The Risks and Rewards of Embedded E-commerce in News Publishing

Monetization is one of the biggest obstacles an aspiring publisher has to overcome. Whether they are big or small, niche or wide-spread. Finding an effective way to make money from your viewership takes work. Some opt for a subscription model, while others try to keep their content free to view. Both of these have their pros and cons, which have been explored for a long time. But, there is a more modern monetization model that often flies under the radar. What we are referring to is embedding e-commerce in news content. If this interests you, let us explore the benefits and risks of embedded e-commerce in news publishing and whether this monetization model is suitable for your brand.

Understanding embedded e-commerce in news publishing

Embedded e-commerce means seamlessly integrating online shopping functionalities directly into the publisher's platform or content. By doing so, a publisher enables readers to purchase products or services without leaving the website or app. When implemented properly, this strategy leverages the trust and rapport that publishers have built with their audience to create a smooth shopping experience. If done really well, the e-commerce aspects can embellish the content and make it even more enjoyable to read.

How embedded E-commerce works in news publishing

This monetization option has different iterations. And depending on the news content, target demographic, and e-commerce needs, different iterations perform better. This is why publishers need to be aware of all of them.

Product recommendations in articles

The most straightforward way to embed e-commerce into news content is to simply integrate product recommendations, often through simple links. Sufficient to say that the more the product reflects the news content, the better. For instance, an article about sustainable living might feature links to eco-friendly products. An article about healthy food can include a food processor or even produce.

Interactive shopping widgets

A more modern option is to have people do the shopping without leaving the news page. To do this, publishers need only integrate the right widgets. These widgets allow readers to browse and purchase directly within the article or sidebar, providing a seamless experience. A great option is making use of shoppable stories, as they even provide room for product details and instructions.

Shoppable videos or images

While on the subject of shippable stories, it is also worth noting that shoppable videos and images are also a viable option. They can feature clickable hotspots that lead directly to a product page or checkout.

Affiliate marketing integration

If the news publisher doesn't run an e-commerce store, they can still make money from embedding e-commerce aspects. One option is to use affiliate links. Through them, they can earn a commission for every purchase. Ideally, the shopping journey should start and end on the publisher's site, increasing user retention. But, this can be difficult to put into practice.

Partnership with brands

The next, natural step in affiliate marketing would be to partner up with brands. If some brand has a natural connection with the news content you put out, it can be quite beneficial to partner up with them. For example, a news site focusing on sustainability might partner with eco-friendly brands, reinforcing its values while providing readers with curated shopping options. This opens up a multitude of ways in which you can monetize your content and improve viewership.

The rewards and risks

Now that we have a better understanding of what embedded e-commerce is we can take a more in-depth look into various risks and rewards. Of course, no monetization method is perfect for every brand. And the only way to mitigate them is to educate yourself and pick the right one for your brand.

Rewards of embedded e-commerce in news publishing

Let's start off with the obvious. Embedded e-commerce allows publishers to monetize content without relying entirely on traditional revenue streams like subscriptions or display ads. This diversification is particularly in the modern online landscape as ad-blockers and shifting consumer behaviors play a big role. With display ads, you constantly have to walk the fine line between not showcasing enough ads to earn money, and annoying your readers with too many ads. Meanwhile, with subscriptions you constantly have to put out quality content to give your readers a reason for staying subscribed. Well, embedded e-commerce allows you to avoid these headaches.

As we've shown earlier, publishers can use affiliate marketing links, curated product selections, or shoppable content, enabling them to earn a commission or a direct profit from sales.

Improved user experience

A less obvious benefit of embedding shopping opportunities directly into articles is that you reduce the friction in the buyer’s journey. For instance, a reader exploring a home decor article can immediately purchase a featured rug or lamp without navigating away. This integration aligns with the growing trend of instant gratification in online shopping and enhances reader satisfaction. Furthermore, it keeps readers glued to your content, thus ensuring their attention and engagement.

Monetizing evergreen content

A good publisher knows how to use their content. But a great publisher knows how to reuse it. Well, as it turns out, e-commerce content is quite reusable. Unlike news articles with a limited shelf life, evergreen content such as product reviews, gift guides, or tutorials can continuously generate traffic and sales over months or years. For example, a guide on “Top recipes for a vegan Thanksgiving dinner” can remain relevant every season, providing steady affiliate revenue. And it is quite easy to update the e-commerce part of such content to fit the current business needs.

Audience Insights

Publishers often have trouble determining what their audience is like. Sure, you can get some demographic information from third-party data. But if the only way in which your audience interacts with your brand is by reading your content, you are quite limited. Here lies another benefit of embedded e-commerce content. Namely, since users will interact with it, it is quite beneficial to use tools that provide detailed analytics on user behavior. What they click, how they shop, and which products are most appealing... This first-party data isn’t just useful for commerce, but also for publishing. With it you can identify popular topics or unmet audience needs, creating a virtuous cycle of engagement and monetization.

