In the ever-changing landscape of social commerce, YouTube and TikTok are two dominant platforms competing to help creators monetize their content while driving brand sales. Both platforms have introduced various shopping features to stay competitive, and with YouTube's recent expansion of shopping tools, the rivalry has reached new heights.
But what exactly do these platforms offer when it comes to social commerce? Let’s break down what YouTube Shopping and TikTok Shop are, and how YouTube’s new features position it to compete even more directly with TikTok.
What is YouTube Shopping?
YouTube Shopping allows creators to integrate e-commerce directly into their content, enabling their audience to shop products featured in videos without leaving the platform. By incorporating shoppable links, product collections, and affiliate marketing tools, YouTube creators have the opportunity to monetize their videos in new ways, driving product sales while engaging their audience with relatable content.
YouTube Shopping features include:
- Shoppable product links in videos: Creators can tag products in their videos, allowing viewers to easily purchase items directly from YouTube.
- Merch shelf integration: For creators who sell their own merchandise, YouTube allows for seamless integration into the video experience.
- Affiliate Hub and Shopping Collections: YouTube has further improved its commerce tools, with the introduction of more affiliate partnerships and ways for creators to group products into curated collections.
What is TikTok Shop?
TikTok Shop is TikTok’s social commerce feature that allows creators to directly sell products through their content. Launched in 2022, TikTok Shop has quickly grown in popularity, especially with the younger Gen Z audience. Creators can promote items in their videos, livestreams, and profiles, giving their viewers an opportunity to shop without leaving the app.
Key features of TikTok Shop:
- Product links and live shopping: TikTok allows creators to tag products in both videos and live streams, encouraging instant purchases.
- Brand collaborations and creator marketplace: TikTok provides a robust platform for creators to collaborate with brands for sponsored content and affiliate marketing.
- Massive growth projections: TikTok Shop is expected to grow its business tenfold this year, showing its fast adoption as a major player in social commerce.
YouTube’s New Shopping Features in 2024
This year, YouTube announced a suite of updates aimed at making it easier for creators to monetize their content and take part in the growing social commerce market. These updates are designed to help creators further integrate shoppable products into their content while increasing flexibility.
Key new features include:
- Shopping Collections: Creators can now group products into themed collections that appear on their Store tab, product lists, and video descriptions. For example, a beauty influencer could create a “Summer Skincare Essentials” collection, making it easier for viewers to shop multiple products at once.
- Affiliate Hub: YouTube’s new Affiliate Hub gives creators access to over 300 partner brands, such as Target, Ulta, and Adidas. This hub allows creators to track their commissions, request product samples, and access promo codes. The affiliate marketing tools provide a streamlined way for creators to work with brands and monetize their content through product recommendations.
- Product Tagging Across Multiple Videos: Creators now have the ability to tag products in older content, allowing them to breathe new life into their video library and generate ongoing revenue from their previously published videos.
- Fourthwall Integration: In collaboration with Fourthwall, a web platform for creators, YouTube has enhanced its merch-selling capabilities, providing creators with more options to manage their online stores.
YouTube vs. TikTok: How Creators Can Use These Platforms
Both YouTube and TikTok offer creators substantial opportunities to monetize through shopping, but they cater to different strengths.
On YouTube, the shopping experience is more built into longer-form content, which benefits creators who focus on in-depth tutorials, product reviews, or lifestyle vlogs. Creators on YouTube can take advantage of:
- Affiliate marketing: YouTube’s Affiliate Hub allows creators to build direct relationships with brands and earn commissions on product sales.
- Seamless integration with Shopify: YouTube’s ongoing partnership with Shopify enables creators to integrate their Shopify stores directly into their channels, giving them complete control over their online sales and merchandising.
- Repurposing older content: YouTube’s ability to monetize older videos through product tagging is a standout feature, making evergreen content even more valuable.
On TikTok, the shopping experience is built around short-form, viral content, with the platform’s algorithm helping to surface popular videos quickly. The focus here is more on instant, impulse purchases, often driven by:
- Live shopping events: Creators can host live streams where they showcase and sell products in real-time.
- Product recommendations: TikTok creators often promote trending products through short, engaging clips that appeal to the younger, fast-moving audience.
YouTube’s Partnership with Shopify: Expanding Brand Collaboration
One of the biggest moves YouTube made to bolster its social commerce features was expanding its partnership with Shopify. This collaboration makes it easier for creators to onboard more brands into YouTube’s Affiliate Program and connect directly with Shopify stores.
Through this partnership, creators can:
- Create fully integrated stores on their YouTube channels, giving them more control over branding and product management.
- Diversify their income streams by selling both physical and digital products directly to their audience without needing a third-party platform.
- Scale their business by leveraging Shopify’s tools for inventory management, marketing, and customer support.
For brands, this partnership also provides a broader reach by tapping into YouTube’s massive user base, especially now that the platform has 2 billion logged-in monthly users. The affiliate marketing potential of YouTube Shopping is vast, allowing brands to reach an audience ready to engage with shoppable content.
The Broader Social Commerce Landscape
While both YouTube and TikTok are making major moves in the social commerce space, they are part of a much larger trend. In 2020, social commerce sales in the United States reached nearly $27 billion. By 2023, that figure had grown to $67 billion and is expected to exceed $144 billion by 2027.
Much of this growth is driven by younger generations who are increasingly making purchases through social media platforms. Gen Z is leading the way, with 68% likely to make purchases on platforms like TikTok and YouTube.
However, YouTube still holds a slight edge in terms of reach across all U.S. adults. While TikTok might be leading with Gen Z, YouTube boasts a wider appeal, with 46% of U.S. adults indicating they are likely to shop on YouTube versus 39% for TikTok.
The Future of Social Commerce: YouTube’s Strategic Vision
YouTube’s new updates and partnerships show that the platform is serious about becoming a major player in the social commerce space. By giving creators more flexibility in how they integrate shopping features, YouTube is empowering them to drive sales while keeping their content authentic.
As YouTube continues to develop its affiliate marketing tools and expand partnerships with platforms like Shopify, creators can expect even more opportunities to monetize their content. While TikTok may have captured the younger audience with its viral shopping experiences, YouTube is doubling down on its strengths — longer-form content, in-depth product showcases, and a diverse, highly engaged audience.
In the end, creators who leverage both platforms stand to gain the most. TikTok’s fast-paced, viral nature can complement YouTube’s more in-depth and evergreen content, allowing creators to “double dip” by reaching different types of shoppers across platforms. As social commerce continues to grow, YouTube’s latest features will ensure that it remains a key player in the space.
