While You Were Planning, They Were Selling: The New Rules of Commerce

November 18, 2024

Marketing

The new rules of ecommerce: how live commerce is changing the face of the industry

Think about your last marketing meeting. How many times did someone say "we need more data" or "let's A/B test that"? Now, while you were deliberating over email subject lines, Made by Mitchell just sold a product every second for 12 straight hours.

Let that one sink in.

The Speed Game You're Losing

Remember when Jennifer Coolidge showed up in E.l.f.'s Super Bowl ad? While other brands spent months planning their big game moment, E.l.f. conceived, shot, and delivered that entire campaign in three weeks. Three. Weeks.

But here's the real kicker – when their entire holiday campaign fell apart 1.5 weeks before Thanksgiving, they didn't panic. They pivoted.

Your Community Strategy Is Probably Backwards

You're probably thinking, "But we have a strong community engagement plan!" Let me guess – scheduled posts, carefully curated content calendar, quarterly community surveys?

Mitchell Halliday would like a word.

Before Made by Mitchell became the first UK beauty brand to hit $1M in sales in a single day on TikTok Shop, they did something radical: they built a community before they had a single product.

When their community asked for "questionable" colors, they made them. When they wanted creamy instead of matte, the entire product line shifted. When's the last time your brand changed direction because your community asked for it?

The Live Commerce Revolution You're Missing

"But live selling isn't for our brand," you say. Really? Is your brand too prestigious for a 37.7% click-to-order rate? Because that's what Jason Wu Beauty achieved during NYFW. For context, anything above 10% is considered a win.

Here's a thought that should keep you up at night: While you're reading this, someone else is live streaming to your target audience. And they're buying - with 50% of TikTok users purchasing after watching live streams.

The Psychology Behind Live Commerce Success

While you're debating whether psychology matters in e-commerce, live sellers are literally hacking your customers' brains. Let's talk about why your audience can't stop watching – and more importantly, buying.

The "Can't Look Away" Effect
Ever wonder why people stay glued to live shopping for 10 minutes when they won't give your perfectly curated Instagram post more than 0.5 seconds? It's called "flow state," and live commerce creators have mastered it. While you're A/B testing email subject lines, they're creating dopamine-driven shopping experiences that make Netflix binges look amateur.

The FOMO Factory
"Only 3 left!" "Sarah just bought this!" "Limited time offer ending in 5...4...3..."
Sound familiar? That's because it works. When Made by Mitchell shows real-time inventory counts dropping during lives, they're not just sharing data – they're triggering primal survival instincts. Your rational brain knows you don't need another highlighter. Your FOMO brain? It's already reaching for the credit card.

The Trust Trap
Here's the beautiful irony: While you're crafting the perfect brand voice guidelines, live sellers are building trust by being imperfect. A slightly messy demo, an "oops" moment, or an unscripted answer to a customer question? That's not unprofessional – that's psychology gold. It's why E.l.f.'s CEO can go live with bed head and still drive more sales than your perfectly polished campaign.

The Community Connection
Remember when marketing was about broadcasting TO your audience? Live commerce flipped that script. When viewers see others asking questions they were thinking about, getting real-time answers, and making purchases – they're not just watching a sale. They're part of a movement. And movements don't need focus groups.

The Entertainment Factor
Here's a wild thought: What if shopping was actually fun? While you're optimizing your checkout flow, 42% of U.S. live commerce viewers are tuning in for entertainment. They came for the show, stayed for the community, and bought because... well, wouldn't you?

Still think psychology doesn't matter in e-commerce? While you were reading this section, someone just sold out their entire inventory on a live stream. And their customers? They're thanking them for the opportunity to spend money.

The question isn't whether these psychological triggers work – the sales numbers prove they do. The question is: why aren't you using them?

P.S. That urge you feel to immediately start a live stream after reading this? That's psychology too. Maybe you should listen to it.

Overcoming Objections to Live Commerce

Let's address those "but we can't because..." excuses that are keeping you from your next million-dollar revenue stream.

"Our Products Are Too Complex"
Really? Davidoff successfully sells luxury cigars through live commerce. If someone can explain the subtle notes of Dominican tobacco in real-time, your product isn't "too complex." In fact, complex products often perform better in live formats where customers can ask detailed questions and see real demonstrations.

"We Don't Have the Right Host"
Fun fact: While you're searching for the "perfect" influencer, Quivr saw a 150% spike in sales during a livestream where their founder simply talked to 50 people about their brand story[2]. Sometimes authenticity beats perfection. And if Kraft Heinz can make ketchup exciting on livestream, your product probably isn't the problem.

"It Doesn't Fit Our Brand Image"
Tell that to Nordstrom, who hosted over 50 luxury styling events via livestream. Or Sotheby's and Christie's – literally 18th-century auction houses – who are now conducting live auctions online. Your brand image isn't at risk; it's at risk of becoming irrelevant.

"We Lack Technical Capabilities"
Here's the reality check: Fresh Market launched their first livestream from a recently renovated store and saw three times the industry average click-through rates. You don't need a Hollywood studio. Most brands start with existing platforms and basic equipment. The technical barrier is lower than your marketing team's resistance to change.

