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Google plans to make YouTube a shopping site



A report from Bloomberg indicates that Google is transforming YouTube into a shopping site. What the consumers can see in product review videos, unboxing videos, tutorials, and so on can now actually purchase.

YouTube is a kind of shopping destination only as 55% of consumers use videos to make purchase decisions.

When consumers decide to purchase a product after watching a video, consumers have to go to another site to place the order.

Google wants that users can directly buy the products what they see in videos without leaving YouTube.

Google is planning to make this a reality by gathering information about products featured in videos. Presumably Google will try to make a percentage off of each transaction.

By collecting this information, YouTube creators are asked to tag and track products shown in their clips.

The end goal is that it creates YouTube’s video library into a product catalog where users can click on items they see and buy them directly.

YouTube spokesperson said that this project is an “experiment.”

Google is also in the process of testing an integration with Shopify to sell products via YouTube.

There’s no directive from YouTube whether there’s a financial incentive for creators to tag the products in their videos.

Where on one hand, this can open another revenue stream for YouTubers if they make a commission when viewers buy tagged products.

Also last year, Google rolled out Shopping actions in YouTube. It assists viewers with buying products shown in videos, though it’s necessary to visit another site to complete the whole shopping transaction.

Google CEO Sundar Pichai also specifically commented on the potential of shopping on YouTube. He is seeing things from a new perspective.

“When you think about things like unboxing and product reviews, those are a natural home for transactions as well.”


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