WSJ: BuzzFeed starts selling products directly to consumers

"BuzzFeed has long recommended products to its audience, earning a cut of the revenue when readers click the links in its articles and buy from the sites that actually sell the goods.

The digital publisher has now introduced a standalone website called BuzzFeed Shopping that lets visitors complete purchases without going anywhere else.

Many publishers earn so-called affiliate revenue, the slice of revenue they get when they help generate a sale, by linking from product mentions to retailers that finish the transactions. But shopping directly on media sites may become more common as consumer habits change and publishers continue to seek revenue beyond ad sales.

BuzzFeed’s move was enabled partly by the relatively recent spread of checkout functionality beyond traditional e-commerce platforms to a range of websites and apps, said Nilla Ali, senior vice president of commerce at BuzzFeed, citing shopping on Instagram in particular.

People weren’t inclined to shop outside traditional e-commerce sites just two years ago, Ms. Ali said. “But now with Instagram’s native checkout, and more influencers pushing products through their feed, consumer behavior has shifted,” she said.

The new BuzzFeed Shopping site, which is distinct from the Shopping section on BuzzFeed’s main site, executes transactions through a partnership with Shop Bonsai Inc., an e-commerce platform that connects publishers and brands.

The BuzzFeed Shopping rollout describes products for sale such as a face mask from Message Me Inc.’s HipDot and face cream from Elf Cosmetics Inc.

BuzzFeed earns an average commission of 25% on direct sales, it said. Bonsai receives a portion of that commission, but the companies declined to disclose its size. BuzzFeed declined to describe its commissions from affiliate links."

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