Social Media Platforms Add New Social Commerce Features To Diversify Revenue Streams

Source: TikTok

With the holiday season here, social media platforms are diving deep into social commerce. TikTok, YouTube, and even OnlyFans made significant moves to integrate shopping into their apps this past week.

TikTok Shop Comes To The U.S.

TikTok started rolling out TikTok Shop in the U.S. Previously, it was only available in the U.K. and seven countries in Southeast Asia. The feature allows creators and brands to sell products to users directly in-app through videos, LIVE, and a product showcase tab on their profile. TikTok will take a 5% commission on purchases, but it will lower that fee to 1.8% for the first 90 days for new creators and brands.

YouTube Makes Shorts Shoppable

YouTube, which has already supported shopping across its platform, is expanding more of its capabilities for creators. First, it's testing shopping features for Shorts, its short-form video. Eligible creators can add product tags from their stores to their videos, which viewers can click through to browse and shop.

In addition, it's experimenting with an affiliate program, where creators can earn commissions for sales they drive through recommended products featured in both Shorts and long-form videos. YouTube, merchants, and creators will split the sales.

OnlyFans Adds Creator Merchandise

OnlyFans, which has a creator community that is expanding beyond adult content creators, also announced new shopping features. Through a new integration with Spring, creators can design and sell their own merchandise through an embedded, scrollable storefront that appears on their profiles.

Platforms Look To Diversify Revenue Streams

Platforms are ramping up their shopping efforts to diversify their revenue streams and creators' revenue streams. The economic downturn has contributed to decreased advertising spending, leading platforms to turn to social commerce to recoup some of their lost ad revenue. At the same time, social commerce provides another way to cater to creators on their platforms who want to monetize their digital presence.

Now is the perfect time for these platforms to integrate shopping features since consumers are eager to purchase from their favorite creators and brands during the holiday season. Unfortunately, social commerce in the U.S. is far behind other parts of the world. Getting it to a point like China, where it's an estimated $300 billion market, will require a lot of experimentation and time. As seen with these examples, this means in-shop apps, affiliate marketing, shoppable content, and integrations with other players in the commerce space.