Abstract
Live-stream, with its diverse content and real-time interaction with the audience, has become a powerful means of boosting online traffic. In order to benefit from the massive traffic, live-stream platforms have begun to encourage live promotions driving potential consumers to traditional e-commerce platforms, while attempting to incorporate e-commerce features into themselves. We develop a stylized model consisting of a third-party seller, a live-stream platform and a traditional e-commerce platform to investigate their strategic interactions, and consumer’s switching behavior between traditional and live-stream channels. We share managerial insights in live-stream platform design, and channel strategies for third-party sellers.
Keywords: live-stream selling; platform design; channel strategy; consumer switching behavior