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Alphabet Inc’s (NASDAQ: GOOGL) YouTube on Tuesday said it is partnering with Shopify Inc (NYSE: SHOP) to allow merchants to sell through the video platform and let viewers purchase products without leaving its website.
The announcement comes amid consumers returning to physical stores after the COVID-19 pandemic, which let the e-commerce platform Shopify lose its prime spot as Canada’s most valuable company, as its shares have lost more than three-quarters of their value so far.
The partnership will allow merchants to integrate their online stores with YouTube, reaching over two billion monthly users.
Shares of Shopify jumped more than 5% in New York.
Amir Kabbara, Shopify’s director of product, marketplaces and creators, said the partnership with YouTube would help boost conversion rate and in turn the gross merchandise volume, a key success metric for the company.
Merchants can tag products during live streams, show a curated list of products and add a store tab under their YouTube channel to feature their products.
The Canadian e-commerce giant is looking to tap into the growing number of content creators launching their own e-commerce stores.
In June, Shopify, which makes tools for merchants to set up online stores, launched new features to help its customers to sell to other businesses and on Twitter to counter a post-pandemic slowdown in online shopping.
Shopify, which has also partnered with TikTok, Meta Platform Inc’s (NASDAQ: META) Facebook and Instagram, said it saw orders placed through such partner integrations quadruple in the first quarter of 2022.
Picture Credit: Shopify
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