Shopify (SHOP) Partners With YouTube to Boost E-Commerce Sales - Nasdaq

Summary

Shopify SHOP recently announced that it has partnered with Alphabet GOOGL division YouTube to enable merchants to sell through the video platform. Shopify intends to tap the growing number of content creators who influence consumer buying patterns significantly.

Shopify’s recent partnership with YouTube is built upon an already existing one with Google. SHOP has already integrated its local inventory data with Google features, which allows customers to know when a particular product is available.

Shopify SHOP recently announced that it has partnered with Alphabet GOOGL division YouTube to enable merchants to sell through the video platform. Shopify intends to tap the growing number of content creators who influence consumer buying patterns significantly.

Shopify’s recent partnership with YouTube is built upon an already existing one with Google. SHOP has already integrated its local inventory data with Google features, which allows customers to know when a particular product is available.

With the launch of YouTube Shopping on Shopify, merchants can integrate their online stores with one of the biggest entertainment platforms. This will enable merchants and content creators who have launched their own products to access a huge pool of potential customers.

Merchants can not only tag and pin their products during live video streams but also pre-record videos showcasing a curated list of products linked with the on-demand videos. They can also add a store tab under the YouTube channels to feature their products.

Commerce is currently a multichannel event, and YouTube is one of the most influential channels worldwide. Brands are trying to create meaningful engagement with consumers, which puts content at the center of brand interactions. Content creators are now openly selling goods and building their own brands or affiliating themselves with existing ones to sell products to customers using D2C channels.

Shopify Inc. Price and Consensus

Shopify Inc. price-consensus-chart | Shopify Inc. Quote

Will the Deal Drive Shopify’s Share Price?

Shopify’s e-commerce business boomed during the COVID-19-induced pandemic as global brands and small stores set up online platforms to sell products due to retail markets closing down.

However, once the economy opened and retail stores started winning back their lost customers, Shopify lost its momentum. Inflation and possible signs of recession have aggravated the current market scenario, which in turn slowed down growth in the e-commerce market.

As a result, investors are currently wary of the future growth of the company. Shopify’s stock plunged 78.1% compared with the Zacks Internet Services industry’s decline of 18.4% in the year-to-date period.

The company is facing increasing competition from another e-commerce giant Amazon AMZN.

With the potential and changing dynamics in the global e-commerce sector with creators influencing the rapid growth of D2C channels, Amazon has been stepping up its efforts as well to attract more influencers to its e-commerce platform by offering signing bonuses and vacations.

To counter rising competition and current macro-economic turmoil, Shopify has been investing heavily in building strategic integrations with major tech companies to provide new services, like the Twitter TWTR sales channel, Apple’s iPhone tap-to-pay feature and Alphabet.

The Twitter sales channel enables merchants to connect with consumers directly from their Twitter profiles. Shopify noted that it was the first time a commerce platform has partnered with a social media company.

The recent integration with Apple enables shoppers to use Apple smartphones against the terminal to pay for goods. While this may not be a new feature in retail but Apple’s recent Pay Later installments added a whole new dimension to retail marketing.

Although the short-term growth prospects look bleak for the company under the current market scenario, the recent integration with YouTube will help it generate new revenue sources in the long haul, thus impacting revenue growth positively.

Shopify currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Shopify (SHOP) Partners With YouTube to Boost E-Commerce Sales - Nasdaq
Photo Credit: Nasdaq

Shopify: Bull vs. Bear - The Motley Fool

In this podcast, Motley Fool senior analyst Jason Moser discusses topics including: Nvidia NVDA 4.28% ) Why Nvidia's long-term thesis appears to be intact. A listener's question …

Read more here
Shopify: Bull vs. Bear - The Motley Fool

DEV.co Redesigns Shave.net Website, Transitioning the Classic Shaving Site from Shopify to Wordpress - goskagit.com

Country United States of America US Virgin Islands United States Minor Outlying Islands Canada Mexico, United Mexican States Bahamas, Commonwealth of the Cuba, Republic of Dominic …

Read more here
DEV.co Redesigns Shave.net Website, Transitioning the Classic Shaving Site from Shopify to Wordpress - goskagit.com

Cloudinary App for Shopify Automates Media Optimization to Supercharge Conversions and Revenue - AiThority

The New Integration Adds Intelligent Automation to Media Workflows to Help Shopify Merchants Deliver Engaging Customer Experiences Faster and More Efficiently Cloudinary, the Medi …

Read more here
Cloudinary App for Shopify Automates Media Optimization to Supercharge Conversions and Revenue - AiThority

2 Beaten-Down Growth Stocks You'll Be Happy You Own in 2032 - The Motley Fool Canada

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to, and more. Learn more High infl …

Read more here
2 Beaten-Down Growth Stocks You'll Be Happy You Own in 2032 - The Motley Fool Canada

Shopify Review | HTMLGoodies.com - HTML Goodies

Is Shopify the ideal e-commerce platform for you and your online store? We will help you figure that out in this review that will break down Shopify’s pros and cons, features, and …

Read more here
Shopify Review | HTMLGoodies.com - HTML Goodies