Microsoft & Shopify Partnership: Listings on Bing, Edge & Start

Microsoft and Shopify Announce Strategic Partnership

Following a similar move by Google earlier in the year, Microsoft has revealed a collaboration with Shopify. This partnership will enable the platform’s extensive network of over 1.7 million merchants to connect with customers through Microsoft’s various services, including its search engine.

Expanding Product Visibility

The collaboration centers around expanding product selection across Microsoft Bing, the Shopping tab within the Microsoft Edge browser, and the recently introduced Microsoft Start news service. Merchants will gain increased visibility across these platforms.

This integration is facilitated through an updated Microsoft Channel app. Shopify merchants can utilize this app to refine their settings and broaden their reach within Microsoft’s ecosystem.

Free Product Listings

Once configured, merchants’ products will be displayed as free product listings on the Shopping tab in Bing, Microsoft Edge, and Microsoft Start. This offers a cost-effective way to increase product exposure.

Competitive Landscape and Advertising Revenue

Like Google, Microsoft’s advertising income could potentially be affected by the growth of Amazon’s advertising business. This has prompted both companies to seek strategies to maintain their market position.

Google's Response and the Shopping Graph

Google has been actively addressing this challenge by revitalizing its Google Shopping service. This was showcased at the Google I/O developer conference this spring.

A key component of this revamp is the “Shopping Graph”, designed to consolidate information from websites, price comparisons, and product data. The aim is to provide consumers with comprehensive information to facilitate informed purchasing decisions.

Last year, Google also made it free for merchants to list their products on Google, resulting in an 80% increase in merchant participation, with the majority being small and medium-sized businesses.

Microsoft's Growth and Amazon's Market Share

Microsoft has experienced growth in search advertising revenue in recent quarters, coinciding with the overall recovery of the advertising market. However, Amazon has been rapidly gaining market share.

In the first half of 2021, Amazon reported $14.82 billion in ad sales, representing an 82% increase year-over-year.

Shifting Consumer Behavior

As an increasing number of consumers initiate product searches directly on Amazon, bypassing traditional search engines and portals, the revenue of both Google and Microsoft could be impacted. A partnership with Shopify provides both tech companies with greater access to a wider range of online inventory.

This expanded inventory includes listings that may not be available on Amazon, enhancing their competitive offerings.

Shopify Integration Features

The Shopify integration with Microsoft will empower merchants to create new advertising campaigns and monitor marketing performance through real-time reports directly within their Shopify store. Microsoft has also indicated plans for further shopping enhancements, though specific details remain undisclosed.

Shopify's Expanding Partnerships

Microsoft represents one of several integrations Shopify has established in the past year. Recent collaborations include a partnership with Spotify, enabling artists to sell merchandise through their Spotify profiles, and ongoing work with TikTok to develop e-commerce experiences.