- YouTube could soon include a shopping platform
- It will include a vast catalog of items that viewers can purchase
- YouTube confirmed the company is testing these features with few video channels
Youtube recently started asking creators to use software to tag and track products featured in their clips. The data will then be linked to analytics and shopping tools from Google. YouTube could soon sell products on the platform itself.
Youtube’s Shopping Platform’s Purpose
YouTube’s goal is to convert its bounty of videos into an item catalog that viewers can peruse. Users can click and buy directly. The company is also testing a new integration with Shopify Inc. for selling items through YouTube.
It’s unclear how YouTube will generate revenue from these sales. However, the service has begun offering subscriptions for creators and takes a cut of 30% from those payments. “YouTube is one of the least utilized assets,” said Andy Ellwood, president of e-commerce startup Basket. “If they decided they want to invest in it, it’s a huge opportunity for them.”
Alphabet Inc.’s Google has taken multiple stabs at online commerce, with limited success. The company prefers to sell ads that send people to other digital stores, rather than selling products itself.
However, the pandemic has hammered marketing budgets. This is particularly in the travel and physical retail sectors – that are major Google advertisers. Meanwhile, e-commerce has boomed as people order more products online.
Google was sidelined by rivals such as Facebook Inc. as their apps became hotbeds of online shopping. Amazon has seen sales soar, while Google suffered a revenue decline in Q2.
A recent survey revealed social commerce as a hot area, especially for Facebook and Pinterest. After Facebook unveiled an updated Shops feature, the company’s stock jumped. Google doesn’t want to miss out on such an opportunity, either.
For months now, Google executives have signaled that YouTube will be central to their e-commerce strategy. CEO Sundar Pichai recently suggested YouTube’s product unboxing videos could be turned into a shopping opportunity. The video site is full of other popular categories, such as makeup and cooking tutorials, where creators tout commercial products on air.
A YouTube spokesperson confirmed the company is testing these features with a limited number of video channels. The spokesperson said creators will have control over the products that are displayed,. The company described this as an experiment and declined to share more details.