CNBC: Chinese Livestreamers Can Rake In Billions Of Dollars In Hours. How Long Will It Last?

The real-time online selling phenomenon — also called “live commerce” or “livestreaming e-commerce” — took off in China after the onset of the coronavirus pandemic last year, and is growing in other countries.

Using in-house staff to conduct livestream sales sessions helps businesses save on costs, since influencers charge a commission and about 20% to 30% of transaction volume ends up being returned, according to Oliver Wyman’s Dave Xie.

In particular for this year’s Singles Day, internet influencers have made a selling point of promoting prices that are at least as low as last year, said Xie’s colleague Pedro Yip, head of retail and consumer goods practice at Oliver Wyman.

But that means a smaller profit for businesses, and some brands that worked with Li and Viya have ended up in long negotiations over the final selling price for products, Yip said.

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