"Our Audience Isn't Into This"
Interesting theory. Meanwhile:

  • Beauty brands are seeing 40% conversion rates.
  • Luxury retailers are achieving 8x return on ad spend.
  • Even B2B companies are successfully using live commerce for complex product demonstrations.

Here's the uncomfortable truth: These aren't really objections – they're excuses. While you're listing reasons why live commerce won't work for your brand, your competitors are probably already testing it. Still not convinced? The average conversion rate for live commerce is 30% – nearly ten times higher than traditional e-commerce. But sure, keep telling yourself why it won't work for your brand.

The E.l.f. Effect: Why "Always-On" Isn't What You Think

You've probably heard about E.l.f.'s "always-on" strategy.  Let's shatter your perception of what "always-on" really means. While you're scheduling content for next quarter, e.l.f. just scrapped tomorrow's campaign because TikTok decided something else was cool. And guess what? They're winning.


When e.l.f.'s Chief Digital Officer says they "don't wait, don't dwell, and don't have red tape," she's not kidding. While other brands were forming committees to discuss TikTok strategy, e.l.f. was already creating the platform's most viral campaign in history with over 7 billion views. When customers screamed for bronzing drops during a CEO TikTok live, do you know what happened? The CEO walked straight to product development.

What "Pencil Planning" Really Means


Remember that perfectly crafted 2024 marketing calendar you're so proud of? E.l.f. treats their marketing calendar as a "living document". That means when their private Facebook group starts buzzing about a new beauty trend at 9 AM, they're launching a response by lunch. No committees. No focus groups. Just pure, unfiltered speed.

The Data-Driven Chaos


But here's the beautiful irony – this isn't random chaos. E.l.f. combines:
- Zero and first-party data from diverse sources
- Website behaviours
- App interactions
- Customer service feedback
- Real-time social signals

  • Zero and first-party data from diverse sources
  • Website behaviours
  • App interactions
  • Customer service feedback
  • Real-time social signals

All of this feeds into their customer data platform, creating what they call their "digital ecosystem" rather than just another e-commerce channel.

When Things Go Wrong (And They Do)

Remember their holiday campaign that fell apart 1.5 weeks before Thanksgiving? That's the kind of crisis that would send most marketing teams into a panic spiral. But when you're built for speed, crisis becomes opportunity.

The Real Definition of Community-Led

While other brands claim to be community-led, e.l.f. has turned it into a science. Their Beauty Squad isn't just a loyalty program – it's a 3.5-million-member focus group that's actually running the show. When they say jump, e.l.f. doesn't ask how high – they're already in the air.

The Uncomfortable Truth

While your brand probably has:

  • Monthly strategy meetings
  • Quarterly planning sessions
  • Annual budget reviews

E.l.f. has something better: the ability to say "scrap it" at the last minute if something isn't feeling right[1].

And their 16 consecutive quarters of growth suggest they might be onto something.

Ask yourself: How many layers of approval does it take for your brand to respond to customer feedback? Do you have a good system in place for sending feedback straight to the top or is your social media manager just sending hopeful 💜s & "great idea!"s to your customers?

The Wake-Up Call Your Brand Needs

Still think your quarterly strategy meetings are keeping you competitive? While you're planning, beauty products are dominating TikTok Shop with $396 million in sales over just six months - that's 80% of all purchases on the platform.

Made by Mitchell's or e.l.f cosmetics success isn't just about sales - they built a community before finalizing product lines and let product development follow community demand.

Let's do a quick reality check:

  • When was the last time your brand launched a product based on yesterday's social comments?
  • How quickly can you pivot your entire marketing strategy?
  • Does your CEO even know how to go live on TikTok?

The Uncomfortable Next Steps

Here's what you should do tomorrow (not next quarter):

1. Delete your perfectly planned content calendar
2. Get on live stream (yes, even if it's terrible)
3. Actually listen to what your community wants (revolutionary, I know)

But let's be honest - you probably won't. You'll probably schedule another meeting to discuss these ideas. And while you're in that meeting, E.l.f. will launch three new products, Made by Mitchell will make another million, and your potential customers will buy from someone else's livestream.

The beauty industry (or any other DTC product) isn't waiting for your perfect strategy. The question is: how much longer will you?

P.S. Still thinking about scheduling that strategy meeting? Made by Mitchell just sold another thousand units.

P.P.S. The best time to go live was yesterday. The second best time is now.

Hey, I'm eKat!

A recovering corporate eCommerce girly. Serial BS-slayer with a PhD in keeping it real. Clinically allergic to Comic Sans. Part-designer, part-strategist, 100% multi-passionate. Your favorite marketing bro's worst nightmare.

I occasionally start fires in the status quo while I spill the tea on all things design & eComm.

Obsessed with:

💣 Breaking rules that deserve it

🕳️ Turning chaos into cash

🤘 Making design actually work


WARNING: Subscription side effects may include sudden clarity and chronic profitability. Not responsible for sudden urges to rebuild your entire business strategy.

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