According to the latest news, Google will reportedly add a shopping feature on YouTube. It is a move that serves notice to e-commerce companies. This new shopping feature will allow YouTube viewers to buy products directly from the YouTube platform. The company declared that this feature is currently in its testing phase.
YouTube Shopping feature arriving soon
Bloomberg reported that YouTube has been prompting certain content creators to tag products in their videos. With this, it seems that Google is aiming at collecting data for its analytics and shopping tools before implementing the shopping feature.
A YouTube representative confirmed that creators will have control over the products they tag in their videos. However, as of now, there is no final word from that company that when the feature will be rolled out. Similarly, there is no information about YouTube’s commission and how the process will be implemented.
It should be noted that as of now, YouTube rakes in a 30% cut from the creators’ revenue through paid subscriptions. According to some rumors, it is being estimated that the charge for using the platform for product sales will probably be less than this gigantic 30% one.
The pandemic has negatively affected ad-based revenue, while, on the other hand, e-commerce sales revenue has soared all over the world. Google plan with YouTube works in line with this trend because if some feature like this finally gets rolled out then YouTube’s reliance on Google Ads will be reduced. Moreover, a completely new platform and that also with the potential of constant buys and sales will be generated.
Almost every one of us knows that almost more than half of all YouTube content is nothing but product reviews. In the grey market, YouTube is considered as the undiscovered mine of sales opportunity. A good number of people create these videos and provides their own positive or negative feedback about a particular product and a bigger number of people simply follow the source before making a buying decision.
With a built-in e-commerce interface like this, YouTube will be able to capitalize on this user behavior and their revenue will also increase.
Apart from this, earlier this year, Google has announced Shopify support for Google Shopping, its online marketplace. Shopify is also assisting the tech giant in developing this new feature. It seems that much like its rivals Amazon and Facebook, Google is also intending at harnessing the sheer power of the multi-billion dollar e-commerce industry by incorporating it as a feature on YouTube.
Do share your thoughts on the upcoming YouTube Shopping feature in the comment section below!