YouTube Aims To Become E-Commerce Hub Like Amazon, Flipkart; Begins Tagging Products On Videos
The dream of shopping for products you see in YouTube videos can soon become a reality!
Read to know more about YouTube’s future plan
How Will This Work?
Many YouTubers review a variety of products on their channel and some feature some products in their videos showcasing makeup or cooking tutorials.
On a recent earnings call, Chief Executive Officer of Alphabet, Sundar Pichai had suggested YouTube’s popular “unboxing” videos could be turned into a shopping opportunity.
YouTube is asking its content creators to use its software to tag and track products featured in their videos. This data will be connected to Google Analytics and Google’s Shopping feature.
The goal of this YouTube feature will be that the viewers can examine, click on, and buy directly from the vast catalog created by the world’s largest video platform.
Youtube is testing these features with a limited number of video channels, said a Youtube spokesperson. In addition, the creators will have control over the products that are displayed.
The company has described this as an experiment!
Will This Be a Success?
Selling products through its platform can be seen as a move to diversify YouTube’s revenue for creators beyond ads.
For now, the company is offering subscriptions for creators. The company is taking a cut of 30% from those payments. However, it’s not clear how the revenue structure through this service will work.
Andy Ellwood, President of Basket, said, “YouTube is one of the least utilized assets.” He added, “If they decided they want to invest in it, it’s a huge opportunity for them.”
Last year, YouTube started testing a new integration with Shopify Inc. for selling items through YouTube. Through this creators can list as many as 12 items for sale below their videos.
For many years, Amazon and Walmart already have shoppable videos. Social media apps like Facebook and Instagram have gained fame recently for its online shopping feature.
If YouTube’s ‘experiment’ does become successful, YouTube with its humongous creators and viewers base across the globe will pose a challenge for e-commerce giants like Amazon, Walmart, Alibaba Group.