Woman looking at a computer screen with the YouTube logo above a "shop now" button
Photo: Canva

Fashion site Glossy shares how YouTube is pushing forward with video shopping in the wake of Instagram reducing its shopping features and TikTok increasing theirs with a new Shopping Center.

On June 14, according to Glossy, “YouTube announced the official launch of its affiliate program for any creator with 20,000 subscribers or more.” The head of shopping content partnerships at YouTube, Bridget Dolan, said that the program’s beta tests have been “going really well” since the end of last year with retailers like Ulta Beauty and Sephora. The platform has also been promoting its “Shoppable Shorts” feature, which launched last November and has already been adopted by brands like Glossier and Fenty Beauty.

This new program capitalizes on influencer monetization features that have been unveiled over the past year. The question on everyone’s mind: How will YouTube succeed where Meta failed?

As reported by TechCrunch, Meta shut down livestream capabilities on Instagram and Facebook as of March 2023. Meta’s efforts are now concentrated on advertising and “the use of its automated tools like Shop ads and Advantage+ shopping campaigns aimed at helping improve ad performance.” TechCrunch also notes that the company plans to continue investing in checkout, “where people can buy a product in just a few taps from Instagram and Facebook Stories, Feed or Reels.”

Allowing content creators to sell directly to their audiences is nothing new, but YouTube aims to make it as seamless and frictionless as possible.

The general method video creators have always used to promote products involves asking their viewers to use affiliate links in the video’s description. However, this method often led to problems, such as “products being out of stock or viewers finding it cumbersome to navigate away from the video to access the desired information,” according to Glossy.

In order to overcome these challenges, “YouTube’s revamped affiliate program introduces a ‘view products’ button that allows viewers to access a panel within the video itself. This panel displays product images, prices and retailers where they can be purchased, eliminating the need for viewers to leave the video and search elsewhere.”

YouTube is also partnering with Shopify, according to TechCrunch, so that creators and merchants alike can feature products on their channels. “With this partnership, creators who link their stores can display their products across their channel and leverage Shopify’s real-time inventory syncing. Creators in the United States can now enable onsite checkout to allow viewers to complete their purchases without leaving YouTube.”

ZDNET adds that “creators connected with Shopify or Google Merchant Center can set up YouTube Product Drops from YouTube’s Live Control Room.”

The final aspect of the new formula allows creators to “schedule their product release within YouTube Studio and control the date and time a product goes live. So, creators can keep their product drop a secret and manufacture anticipation around a new product,” according to ZDNET.

Live shopping is currently thriving in China, where viewers watch their favorite influencers model and showcase products. It’s a phenomenon that takes the concept of yesteryear’s broadcast of QVC television to the masses. Users are participating in China’s social media apps with the ability to buy directly from their apps live, while in the U.S., social platforms require users to leave the livestream and redirect them to another webpage to make purchases.

For example, the New York Times reports how star streamers in China have become celebrities. “The most famous, including Li Jiaqi — whose prowess at trying on and pitching makeup products earned him the nickname ‘lipstick king’ — are able to attract tens of millions of viewers per session.” Additionally, “Kim Kardashian once appeared with another top Chinese streamer, Viya, to promote her perfume in China, selling 15,000 bottles within minutes.”

Only time will tell if YouTube Shopping in the U.S. will be able to take off in the same way.

BrainTrust

“In addition to the tech adoption gaps and the seeming lack of willingness to consume this kind of shopping content, the influencers here really do need to up their game…”

Nikki Baird

VP of Strategy, Aptos


“The key is not to duplicate the China Experience but to personalize and humanize the ecommerce experience through the strategic use of live video.”

John Lietsch

Chief Operating Officer, Bloo Kanoo


“As good as YouTube might be, it is nowhere near the level of Chinese super-apps like WeChat. Live shopping is much more underwhelming and sedate in the US…”

Neil Saunders

Managing Director, GlobalData

Discussion Questions

DISCUSSION QUESTIONS: Will YouTube be able to revolutionize live shopping experiences for users? Do you foresee any other challenges and obstacles to live shopping?

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Do you think YouTube will surpass China’s success with live shopping?

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9 responses to “Can YouTube Shopping Emulate China’s Live Shopping?”

  1. Neil Saunders Avatar
    Neil Saunders

    Live shopping is big business in China. While growing, if you exclude the original live-streamers of QVC and the other shopping channels, it is comparatively small in the US. YouTube is probably right to cash in on the growth, but I doubt it will transform the way Americans shop. The strength of China’s market is driven by a host of factors – both cultural and technological. On the technology side, most of China’s livestream events are held on platforms that have integrated services from payment to logistics; this makes it very easy for consumers to buy things. As good as YouTube might be, it is nowhere near the level of Chinese super-apps like WeChat. Culturally, livestream shopping is a big event for Chinese shoppers who are pulled in to be entertained, to get great bargains, to see new product launches, and so forth. Live shopping is much more underwhelming and sedate in the US and just doesn’t have the same pulling power.

