform has tested live events to highlight emerging creators and brands. If these experiments pay off, Pinterest has the potential to grow its revenue beyond ads and affiliate links, leveraging a highly engaged user base known for product discovery.

Shopify (NYSE:SHOP), while not a social media platform per se, partners closely with social networks to provide seamless, merchant-friendly commerce integrations. In 2022, Shopify extended its reach by integrating with platforms like YouTube and TikTok, allowing merchants to host live selling events and link directly to their Shopify storefronts.

With an expanding merchant base stretching into the low single-digit millions, Shopify stands to benefit from the collective momentum of livestream selling across various social platforms. Recent earnings reports have indicated growing merchant adoption of video-based selling tools.

Here Comes Walmart 

Traditional retailers, too, see opportunities. Walmart (NYSE:WMT) has partnered with TikTok in the past for shoppable livestream events, and analysts believe more U.S. retailers will follow suit to remain competitive.

Meanwhile, media conglomerates like Qurate Retail (NASDAQ:QRTEA), which owns QVC and HSN, may adapt their television-based shopping model to digital livestream platforms, blending their legacy expertise in video-driven commerce with cutting-edge social technologies. This adaptation could attract a younger demographic, expanding their reach beyond traditional TV audiences.

Data is emerging that shows a hybrid model of influencer-driven commerce supported by established retailers can be especially potent. By aligning with well-known social media personalities, retailers can tap into pre-built communities of fans who trust the influencer’s recommendations. This trust translates into higher conversion rates and bigger basket sizes. The cost of customer acquisition via influencers, as cited by Influencer Marketing Hub, can be 30–50% lower than traditional digital ad spend, making it a highly efficient growth lever.

A study by McKinsey & Company suggests that companies integrating livestream commerce into their strategic planning can see sales growth rates that outpace traditional e-commerce by 2–3 times. Live events also help improve retention; repeat buyers from livestream sessions are often 20% more likely to return than those acquired through static web pages.

As penetration deepens, watch for companies reporting metrics like “average minutes watched per livestream” or “conversion rate from live sessions” in their earnings calls. These newly disclosed KPIs could provide early signals on who is truly riding the wave of this social shopping revolution.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.