E-commerce Platforms Emerge as New Influencer Hubs, Challenging Social Media Dominance

Online retail platforms such as Amazon India, Myntra, and Meesho are increasingly becoming go-to destinations for influencers, posing a challenge to social media giants like Instagram and YouTube. These e-commerce platforms are no longer limited to traditional affiliate programs; they now empower influencers and everyday users to create, publish, and livestream content directly within their applications. This evolution has fueled a multifold growth in affiliate marketing activities on these platforms over the past year. Myntra has observed a 240% increase in video content on its platform. As a result, creator commissions on sales generated through their recommendations have surged, with an estimated two lakh creators seeing their earnings double, especially during recent festive seasons. Amazon India's Influencer Program, established nearly a decade ago, has recently experienced significant traction, now comprising over one lakh creators. The platform provides tools for product recommendations, commission earning, and creator features. Daily livestreams averaging 45 demonstrate creators engaging customers with real-time product demonstrations and promotions, with tech, fashion, and beauty being top categories. Impact This trend significantly impacts the digital advertising and e-commerce sectors in India. It signals a shift in marketing spend and consumer engagement strategies, as major e-commerce players leverage influencers to drive sales directly on their platforms, potentially leading to increased competition for advertising revenue between social media and e-commerce companies. Investors focused on the digital economy and retail sectors should monitor this evolving landscape. Rating: 8/10

Heading: Difficult Terms and Meanings Affiliate marketing: A performance-based marketing strategy where a business rewards individuals (affiliates) for driving traffic or sales. For influencers, this means earning a commission on purchases made through their unique links or recommendations. Livestream: A live video broadcast over the internet, allowing real-time interaction between the broadcaster and viewers. NMV (Net Merchandise Value): A metric representing the total value of goods sold on an e-commerce platform before returns, cancellations, or other deductions. Social commerce: The practice of selling products and services directly through social media platforms, integrating shopping experiences within social feeds. Shopper-creators: Individuals who function both as consumers and content creators on e-commerce platforms, influencing purchasing decisions for themselves and others.