  2. Nikki Baird Avatar
    Nikki Baird

    I try really hard to get excited about live shopping in North America, but I just can’t. It was a perfect storm in China, especially with consumers’ tendencies around consuming mobile content, and we just haven’t seen the same conditions emerge on this side of the Pacific. In addition to the tech adoption gaps and the seeming lack of willingness to consume this kind of shopping content, the influencers here really do need to up their game to approach anything as entertaining or engaging. Just see how well (or not) it has worked out for Amazon’s live shopping channel (did you even know they have one?) – it’s great to watch, if you’re experiencing insomnia.

  3. Joel Rubinson Avatar
    Joel Rubinson

    I am not familiar with practices in China or what Google is planning. However, as a consumer, what I would use would be influencers reviewing and comparing different brands of a product or service I want to buy, where the reviews are searchable and links are embedded. I could imagine a service like that with affiliate/referral links getting commissions. Adding on, each reviewer could have a patreon page where reviews could be requested (assumed for some contribution). (This happens with reaction videos on music, for example).

  4. John Lietsch Avatar
    John Lietsch

    Liveshopping originated in Asia, primarily China, around 2015 and Alibaba’s Taobao’s success is legendary in the space. However, duplicating the China experience isn’t entirely possible or cost effective in the US. YouTube’s challenge and that of the US is both platform and content oriented. There are several retailers successfully using livestream shopping and shoppable videoconferencing by offering them directly from their own ecommerce systems thus bypassing the challenges alluded to in the article and protecting their brand. The key is not to duplicate the China Experience but to personalize and humanize the ecommerce experience through the strategic use of live video. Remember, ecommerce never became the brick & mortal killer it was supposed to become and part of that reason is the lack of warmth as evidenced by our numerous attempts over the years to personalize it (e.g. product videos, you may also likes, reviews, etc.). Live video affords us a great opportunity if used well, as is the case for all new tech.

  5. Lisa Goller Avatar
    Lisa Goller

    YouTube is synonymous with video, pervasive and trusted, giving it a massive edge in live shopping. Seamless integrated payment and Shopify’s inventory syncing solve major pain points. Collaborating with mega-influencers in beauty will help YouTube steal eyeballs from TikTok.

    Female Gen Zs will be early adopters who make livestream shopping a new habit in Western markets.

  6. Gene Detroyer Avatar
    Gene Detroyer

    Perhaps, only Elon Musk understands the super app WeChat. It is not social media; it is integrated into everyone’s life. Only about 2% of people’s transactions are cash-based. Even the vegetable cart and the panhandler use AliPay or WeChat. You can tell who is a tourist when they hand over a 100¥ note to pay for something.

    The one advantage the U.S. has is the unlimited use of devices. China limits children under eight to no more than 40 minutes daily on mobile devices, while minors aged 16 to 18 are allowed up to two hours a day. (Exceptions for schooling.) Children can only spend an hour a day playing online games on Fridays, weekends, and public holidays.

  7. DeAnn Campbell Avatar
    DeAnn Campbell

    One of the reasons live-streaming has been effective in Asia is that products are sold in real time at a “only during the live-stream” discounted price. Plus most consumers in China are restricted in their access to social media so watching live is more of a draw. In the U.S. shoppers have become accustomed to an on-demand world – streaming shows, webinar replays, recorded Zoom calls, ads served up whenever one is browsing… While a small handful of influencers may command the power to entice a shopper to watch a live-streamed event (Taylor Swift comes to mind), most YouTube videos are not viewed live, some even weeks or months after filming. It will be challenging to create the same sense of urgency and limited time pricing for consumers post event.

    1. Gene Detroyer Avatar
      Gene Detroyer

      Other than the restrictions noted in my comments today, There are no serious questions about access. TikTok is alive and well. WeChat does everything on our social media sites all in one? Both with over a billion users. There are multiple other social media sites, including QQ, Douyin, and Weibo, all with over half a billion users. Plus, any of my students can tell you how to access restricted sites such as Facebook and YouTube.

  8. Kenneth Leung Avatar
    Kenneth Leung

    I think live shopping works in China because of the mobile culture and people have time on mass transit to browse and shop (people hopefully aren’t driving and doing live shopping in the US). It is much harder to replicate and convince people at home to watch influencers selling products for entertainment. For Youtube adjusting the platform to support it is one thing, for influencers to adjust their content to sell rather than drive viewership is another

9 Comments
oldest
newest
Neil Saunders
Neil Saunders
17 hours ago

Live shopping is big business in China. While growing, if you exclude the original live-streamers of QVC and the other shopping channels, it is comparatively small in the US. YouTube is probably right to cash in on the growth, but I doubt it will transform the way Americans shop. The strength of China’s market is driven by a host of factors – both cultural and technological. On the technology side, most of China’s livestream events are held on platforms that have integrated services from payment to logistics; this makes it very easy for consumers to buy things. As good as YouTube might be, it is nowhere near the level of Chinese super-apps like WeChat. Culturally, livestream shopping is a big event for Chinese shoppers who are pulled in to be entertained, to get great bargains, to see new product launches, and so forth. Live shopping is much more underwhelming and sedate in the US and just doesn’t have the same pulling power.

