Shopify Inc. (NYSE:SHOP) and Twitter Inc. (NYSE:TWTR) have announced a partnership to make it simpler for customers to purchase goods Shopify merchants advertise on Twitter.
Twitter to allow Shopify merchants to display up to 50 items
According to the firms, Shopify sellers would be able to show and update automatically approximately 50 products for sale on a Twitter profile. Clicking on a product will take users to the seller’s website, where they can finish their purchase.
The Wall Street Journal reported that starting on Wednesday, many users shall have access to the service, which had been on a pilot with a select number of users.
The arrangement falls short of the functionality provided by rival platforms like Facebook and Instagram from Meta Platforms Inc., which let users purchase items without ever leaving the applications. According to a Twitter representative, the enterprises that Twitter polled desired to maintain control over the buying process.
The project is an attempt by both businesses to improve the so-called social-commerce services. Shopify, a platform that enables people to build online stores to offer their products, aims to provide retailers access to technologies that would encourage more social media buying. The Wall Street Journal indicated that Shopify and Twitter declined to disclose any financial information about their collaboration.
Social-commerce gaining traction
Most social media sites are starting to prioritize shopping as a feature since it increases engagement and boosts income. For instance, ByteDance’s TikTok charges a tiny commission on every sale made through its retail channel. Despite not charging any fees, Instagram and Facebook urge business clients to purchase “promoted” ads to increase their reach and attract customers.
Regarding social commerce, researchers claim that Twitter has lagged behind competitors like TikTok, Instagram, Facebook, and Snapchat. As a result, Shopify entrepreneurs are increasingly turning to social commerce as a source of sales. During the first quarter, companies utilizing Shopify’s platform reported product sales of $43.2 billion.
Investment firm Piper Sandler predicts that by 2027, the US social-commerce market will have grown to $168 billion, almost fourfold the $37 billion in sales witnessed in 2021. As per Piper Sandler, the Chinese sector, where retailers generated total social-commerce sales of $352 billion last year, is significantly larger than the US market.
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