A groundbreaking step in social commerce?

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Youtube is currently testing a new shopping function to enable effortless shopping on the platform. Our guest author explains what that looks like and how you can optimize video selling.

Youtube – almost everyone has called up this video portal before, be it to watch cute cat videos, to get inspiration for the next DIY project or to have the Pythagorean theorem explained to you. According to its own information, the portal has more than two billion users – that is almost a third of all Internet users. Together, they produce an average of around one billion hours of playback time every day. From the retailer’s point of view, there is huge potential in these enormous numbers – not only for advertising, but also to actually actively initiate the immediate buying process. It is therefore only a matter of time before YouTube introduces a corresponding shopping feature across the board.

Against the background of the ever-increasing social commerce trend, it is astonishing that YouTube has not yet officially launched its own feature of its own, as it would be made for such opportunities: Countless unboxing videos, beauty tutorials or product review videos are already shaping them Content landscape of the platform and offer great potential for online trading. And indeed: the subsidiary of Google is currently in one Beta test phase for an integrated shopping function. This enables users to make direct purchases – without having to leave the video portal via affiliate links, for example.

As part of the beta test, a few Youtubers have been taking part in the test run since the beginning of this year and link the products used in the videos they have created. Users can then view these in a list if required by clicking on a small shopping cart icon in the lower left corner of the video. Once there, it’s possible to explore product pages, related videos, and of course shopping options. Currently, the trial is only available to users in the United States via iOS, Android, or the desktop.

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Social networks such as Instagram or Facebook have already introduced specific shopping functions. Nevertheless, the features are largely in their infancy, because the promotion of products is now common – for well-known influencers this is even the main source of income these days – but specific tools such as Facebook shops are relatively new and not yet fully established.

In the future, however, it can be assumed that these features will become more and more important. Because while third-party cookies are dying out and personalized advertising is becoming more and more difficult, the targeted feed from social networks ensures that users hit the spot: Those who consume a lot of content from sports brands or influencers, for example, will also get corresponding products suggested by those postings .

If we look at the known formats and the YouTube algorithm, then the platform is made for social commerce. Similar or thematically appropriate suggestions are made by the algorithm. This enables users to quickly find the content that interests them – and for which they are more willing to buy the relevant products. Quite similar to the feed of other social networks. In addition to the aforementioned unboxing videos or product tests, there is also the format of live video shopping outside of YouTube. Here, companies or brands specifically produce videos that they broadcast via live stream in order to sell their goods. It is possible that such live video shopping formats with a corresponding purchase function will soon also come to YouTube – in any case, it is very suitable for this.

Youtube shorts in particular offer an exciting option for integrating a shopping feature: the short videos with a maximum length of 60 seconds are reminiscent of formats on other platforms and address the increasingly fast-moving consumer behavior of younger users.

So there are exciting opportunities for online retailers. But what is the best way to sell via video stream? The following basic tips form a good basis – whether on YouTube or similar platforms.

• Pay attention to platform specifics:

Youtube is Youtube – and not Instagram or Facebook. It is therefore advisable to familiarize yourself with the specifics of the video platform (or the particular platform used). That means: which data are interesting for users, what kind of language or brief description does it address? What special formats are there? Different approaches can be tried out and then evaluated. This can also mean, for example, teaming up with influencers or other multipliers if they fit the target group.

• Use niches and know the target group:

Although Youtube has now also implemented a short video format that could be combined very well with a purchase function in the future, the platform stands out in contrast to others in particular because of the length of its content. This can be interpreted as a great advantage, especially for niche products. These target groups often want to deal intensively with the issues – a good example of this is the gaming industry. A solid network and maintaining relationships with the relevant content creators is therefore particularly valuable: This ensures that products are ultimately placed in the best possible way.

• Always update product information:

Many people do long and intensive research, comparing different providers and brands before they finally decide on a product. If it turns out that it is not available in the desired size, then that is very disappointing. Everyone has probably had this experience before, and therefore everyone knows how quickly such a situation can lead to the purchase process being terminated. In the worst case, the user also avoids future shop visits. It is therefore essential to always update product information and, above all, availability and keep it up to date, even if that sounds irrelevant.

• Embed in an exciting context:

Videos have to be natural and not seem artificial. Pure sales pitches and flat slogans with no real added value or substance lead to users jumping off. An exciting hook or the embedding in an interesting or current context means that you stick with it, and are therefore the be-all and end-all for a successful YouTube strategy. Pure sales videos that focus solely on one product are boring and don’t generate any further interaction.

Ultimately, it remains to be seen when the shopping feature will be introduced. However, given the test runs that have already been announced, it is fairly certain that it will soon be the case. The platform is currently lagging behind other networks in terms of e-commerce, but once the time has come, there will be exciting opportunities for online retailers who will promote the synergy between retail and digital content.

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