Yahoo is the latest web giant to make a land grab within the retail sector with is acquisition of social shopping site Polyvore.
c.350 retailers sell through the Pinterest-like site, which allows shoppers and brands to post fashion products, like clothing or accessories, create outfits and share with others. Users shopping for outfits on the site can click on the individual products and buy them on one of 350 participating retailers’ sites.
This acquisition makes plenty of sense for Yahoo; it’s sites yahoo Style and Yahoo Beauty already feature many products that can be bought online. Combined, Yahoo can make money by including items posted to Polyvore as well as their e-commerce links. Additionally, Yahoo could exercise Polyvore’s technology and relationships with retailers such as Saks Fifth Avenue, Urban Outfitters and Nasty Gal to sell retailers and merchants on buying ads to promote their products on Yahoo’s sites, as well as on Poylvore. Furthermore, Polyvore could produce valuable data for Yahoo about shopping habits, which could be used to measure and improve brand’s ads.
Facebook and Google are also seeking a greater share of revenues from the retail sector. Facebook is allowing brands to launch shoppable pages on their profiles, meanwhile Google is allowing brands to add buy buttons to YouTube videos and search results.
Retailers are also testing their own social networks; Net-a-Porter is launching a Net Set app, where you can socialise and buy online.