It appears that both Google, through YouTube and Walmart are approaching the idea of live stream shopping, each from a different angle.
YouTube has disclosed plans to turn its large video platform into a shopping venue. It’s already used as one of the largest how-to and influencer lead marketing platforms so it’s only natural that they would consider it.
Why does YouTube live shopping make sense?
Video is big in ecommerce and live video is going to be even bigger. With its following Shopify integration, YouTube will simplify video-lead purchases.
What are the cons?
YouTube is an advertising powered platform. Simply put – it’s pay to play. Let’s say Sephora wants to market their products through YouTube. They would use influencers or their own associates. This leads towards the question – who owns the data? Not the buyer data, which will have to end up with Sephora, so they could at least fulfil the orders but the visitor data. This sits with Youtube/Google. This might have worked 10 years ago but it’s a bit of a no-no with any rational retailer. It still is a great choice for small retailers and this makes Shopify a great choice as a partner.
Walmart buys a 7.5% stake into TikTok. Why?
Oracle and Walmart have received the “blessing” for a 20% acquisition into the hottest media discovery app / social tool TikTok. It kind of makes sense for Walmart to do it but why Walmart? Are they trying to reach an younger audience and look dope?
They want to get into live shopping. They’ve previously missed the wagon on a few ecommerce opportunities that took them a decade to get back. Now they’ve noticed the live stream shopping trend in Chine, see the need for it in the North Americas, especially US, and want onboard.
Why it makes sense for Walmart to go into Live Shopping?
Well.. duh. They are the largest retailer in the US, see a great change happening and want on board. Appealing to younger generations is a great plus. But …
What are the cons of Walmart buying into TikTok?
Walmart, as all large companies are very hard to steer. They are a behemoth of a company that takes decades to move. Yes, when they do, they crush opposition, mostly given their logistics supply chain and distribution, which is unbeatable.
Yes, they have amazing staff with amazing ideas (which the TikTok shares purchasing is). But this is still the company that beat Amazon to the ecommerce launch only to forget about the whole ecommerce thing for 10 years, because “that’s not where our customer base is”. So … You might not get a Walmart Live soon.