Simplifying Connections and Boosting Sales: Shopify Collabs Network Empowers Creators and Merchants

In today’s digital age, the influencer or creator serves as the vital bridge between consumers and brands or retailers, as stated in the PYMNTS. According to insights from LTK (previously known as Like To Know It), Gen Z women primarily turn to TikTok, creators, and friends for fashion inspiration, while creators hold the highest influence for beauty inspiration among Gen Z individuals. With growing trust in creators across age groups, consumers are increasingly using creators’ affiliate links for online purchases, with Gen Z leading at 75% and millennials at 67%. This trend highlights the significant influence of social media platforms on consumers’ shopping choices.

Recognizing the power of creators and the need to streamline their collaboration with merchants, Shopify has launched the «Collabs Network» feature. This free application allows all Shopify merchants to establish partnerships with creators, driving customer acquisition and boosting sales. Simultaneously, creators gain the opportunity to explore product options and connect with brands and retailers. Through Collabs Network, creators can navigate specific categories, such as yoga and beauty, and gain insights into the brands their followers are purchasing from. Brands, on the other hand, can identify the creators generating the highest sales. The application also enables brands to acquire affiliate links without the need for intermediaries or agencies typically involved in managing contractual arrangements. Collabs Network is an expansion of the Shopify Collabs app, which debuted in August.

In the current landscape, relevance is key for brands to establish a connection with consumers. To achieve this, brands and creators are adopting a more deliberate approach to collaborations. They are increasingly engaging with influencers who are experts in specific fields, such as doctors and specialized professionals, to provide educational value and foster relevancy. This shift is evident in the collaboration between Sydney Adams, a fitness influencer on TikTok, and 1 UP Nutrition, where they introduced a new protein powder. Rather than seeking out the most popular celebrity, they partnered with an influencer operating within the fitness space, staying true to their niche.

Financial empowerment for creators is another crucial aspect addressed by Collabs Network. Marie-Elise Droga, head of FinTech at Visa, emphasizes that creators are often underserved in their financial lives and form the fastest-growing category of SMBs globally. By collaborating directly with Shopify merchants, creators benefit from higher average commissions from product sales compared to other networks, with commissions surpassing the 10% threshold on average. Moreover, Collabs ensures creators receive their commission payments faster, aligned with retailers’ return periods.

To join the Collabs Network, creators must have a minimum of 1,000 followers and be located in an area where a merchant is actively selling products. For merchants, the tool assists with creator management and selection, allowing them to establish specific criteria when choosing collaboration partners. Shopify applies a transaction processing fee of 2.9% on merchants to cover costs associated with its automatic payments feature via Shopify Billing.

In order to support creators in developing their businesses and capitalizing on viral moments, accessible working capital and financing are crucial. Visa, for instance, has a dedicated team focused on understanding and developing solutions for creators and social platforms. This support is designed to help creators grow their business from a mere hobby to a sustainable small business.

Shopify’s Collabs Network not only simplifies connections between creators and merchants but also empowers creators to generate income more quickly and efficiently. By leveraging the influence of creators and fostering relevancy, brands can successfully engage with consumers in the digital era.