Merchants will pay creators an affiliate fee when a shopper buys products via a link from their social accounts. Ottawa-headquartered Shopify won’t take a cut of the payouts, Daniel Debow, vice-president of product, told The Logic. The new Collabs feature is available to merchants and influencers in the U.S. and Canada. (The Logic)
Talking point: Direct-to-consumer brands, Shopify’s traditional clientele, have watched the effectiveness of their online advertising erode, as Facebook and Instagram’s targeting methods weakened after Apple changed tracking on iOS devices. Influencer marketing offers an alternative—albeit much more fragmented—way to reach a similar audience. In April, Shopify announced the acquisition of Dovetale, a New York-based tool stores can use to link up with creators. Collabs works the other way too, letting influencers find brands whose products they can offer to advertise. TikTok and Instagram stars like Kylie Jenner and Addison Rae built their merchandising businesses using Shopify’s technology. In September 2020, the firm hired Jon Wexler, then running Kanye West’s Yeezy line at Adidas, to head its creator and influencer program; Wexler has since exited, joining Fanatics Collectibles in March. Meanwhile, Shopify co-led a US$30-million Series C round for San Francisco-based Gorgias, a platform that lets merchants manage customer service requests across apps.