Google plans to turn YouTube into a major online shopping platform where you can buy what you see in the videos

Every toy, gadget and other item you see on YouTube could soon be for sale online – not on Amazon, but right on YouTube itself.

The world’s largest video site recently started asking creators to use YouTube software to tag and track products featured in their clips. The data will then be linked to analytics and shopping tools from parent Google.

COVID-19’s dramatic effects have led to a massive ecommerce boom — which is likely a major motivator behind Google’s latest investment in building out an ecommerce platform on YouTube.

According to Bloomberg Intelligence, there is a possibility for the ecommerce retail market to reach $2.8 trillion by 2025.

As consumers spend more time at home and rely on the ease of online shopping for their various needs, Google has the opportunity to step into the ecommerce ring and capitalize on growing sales and YouTube’s massive customer base.

While YouTube already holds a massive advertising presence, evolving the platform into an ecommerce hub opens the door for Google to become a leader in the world of ecommerce – competing against giants like Amazon – while offering its growing group of content creators additional revenue opportunities.

“YouTube is one of the least utilized assets [for ecommerce sales],” said Andy Ellwood, president of Basket, an ecommerce startup. “If they [Google] decided they want to invest in it [turning YouTube into an ecommerce platform], it’s a huge opportunity for them.”

Google has made several investments in its ecommerce strategy throughout recent years, launching initiatives like Google Shopping to “bridge the gap between consumers and products.”

Similarly, YouTube previously tested a Shopify integration with which content creators were able to post products for sale below their YouTube videos. Launching ecommerce offerings like Google Shopping, YouTube’s Shopify integration, and, now, possibly a YouTube ecommerce hub, provides Google and YouTube with valuable consumer data that can ultimately improve their advertising efforts in the long-run.

With ecommerce features added, YouTube will be utilized by digital advertisers as both a brand awareness channel and a sales channel, with attribution measurement based largely on sales volume.