Google, YouTube and Shopify - What does it mean?

By Veronica Jeans, Ecommerce Queen

Shopify is reportedly working on an integration with YouTube that could see the video-sharing platform become an e-commerce hub for its parent company Google.

Here's how it will work:

1. Shopify and YouTube are currently testing out a new integration that would allow for products to be sold directly through YouTube, according to Bloomberg. The US publication reported that YouTube has been asking some of its creators to test out the offering, with data being linked to analytics and shopping tools from Google.

2. Google, itself, has had an ongoing partnership with Shopify as it looks to push further into the lucrative e-commerce market. Earlier this year, the two companies expanded on an existing integration, allowing Shopify merchants to list products on Google Shopping for free.

Every toy, gadget and good you see on YouTube could soon be for sale online -- not on Amazon, but right on YouTube itself.

3. The world’s largest video site recently started asking creators to use YouTube software to tag and track products featured in their clips. The data will then be linked to analytics and shopping tools from parent Google.

What's the Goal?

The goal is to convert YouTube’s bounty of videos into a vast catalog of items that viewers can peruse, click on and buy directly, according to people familiar with the situation. The company is also testing a new integration with Shopify Inc. for selling items through YouTube.

A YouTube spokesperson confirmed the company is testing these features with a limited number of video channels. Creators will have control over the products that are displayed, the spokesperson said. The company described this as an experiment and declined to share more details.

The moves have the potential to transform YouTube from an advertising giant into a new contender for e-commerce leaders such as Amazon.com Inc. and Alibaba Group Holding Ltd.

What are your thoughts on this integration?