Top e-commerce platform Shopify launches a new service that aims to lure content publishers away from Amazon’s lure.
Along with its suite of online e-commerce tools for small to medium businesses and above, the Shopify network wants to allow digital content publishers to connect to its growing network of merchants. Those who do so will be rewarded with a cut from the resulting transaction proceeds.
The move, which is de facto affiliate marketing, sees Shopify aiming to lure publishers and retailers with the benefits of additional revenue, while also removing them from controlling control of Amazon or Walmart, which operate a similar scheme.
According to the information, Shopify is said to have reached out to several digital media companies such as Complex Networks and Vox Media in an effort to expand the network, having already recruited Buzzfeed.
The idea allows digital media publishers to build links from articles and other content that later take the reader to a range of products available within the Shopify network. There is a lot of potential for revenue generation, with over a million retailers residing on the e-commerce platform.
Adding more appeal to publishers is the way they can also choose to open their own Shopify online stores. This way, it will allow digital publishers to enjoy all the benefits of the Shopify ecosystem and businesses can deal directly with their customers without having to go outside of their website. Shopify will benefit if acquisition increases by generating additional sales in addition to getting the bonus of collecting more data on both sales and shoppers.
Amazon has enjoyed the lion’s share of the affiliate marketing revenue stream so far, with one publisher stating that more than 70% of its affiliate revenue comes from the company. However, Shopify is aggressively building its network and e-commerce platform and has managed to grow its revenue to $2.9 billion in 2020 amid the pandemic-themed online shopping demand.
While Amazon remains the dominant force in the e-commerce world, initiatives like this may entice digital publishers to try another angle. Shopify takes a monthly fee from merchants along with a deduction from every transaction that occurs on the ecommerce network.
However, Amazon is attractive to many because consumers are often already set up on their own network, thus simplifying purchasing power. However, Shopify may be tempting for many who want to resist using Amazon, or are looking for products that are only found within the Shopify network of merchants.