Uncovering the negative impact of flash sales on instant order cancellations in live streaming

As live commerce continues to surge in popularity, many firms have turned to flash sales as a strategy to capture consumer attention and boost sales. However, the potential downsides of such promotions have received little scholarly attention. This paper draws on a real-world data analysis and two controlled experiments to demonstrate that flash sales can have unintended negative consequences by increasing instant order cancellations during livestreams, that is, real-time cancellations by consumers before order fulfillment. We further find that the adverse effect is mediated by perceived post-purchase regret following the purchases induced by flash sales. Moreover, this effect is amplified for hedonic products, while a larger follower base for the livestreaming anchor helps attenuate the negative consequence. These findings contribute to a more nuanced understanding of flash sales and consumer behavior in live commerce settings, offering practical implications for firms seeking to design effective promotional strategies.