Google enters the e-commerce space and plans to turn YouTube into the shopping next shopping destination. Google might soon transform its video streaming platform Youtube into a new strong contender for e-commerce like Amazon and Alibaba. On recent call earnings, Google CEO Sundar Pichai said that the ‘unboxing’ videos could be turned into a massive shopping opportunity.
A Bloomberg report suggests that the world’s largest video platform has asked creators to use Youtube software to tag and track product features in their clips. The data will then be linked to analytics and shopping tools from parent Google. This means that whenever a user is watching a video and likes a certain product, they can easily buy it with a single click. Currently, the feature is testing with a limited number of video channels. The channel creators will have control over what products are displayed to avoid any unnecessary product placement in their content. As per Bloomberg reports. It is still unclear how Google will generate revenues from the sales but it has started offering subscriptions for the creators and takes a cut of 30% from those payments.
Youtube is also testing the integration with Canadian e-commerce platform Shopify. The prospect of collaboration with the e-commerce giant could have a huge impact on the e-commerce world. It has serious potential to transform the e-commerce industry and experience by integrating the advertising process directly with sales. The time spent between a consumer seeing something that they like and buying it could be possibly reduced to the shortest duration.
According to Bloomberg Intelligence, the e-commerce retail market, excluding China, may grow to $2.8 trillion by 2025. Google has really not seen success in the e-commerce space much like Facebook and underdog Pinterest. The tech giant has instead focused on selling ads and sending users to other stores than selling themselves. This pandemic witnessed a boom in e-commerce with people staying at home and buying online. Facebook and Instagram have leveraged its social media platform as hotbeds for online shopping. The sales have soared in the past few months for Amazon and Facebook whereas Google watched from the sidelines. Google has not utilized Youtube optimally and this is a brilliant move to topple Amazon and Alibaba’s dominance. This also gives content creators an opportunity for more earnings. A win-win situation for both!
Read more: Google Agrees To Pay News Publishers $1 Billion For Their Content
