YouTube Is Testing New Shopping Integration With Select Creators

Source: YouTube

Just days after Instagram launched new e-commerce features for IGTV, news broke that YouTube is also looking to expand its own e-commerce capabilities. 

A new Bloomberg report revealed the Google-owned platform is currently testing a new e-commerce integration with select creators in the U.S. 

Through the integration, creators can use YouTube's own software to tag and track products that they feature in their videos. These shoppable product tags will allow viewers to purchase products directly from YouTube and provide the platform itself with valuable analytics that can help its advertising business.

"Every toy, gadget, and good you see on YouTube could soon be for sale online -- not on Amazon, but right on YouTube itself," Bloomberg said. 

A YouTube spokesperson confirmed to Bloomberg that it's testing the feature "with a limited number of video channels" and that "creators will have control over the products that are displayed." However, YouTube didn't share any additional details such as how much of a cut they will take from creators who drive sales. 

Insights & Analysis: 

This isn't the first time that YouTube is diving into e-commerce. For example, in 2018, it introduced a shelf feature with TeeSpring that enables creators to add merchandise under their videos.

Due to the pandemic and a greater shift towards e-commerce, YouTube further testing the waters of e-commerce should be no surprise. Plus, other social media platforms like Instagram and Pinterest have recently increased efforts to build out more e-commerce functionalities to the delight of both brands and creators.

YouTube's new initiative is in alignment with emerging trends, including social commerce and influencer marketing. By rolling out shoppable product tags in videos, it can capitalize on these trends by leveraging the power and influence of its creators' to drive sales for products they feature. 

Already home to unboxing and product review content, shoppable product tags would not only fit into the platform naturally, but it likely will be embraced by viewers who often come to YouTube to find and discover new products through videos created by their favorite influencers.

With a majority of people considering YouTube influencers as the most-trusted and the platform's extensive library of shopping-friendly content, YouTube's e-commerce feature has the potential to be the most impactful, out of all of the social media platforms. In fact, it could become a significant part of the Google-owned platform's business model down the line as more and more consumers look to purchase products online instead of going in-store.

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SOURCE: Bloomberg