YouTube, the popular video-sharing website, has introduced a new feature called YouTube Shopping. This feature allows viewers to buy products they see in videos without leaving the YouTube platform. For people who make money by recommending products, known as affiliate marketers, this is an important development.
YouTube is a widely used platform. Every month, 2.7 billion people visit YouTube, making it a potentially large marketplace. In 2022, YouTube earned $31.5 billion from advertising alone. Now, with YouTube Shopping, they're aiming to increase their revenue even further.
Since the COVID-19 pandemic, more people have been shopping online instead of in physical stores. Additionally, social media influencers have become increasingly important in shaping consumer behavior. Experts predict that by the end of 2024, influencer marketing will be worth $24 billion. Companies are increasing their spending on this type of marketing by about 16% each year.
YouTube Shopping is part of a larger trend in social media platforms adding e-commerce features. It's designed to make it easier for viewers to purchase products they see in videos, and for content creators to earn money from their recommendations. This new feature could change how people use YouTube, turning it into a platform for both entertainment and shopping.
In this article, we'll explain how YouTube Shopping works and how content creators can use it to earn money. We'll look at the different features it offers, the companies partnering with YouTube, and tips for using it effectively.
How YouTube Shopping works
YouTube Shopping is a new way to buy things you see in videos. In the past, if you saw something you liked in a video, you'd have to leave YouTube to buy it. Now, you can shop right on YouTube.
Here's how it works: When you're watching a video, you might see small icons or tags on products. These are things you can buy. If you click on these tags, you'll see more information about the product, like its price and where to buy it. You can then buy the item without leaving YouTube.
For people who make videos (we call them creators), YouTube Shopping lets them tag products in their videos. They can do this in new videos and even in old ones they've already uploaded. This means that any video can now become a kind of online store.
YouTube Shopping also works during live streams. This means that if a creator is talking about a product live, viewers can buy it right then and there. It's like a TV shopping channel, but on YouTube.
The system is designed to be easy for both viewers and creators. Viewers get a smooth shopping experience, and creators get a new way to make money from their videos.
Key features of YouTube shopping
YouTube Shopping has several important features that make it useful for both creators and viewers. Let's look at each one in detail:
1. Affiliate hub: This is a special place on YouTube where creators can find companies to work with. In the Affiliate Hub, creators can see lists of companies that want to sell their products on YouTube. They can also see how much money they'll make from each sale (this is called a commission). Creators can even get special discount codes to share with their viewers and request free samples of products to try out.
2. Live shopping: This feature allows creators to sell products during live streams. While a creator is streaming live, they can tag products they're talking about. Viewers can then click on these tags to buy the products without stopping the live stream. This creates an interactive shopping experience, almost like a digital version of a home shopping network.
3. Shopping collections: Creators can group related products together into collections. For example, a creator who talks about technology might make a collection called "Best Smartphones of 2024" or "Must-Have Gadgets for Students". These collections make it easier for viewers to find and buy related products.
4. Product tagging: This feature lets creators add clickable tags to products in their videos. These tags can be added to new videos and even to old ones. When a viewer clicks on a tag, they see more information about the product and can buy it. This turns every video into a potential shopping opportunity.
5. Fourthwall integration: Fourthwall is a tool that helps creators set up their own online stores. With YouTube Shopping, creators can now integrate these stores directly into their YouTube channel. This means creators can sell their own merchandise (like t-shirts or mugs with their logo) right on YouTube.
6. In-built checkout process: Viewers can complete their purchase without leaving YouTube. This smooth process makes it more likely that viewers will buy products, as they don't have to navigate to a different website.
These features work together to create a comprehensive shopping experience on YouTube. They make it easy for creators to sell products and for viewers to buy them, all while watching videos.
How creators can make money with YouTube shopping
YouTube Shopping offers creators a new way to earn money from their videos. Here's a detailed look at how creators can use this feature:
1. Partnering with brands: YouTube has partnered with many well-known companies for YouTube Shopping. These include tech brands like Samsung and LG, beauty brands like Sephora and Ulta, fashion brands like Nordstrom and Urban Outfitters, and big retailers like Walmart and Target. Creators can choose to work with brands that fit their content. For example, a creator who makes videos about home decor might partner with Pottery Barn or Wayfair.
2. Earning commissions: When a viewer buys a product through a creator's video, the creator earns a commission. This is a percentage of the sale price. The exact percentage varies depending on the brand and the product. Creators can see these commission rates in the Affiliate Hub.
3. Using the affiliate hub: The Affiliate Hub is where creators manage their partnerships. Here, they can see which brands they're working with, what products are available, and how much commission they'll earn. They can also get special discount codes to share with their viewers, which can encourage more sales.
4. Tagging products: Creators can tag products in their videos. This works for new videos and old ones. When tagging a product, creators can add information like the price and a brief description. These tags appear as small icons in the video that viewers can click on.
