YouTube seeks to topple TikTok as video shopping king

Two in five Southeast Asian shoppers turn to online videos to research products.

YouTube has teamed up with Shopee to let creators in Singapore earn money by promoting Shopee products in their videos to drive sales, as the tandem tries to unseat TikTok as the region’s video shopping leader.

The YouTube Shopping Affiliate Program aims to tap into the growing popularity of video-led commerce in Southeast Asia, where two in five shoppers now turn to online videos to research products, according to Ajay Vidyasagar, managing director at YouTube Southeast Asia and Emerging Markets.

“Creators can feature their own products like merch in videos and livestreams or feature products from other brands in videos, shorts, and livestreams,” he told Retail Asia in a video interview.

The partnership, which is also available in Indonesia, Vietnam, Malaysia and Thailand, pits the Silicon Valley tech giant against TikTok Shop, which dominates video e-commerce in Southeast Asia.

YouTube channels in Singapore with more than a million subscribers stood at 170 as of December 2024, whilst about 1,300 channels had at least 100,000 subscribers, according to data released by Google Singapore in June.

The number of creators with a five-digit monthly income in Singapore dollars rose 20% from a year earlier.

“In Singapore specifically, 62% of people watch a YouTube video and then they want to buy something from an e-commerce platform,” Chua Kel Jin, director at Shopee Singapore, said in the same interview.

Chua said the partnership gives sellers access to new customers.

“Through Shopee’s infrastructure, including easy checkout, secure payments, and reliable delivery, sellers can ensure a smooth path from discovery to purchase, boosting both engagement and conversion rates,” he said.

Before, sellers had to pay expensive one-time fees to work with content creators. Under the program, they only pay a commission based on sales, improving return on investment.

Product categories such as beauty, fashion, electronics, and wellness are expected to benefit the most.

Chua noted that tutorials and reviews help build trust, styling sessions and hauls attract fashion-forward consumers, and demos and unboxing videos help shoppers make informed decisions.

Small businesses can also take advantage of Shopee’s Affiliate Marketing Solution, which lets them collaborate with creators, he added.

The number of daily unique livestreamers on Shopee grew over 50%, whilst livestream buyers increased 15% in the third  quarter of last year from a quarter earlier, Chua said. Shopee Live also posted a 3.5 times year-on-year increase in gross merchandise value in 2024.

“In Indonesia, YouTube-attributed orders have grown by more than six times within months of launch, demonstrating the synergy between engaging video content and Shopee’s seamless checkout experience,” he said. “In Singapore, “home and living brandHomey now drives over 50% of its sales through Shopee Live.”

Chua said the number of video influencers in Singapore focused on retail grew 18% from 2022 to 2024.

Vidyasagar said YouTube’s creator ecosystem has proven to be a strong driver of retail performance. “Creators are trusted advisors to fans who seek them out to discover, learn, or even listen for advice.”

“An Ipsos survey found that online users are 98% more likely to trust the recommendations of creators on YouTube compared with those on other social sites or apps,” he added.

He said ads that appear next to or within a creator’s content yielded 1.23 times higher research and consideration, 1.42 times higher loyalty, and 1.3 times higher advocacy.

“This partnership brings together the strengths of both platforms to unlock new value in content-driven commerce,” Chua said.