Earlier this year, YouTube CEO Neal Mohan announced that the company is investing in making the platform a "shopping destination." The goal is for viewers to be able to purchase products recommended by creators, without leaving the app.
With the new collaboration between YouTube and Amazon, this could become a reality. YouTube creators in the USA, who are affiliated with both companies' partner programs, now have the opportunity to sell products directly in their videos.
The commission for sold products averages between 2 and 4 percent of the price. The amount is paid out by the video platform and added to regular advertising revenue.
However, if the customer returns the item at a later stage, the corresponding commission will be deducted from the creator's next payout.
A Controlled Assortment
The setup has certain limitations for creators, who cannot freely choose which links they want to include. Rene Ritchie, who works as a contact person for the platform's content creators, explains how they handle the selection of goods approved for sale.
Amazon provides YouTube with a curated catalog of in-demand and trending products, he says.
Those who lack a specific item on the list can submit a request to support, but there are no guarantees that it will be added. The companies are also looking at solutions for international viewers by referring them to local retailers. However, if the purchase is completed outside of Amazon's system, the creator will not receive a commission.
The companies' choice to limit the product catalog is linked to competition with platforms like TikTok Shop, where problems have arisen with unscrupulous sellers. This is written by Tubefilter.
By controlling the supply in advance, the platforms are trying to avoid that problem. According to the site, however, there is a risk that a narrow selection will lead to many creators marketing exactly the same viral articles.