When is a retail media network not a retail media network? When it’s Shopify’s Product Network, the newly-launched initiative that allows merchants to advertise their products in other merchants’ shopify storefronts.
The Network will allow Shopify merchants to fill specific inventory gaps without their own customers ever leaving their site. Products can be displayed dynamically, tailoring the experience to each brand and customer.
Merchants can decide which sellers to partner with, deciding where product placements show up, in search results, thank you pages, collections, emails or order status pages. They can also exclude competitors or categories that don’t fit the brand.
However, this advertising format is not a typical retail media approach. For one, merchants hosting these ads gain commission from each sale. The native environment may also mean it’s not immediately clear that some products are not sold directly from the shop owner’s brand.
The model is more akin to drop shipping in this respect and indeed, in reports surrounding the launch, the head of Shopify’s advertising business, Amanda Engelman, admitted its structure and purpose was “different” to standard networks.
