YouTube vs TikTok Heating Up | Shopify Dropshipping Opportunity 2022

This is an era where brands and businesses are moving towards the latest techniques to penetrate the market. Vision is the most dominant sense and video content is one of the most versatile digital promoting tools out there. In the past few years, the growth of video content is phenomenal and the avid commercial growth through video content on social media is evident. 


YouTube had been dominating the online video space since its launch in 2005, with over two billion monthly users and an expanding community of creators. However, TikTok entered the market in 2017 and created a great explosion of short videos on social media that is greatly catching the attention of viewers more than any other content format.


October 2020 Shopify TikTok announced a partnership with Shopify and later launched the shopping feature which is accessible directly on the TikTok platform – TikTok Shop, it lets merchants, and creators display and sell products directly on TikTok. Sellers and creators can sell products through in-feed videos, LIVEs, and the product showcase tab.

This move of TikTok is undoubtedly an innovation of the organic combination of video-sharing social media and eCommerce. So maybe it’s to cope with the competition while benefiting creators on the platform, YouTube also announced a partnership with Shopify in July 2022.


YouTube: No more “links in the description” 


With the new integration, your content can now engage even the laziest buyers as your products can be showcased in multiple places in your channel now:


  • Your channel’s store

  • End screens

  • Product section below your videos and live streams

  • As the pinned product in live streams

Official info about showcase products from your store on YouTube

At present, viewers in 28 countries such as the States, the UK, Singapore, Japan, Brazil, etc. can see the product displayed and purchase it on YouTube.

How to connect Shopify store with Youtube


To link your Shopify store to your YouTube channel is not as simple as a one-click process but it’s not complex at all.


Step1 Sign in to YouTube Studio, select Monetization in the left menu


Step2 Click the Shopping tab (this tab will only show up when your channel is eligible)


Step3 Click get started and select Shopify 


Step4 Go to Shopify and add the Google Channel app to your store and complete the setup


Step5 Go to your Shopify admin page, Settings > Apps and sales channels > select Google



Step6 From the Google Channel app, click Overview > YouTube Shopping > Get Started


Step7 Select the YouTube channel that you’d like to connect to Shopify


Step8 Click Complete setup


After these 8 steps, your products will be vetted by YouTube which typically takes a few business days. Once approved, your products will show up in the YouTube Studio.


Notice: If you have multiple YouTube channels under the same email address, they will all appear in the list, make sure that you’re selecting the correct one to connect to.


There is also an in-page payment function, providing a more seamless shopping experience, however it is currently only on trial in the States. Creators in the US can enable onsite checkout so that viewers can complete the purchase without leaving YouTube. 


Official info about Connect, manage, & disconnect your store on YouTube


YouTube vs. TikTok which is better?


There’s no doubt that video content shows great ROI and boosts conversions and sales better. 


According to the latest research by data.ai, TikTok’s average monthly usage time per household reached 23.6 hours in Q1 of this year, surpassing YouTube’s 23.2 hours for the first time, meaning that TikTok users spend an average of 47 minutes a day on the platform.

So if you want to sell your products on the video-sharing platform, which one of the two industry giants is the better choice for you? YouTube or TikTok?


Content Type Differences:


TikTok favors fun, unserious, and trendy content types such as musicals, dance, sports, humorous videos, and a variety of challenges.


YouTube has a rich blend of different content types ranging from business to social to serious to casual. However, tutorials are definitely a major part of the YuTube content world.


Today’s life is too busy to have time to read long product descriptions or dig deep into services. YouTube is a place where people go for answers and tutorials, so if your products are gadgets or problem-solvers, you might be better off with YouTube, because video content is not only a great tool for learning but also a place that makes consuming persuasion super easy. Studies show that 74% of users who watched an explainer video about a product or service subsequently bought it.  


Entry Barriers:


TikTok:


There are 4 types of users who can use the TikTok shopping feature – creators, partners, affiliates, and sellers. However, if you are thinking of setting up TikTok Shops, you’re probably a seller. Sellers can head to the TikTok Seller Cente to sign up.


YouTube: 


This shopping feature is currently only available with eligible channels, and to become an eligible channel, you’ll have to have more than 4,000 valid watch hours in the last 12 months and more than 1,000 subscribers.


Check the more official info about eligible channels here


Although it seems like YouTube shopping has a higher entry barrier, considering its video length and recommendation algorithm, the engagement between YouTube’s audience and creators is in fact stronger, and the conversion rate is higher due to the more accurate recommendation.


Conclusion:


Even though creating videos is not yet the easiest or cheapest task, it pays off big time because it appears as the most effective element in the aspect of digital marketing. With the majority of consumers now using online videos for shopping research, it makes sense for YouTube to align with this shift, while also fending off another potential challenge from TikTok.


As for eCommerce sellers, you can expect this great opportunity for generating more revenue and supporting dropshipping businesses.

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