5. Creating shopping collections: Creators can group related products into collections. This is useful for themed videos or for creating gift guides. For example, a creator might make a "Back to School Essentials" collection.
6. Live shopping: During live streams, creators can showcase products in real-time. They can answer viewers' questions about the products and encourage immediate purchases. This creates an interactive shopping experience that can be very effective.
7. Promoting products: Creators can talk about products naturally in their videos. They might do product reviews, tutorials showing how to use a product, or simply mention products they like. The key is to be authentic and only promote products that genuinely fit with their content and audience.
8. Tracking performance: YouTube provides analytics tools that show creators how well their product tags and collections are performing. They can see how many views, clicks, and sales they're generating. This information helps creators understand what's working and what isn't, so they can adjust their strategy.
To use YouTube Shopping, creators need to be part of the YouTube Partner Program. This means they need to have at least 1,000 subscribers and 4,000 watch hours in the past year. Also, their content shouldn't be primarily made for children.
By effectively using these features, creators can turn their YouTube channel into a source of income beyond just ad revenue. It allows them to monetize their influence and product recommendations directly.
Tips for selling more with YouTube shopping
1. Use limited-time promo codes
One way to sell more products is by offering special discount codes that only work for a short time. For example, a creator might tell their viewers, "If you use the code SUMMER20, you'll get 20% off, but only for the next day!" This makes people want to buy quickly because they don't want to miss out on the deal. It's like when a store has a one-day sale – people rush to buy before it's over. Creators can mention these codes in their videos or live streams to get people excited about buying.
2. Answer questions during live streams
When creators are streaming live, they can talk to their viewers in real-time. This is a great chance to answer questions about the products they're selling. For example, if someone asks, "Does this shirt run small?" the creator can answer right away. They might even try on the shirt to show how it fits. This helps build trust because viewers can see the creator being honest about the product.
3. Make themed collections with good pictures
Creators can group similar products together into collections. For instance, a creator who talks about makeup might make a "Summer Beauty Essentials" collection. This could include sunscreen, waterproof mascara, and bright lipsticks. It's important to use nice pictures of the products and write good descriptions. This helps viewers imagine using the products themselves. It's like when a store arranges items nicely in a window display – it makes people want to buy them.
4. Use YouTube shorts to show products quickly
YouTube Shorts are very short videos, usually less than a minute long. Creators can use these to quickly show off products. For example, they might make a 30-second video showing all the colors of a new eyeshadow palette. These short videos can make people curious to learn more, which might lead them to watch longer videos or buy the product.
5. Look at the numbers and make changes
YouTube gives creators information about how well their products are selling. This is called analytics. Creators should look at this information regularly to see what's working and what's not. For example, they might notice that beauty products sell well, but tech gadgets don't. They can use this information to decide what to feature in future videos. If something isn't selling well, they might need to talk about it differently or stop featuring it.
Why YouTube shopping is important
1. New way for creators to make money
YouTube Shopping gives people who make videos (creators) a new way to earn money. Before, they mostly made money from ads that play before or during their videos. Now, they can make money when viewers buy products they recommend. This is good for creators because it gives them another way to earn income from their work.
2. Easier shopping for viewers
YouTube Shopping makes it simpler for people watching videos to buy things they like. Instead of having to search for a product online after seeing it in a video, they can buy it right away on YouTube. This is very convenient. It's like being able to buy something you see on TV with just a click of a button, without having to go to a store or search for it online.
3. Good for brands and stores
For companies that sell products, YouTube Shopping is a great opportunity. YouTube has over 2 billion people who use it every month. That's a lot of potential customers. Also, many viewers trust the creators they watch and might want to buy products these creators recommend. It's like having a popular friend tell you about a great product – you're more likely to buy it.
4. Changes how people shop online
YouTube Shopping is part of a bigger change in how people buy things online. More and more, social media sites are becoming places where people can shop. This makes shopping more social and interactive. It's like the difference between shopping alone online and shopping with friends who can give you advice.
5. Might change YouTube content
YouTube Shopping could change the kinds of videos people make. Creators might think more about how to include products in their videos in a natural way. This could lead to more videos about products, but creators will need to find ways to talk about products while still making interesting videos. It's like how some TV shows include product placements – they need to do it in a way that fits with the show and doesn't annoy viewers.
6. Helps smaller creators and businesses
YouTube Shopping could help smaller creators and businesses reach more people. It might be easier for them to sell their products to specific groups of people who are interested. This could lead to more variety in the products available online. It's like how small, unique shops can now reach customers all over the world, not just in their local area.
Conclusion
That's it! YouTube Shopping is a do-it-yourself marketplace right at your fingertips, changing how we see video content and online shopping. With the right approach, your channel can become a busy place where recommendations bring in sales. Picture sharing products you love and seeing your audience respond, not just with likes and comments, but by making purchases because they trust your opinion.
So, take advantage of YouTube Shopping. It's your chance to make a big difference—and earn money—by doing what you love. Best of luck!
