Shopify is expanding its advertising ambitions with the Shopify Product Network, a new system that surfaces products from participating merchants – even when a store doesn’t sell the item a shopper is viewing.
The pitch. If a shopper searches for “organic cleaning supplies” on a Shopify store that doesn’t carry them, the Product Network can show alternatives from other merchants. These items may also appear on another store’s homepage, blending in with its own inventory. Shoppers can buy everything in a single cart, often without realizing some products come from different merchants.
Shopify’s angle. The Product Network mirrors ad platforms like Google Performance Max, Meta Advantage+ Shopping, and Amazon Performance+. Advertisers set a cost-per-acquisition target, and the system automatically optimizes the rest.
Key difference: Shopify emphasizes merchandising over advertising. Network placements only appear if contextually relevant, rather than filling predefined ad spots.
- Amanda Engelman, Shopify’s advertising product director, says, “It’s just a different approach to the world.”
Revenue and structure. Shopify has long avoided heavy ad monetization. For example, its Audiences program builds customer segments for use on channels like Google and Meta without taking a cut of ad spend.
- Merchants in the Product Network earn commissions on third-party products, paid in cash or Shopify ad credits, which effectively fuel their off-site ad budgets.
- The Product Network follows the same principle. Early placements are driven by context rather than revenue. Over time, the system could prioritize higher-commission items while still optimizing for purchase likelihood.
Why we care. Shopify’s Product Network gives advertisers a new way to reach shoppers across a wide network of independent merchants – without requiring those merchants to stock their products. By surfacing relevant items contextually, whether in search results or directly on another store’s homepage, advertisers gain broader exposure while the shopping experience stays seamless.
Unlike traditional ads, the network optimizes for conversions and purchase likelihood instead of simply filling ad space, which can deliver higher-quality traffic. Merchants also earn commissions on third-party sales, creating a clear incentive to participate and expanding the network’s reach and value for advertisers.
What’s next. Shopify plans to refine personalization and monetization as the network grows, but its core goal remains the same: keep shoppers on the platform and help merchants sell more – even when the products aren’t theirs.
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