Google wants to turn its video site YouTube into a major shopping destination and become a competitor to Amazon and Alibaba.For every toy, gadget and other item you see on youtube, users will soon be able to buy it directly on the site. Not on Amazon, of course, but directly on YouTube.
YouTube, the world's largest video site, recently began requiring creators to use YouTube software to mark and track products in their video works. The data will then be linked to Google's Analytics and shopping tools.
According to people familiar with the matter, Google's aim is to turn a large number of videos on YouTube into a huge catalog that viewers can browse, click on and buy directly.
In addition, YouTube is testing further integration with Shopify, an e-commerce company, to sell products through YouTube.
In response, a YouTube spokesman confirmed that the company is testing these features on a limited number of video channels. The creator will have control of the product displayed, the spokesman said. YouTube said it was an experiment and declined to give more details.
But analysts said the moves could turn YouTube from an advertising giant into an e-commerce giant, making it a new competitor for leading e-commerce companies such as Amazon and Alibaba.
Andy Elwood (Andy Ellwood), Basket president of e-commerce startups, said :" YouTube is one of the assets with the lowest utilization rate, and if they decide to invest, it is a huge superior for them ."
It's not clear how YouTube will generate revenue from these sales, but YouTube has already started offering subscriptions to creators and extracting a 30% commission from these payments.
Google has tried online commerce many times before, but with little success. Most of the time, Google tends to sell ads that take users to other digital stores rather than sell their products themselves.
But this year's new coronavirus epidemic has hit marketing budgets hard, especially in tourism and physical retail, which are Google's main source of advertisers. At the same time, e-commerce is booming as more people stay at home and buy more goods. While Facebook and instagram are dabbling in e-commerce, Google has become a bystander.
Amazon's sales soared in the second quarter of this year, while Google suffered its first ever revenue decline in the second quarter. In May, as Facebook announced more involvement in e-commerce, Google clearly didn't want to miss the opportunity.
Google executives have been saying for months that YouTube will be at the heart of their e-commerce strategy. On a recent earnings conference call, Google CEO Sandal Pichai (Sundar Pichai) said a large number of popular product "unpacking" videos on the YouTube could be converted into a shopping opportunity.
In addition, Google has also adjusted its e-commerce and payment departments. In July, Google announced a plan to eliminate the fees charged to retailers by Google's shopping service to attract merchants from rival Amazon.
Google also announced that it will integrate with Shopify and PayPal to help businesses manage inventory and sell products directly on Google.