The risks of embedded E-commerce

So, does what we've written so far mean that every publisher should incorporate e-commerce? Of course not. As we said, this is only one of many other monetization methods. And picking the wrong monetization option can easily ruin you, as a publisher. So, to get the full picture, let's now outline the risks of embedded e-commerce.

Jeopardized trust

You cannot succeed as a publisher if your readers don't trust you. It doesn't matter how well you research your topics, or how well you present them. Readers' trust is a prerequisite if you are to have any decent viewership. Well, a potential downside of embedding e-commerce in your content is that you jeopardize that trust. Embedding product recommendations, especially without clear disclosure, can lead to skepticism about the publisher's motivations. For example, if an investigative news site suddenly pushes luxury products, it may seem disingenuous, eroding its reputation. Publishers must balance monetization with their journalistic integrity.

Over-commercialization

Once you start earning money from embedded e-commerce content you might feel an urge to add more of it. Well, if this comes to pass know that there’s a fine line between subtle monetization and turning a news site into a virtual mall. If you overload articles with product links you will disrupt the reading experience, making it feel more like a shopping catalog than a news platform. This approach risks alienating core readers who seek valuable insights, not constant sales pitches.

Revenue dependence

Here we reflect on a possible risk of affiliate marketing and partnering up with commercial brands. Namely, it is quite easy for publishers to tie themselves too closely to e-commerce brands. In this case, they will find themselves at the mercy of external forces, such as changes in affiliate program terms, reduced consumer spending, or shifts in brand partnerships. For instance, a reliance on Amazon’s affiliate program can backfire if commission rates drop suddenly scenario many websites have faced.

Operational challenges

Embedding e-commerce content only makes sense if you go out of your way to do it right. Well, this entails certain challenges. Implementing embedded e-commerce isn’t as simple as dropping a few links into articles. You will need to build a robust infrastructure to support integrations, manage inventory (if hosting their own shop), and ensure smooth transactions. If you can only spare a smaller team to work on it, they may struggle with this added complexity. Especially if they lack dedicated e-commerce expertise.

Privacy concerns

The data collection that e-commerce brings does bring some interesting benefits, especially when it comes to personalization. But, handling customer data also brings its fair share of worries. Publishers must navigate strict data privacy regulations like the GDPR in Europe or CCPA in California. Non-compliance can lead to hefty fines, and mishandling user data can severely damage trust.

How you can mitigate the risks of embedded E-commerce

Even now that we've factored in the risks, we still believe that embedding e-commerce has tremendous potential for publishers. The main trick is that you need to know how to mitigate the risks and enhance the benefits. So, to help you out, let's address these in a couple of different ways.

Keeping the trust

To address credibility concerns, you need to be transparent about your e-commerce efforts. This is especially useful to remember if you are trying to build trust with Gen Z, as they value transparency quite highly. Clearly labeling your affiliate links, sponsored products, or branded partnerships will help maintain trust. Additionally, recommendations should be based on genuine editorial judgment rather than purely profit-driven motives. We would strongly recommend that you slowly incorporate e-commerce, and make it as seamless as possible with your brand. Once the readers get used to it, you can then add more content without that much friction.

Segmenting E-commerce content

No matter how well you integrate e-commerce, there will still be readers who find it annoying. And in our view, there is no reason why you should lose those readers. What you do is simple. Instead of integrating e-commerce into all articles, you can create separate content categories, such as "Shopping Guides" or "Editor’s Picks." This segmentation allows readers to choose whether to engage with commerce-focused content, preserving the integrity of pure editorial pieces.

Leveraging AI

The ideal content for both the publisher and the reader/customer would be one that covers what the reader is interested in and seamlessly recommends a product that the reader would like to buy. While this type of content might seem out of your reach it is far from so. The only obstacle is whether or not you can make use of AI. There are many ways in which publishers can use AI to provide personalized recommendations. For example, a reader interested in fitness content might see product links for workout gear, while another browsing tech article might find laptop suggestions. There are many metrics you can use to determine whether or not you are hitting the mark with product recommendations. And the sooner you get a hold of these metrics, the better.

Long-term planning

The last, and arguably the most important piece of advice we have for you is to consider embedded e-commerce as a long-term strategy. While its primary goal is to make your money, it shouldn't be its only goal. In practice, it is best to consider it as another effort to deepen your relationship with your audience. By offering products that genuinely resonate with readers, you can create a mutually beneficial ecosystem: readers gain value through curated recommendations, and you gain revenue without compromising your integrity.

However, the key to success lies in moderation, transparency, and innovation. If you can adopt a thoughtful approach you will reap significant rewards while avoiding the pitfalls of over-commercialization.

Final thoughts

We would lastly like to mention that embedded E-commerce in news publishing doesn't have to be an exclusive monetization tactic. Depending on how you choose to implement it, you can easily combine it with other monetization tactics like subscriptions or ads. Whatever you opt for, we would advise you to carefully consider your readers and to try and find a monetization strategy that they would find least intrusive.