More is not always better: Examining the drivers of livestream sales from an information overload perspective

With the rapid development of Internet technologies, many retailers have incorporated live streaming as an emerging sales channel. Retailers and live streamers are eager to cover a wide range of products in their streams and entice viewers to stay for a longer duration. However, we propose from an information overload perspective that having more products and longer stay time may not always be better for sales. In this study, we empirically analyze 472 live streams to explore the curvilinear effects of the number of products and stay time on livestream shopping sales. Our findings suggest an inverted U-shaped relationship between the total number of products and the average audience stay time with sales. Moreover, we find that these relationships are contingent on the total duration of the stream and the age of the streamer. The results have practical implications for retailers regarding the design of effective livestream programs.