Shopify Collective: A New Tool for DTC Brands

Shopify Collective is a cross-selling tool that allows brands to offer complementary products from other Shopify merchants on their own websites. This feature, launched in July 2023, has been gaining traction among direct-to-consumer (DTC) brands looking to expand their product offerings and increase revenue.

How Does Shopify Collective Work?

• Product Discovery: Brands can browse a curated selection of products from other Shopify merchants.
• Product Selection: Brands can choose products that complement their own offerings and align with their target audience.
• Integration: Selected products are seamlessly integrated into the brand’s website, appearing as recommended or related items.
• Fulfillment: When a customer purchases a recommended product, it is fulfilled and shipped directly from the partner merchant.

Benefits for DTC Brands

• Expanded Product Range: Offer a wider variety of products without increasing inventory or fulfillment costs.
• Increased Revenue: Drive additional sales by cross-selling complementary products.
• Enhanced Customer Experience: Provide customers with a more convenient and personalized shopping experience.
• Strengthened Partnerships: Build relationships with other Shopify merchants and potentially collaborate on future projects.

Example: A brand that sells athletic wear might use Shopify Collective to offer complementary products like sports nutrition or workout accessories. This helps customers complete their shopping needs in one place and increases the brand’s overall revenue.

While Shopify Collective is still a relatively new tool, it has the potential to significantly impact the way DTC brands operate. By leveraging this platform, brands can expand their reach, increase revenue, and provide a more valuable shopping experience for their customers.