Nikki Baird
Nikki Baird
14 hours ago

I try really hard to get excited about live shopping in North America, but I just can’t. It was a perfect storm in China, especially with consumers’ tendencies around consuming mobile content, and we just haven’t seen the same conditions emerge on this side of the Pacific. In addition to the tech adoption gaps and the seeming lack of willingness to consume this kind of shopping content, the influencers here really do need to up their game to approach anything as entertaining or engaging. Just see how well (or not) it has worked out for Amazon’s live shopping channel (did you even know they have one?) – it’s great to watch, if you’re experiencing insomnia.

Joel Rubinson
Joel Rubinson
14 hours ago

I am not familiar with practices in China or what Google is planning. However, as a consumer, what I would use would be influencers reviewing and comparing different brands of a product or service I want to buy, where the reviews are searchable and links are embedded. I could imagine a service like that with affiliate/referral links getting commissions. Adding on, each reviewer could have a patreon page where reviews could be requested (assumed for some contribution). (This happens with reaction videos on music, for example).

John Lietsch
John Lietsch
13 hours ago

Liveshopping originated in Asia, primarily China, around 2015 and Alibaba’s Taobao’s success is legendary in the space. However, duplicating the China experience isn’t entirely possible or cost effective in the US. YouTube’s challenge and that of the US is both platform and content oriented. There are several retailers successfully using livestream shopping and shoppable videoconferencing by offering them directly from their own ecommerce systems thus bypassing the challenges alluded to in the article and protecting their brand. The key is not to duplicate the China Experience but to personalize and humanize the ecommerce experience through the strategic use of live video. Remember, ecommerce never became the brick & mortal killer it was supposed to become and part of that reason is the lack of warmth as evidenced by our numerous attempts over the years to personalize it (e.g. product videos, you may also likes, reviews, etc.). Live video affords us a great opportunity if used well, as is the case for all new tech.

Lisa Goller
Lisa Goller
13 hours ago

YouTube is synonymous with video, pervasive and trusted, giving it a massive edge in live shopping. Seamless integrated payment and Shopify’s inventory syncing solve major pain points. Collaborating with mega-influencers in beauty will help YouTube steal eyeballs from TikTok.

Female Gen Zs will be early adopters who make livestream shopping a new habit in Western markets.

Gene Detroyer
Gene Detroyer
13 hours ago

Perhaps, only Elon Musk understands the super app WeChat. It is not social media; it is integrated into everyone’s life. Only about 2% of people’s transactions are cash-based. Even the vegetable cart and the panhandler use AliPay or WeChat. You can tell who is a tourist when they hand over a 100¥ note to pay for something.

The one advantage the U.S. has is the unlimited use of devices. China limits children under eight to no more than 40 minutes daily on mobile devices, while minors aged 16 to 18 are allowed up to two hours a day. (Exceptions for schooling.) Children can only spend an hour a day playing online games on Fridays, weekends, and public holidays.

DeAnn Campbell
DeAnn Campbell
13 hours ago

One of the reasons live-streaming has been effective in Asia is that products are sold in real time at a “only during the live-stream” discounted price. Plus most consumers in China are restricted in their access to social media so watching live is more of a draw. In the U.S. shoppers have become accustomed to an on-demand world – streaming shows, webinar replays, recorded Zoom calls, ads served up whenever one is browsing… While a small handful of influencers may command the power to entice a shopper to watch a live-streamed event (Taylor Swift comes to mind), most YouTube videos are not viewed live, some even weeks or months after filming. It will be challenging to create the same sense of urgency and limited time pricing for consumers post event.

Gene Detroyer
Gene Detroyer
  DeAnn Campbell
6 hours ago

Other than the restrictions noted in my comments today, There are no serious questions about access. TikTok is alive and well. WeChat does everything on our social media sites all in one? Both with over a billion users. There are multiple other social media sites, including QQ, Douyin, and Weibo, all with over half a billion users. Plus, any of my students can tell you how to access restricted sites such as Facebook and YouTube.

Kenneth Leung
Kenneth Leung
7 hours ago

I think live shopping works in China because of the mobile culture and people have time on mass transit to browse and shop (people hopefully aren’t driving and doing live shopping in the US). It is much harder to replicate and convince people at home to watch influencers selling products for entertainment. For Youtube adjusting the platform to support it is one thing, for influencers to adjust their content to sell rather than drive viewership is another