Shopify Introduces Product Network

Shopify has introduced the Product Network, a new system designed to help advertisers connect with shoppers across multiple merchant stores by showing contextually relevant products, even if the store a shopper is browsing doesn’t carry them.

The concept is straightforward: if a customer searches for “organic cleaning supplies” on a Shopify store that doesn’t stock these items, the Product Network can display alternatives from other merchants. These products may even appear on a different store’s homepage, seamlessly blending with its own inventory. Shoppers can add all items to a single cart, often without noticing that some products come from other merchants.

Shopify positions the Product Network as a hybrid between advertising and merchandising. While similar in some ways to platforms such as Google Performance Max, Meta Advantage+ Shopping, and Amazon Performance+, the system focuses on presenting relevant products rather than just filling ad spaces. Advertisers provide a cost-per-acquisition goal, and Shopify’s algorithm optimises placements automatically.

According to Amanda Engelman, Shopify’s advertising product director, “It’s just a different approach to the world,” emphasising that the system prioritises relevance over pure ad monetisation.

Historically, Shopify has been cautious with ad revenue. Its Audiences programme, for instance, allows merchants to build customer segments for use on external platforms like Google or Meta without taking a cut of the ad spend. The Product Network follows a similar principle: it initially prioritises contextual relevance over revenue, though commissions for third-party product sales may play a larger role over time.

Merchants participating in the Product Network earn commissions on sales of third-party products, either in cash or as Shopify ad credits. These credits can then be reinvested in off-site advertising campaigns, effectively growing merchants’ reach and boosting their advertising budgets.

One of the main advantages of the Product Network is that it allows advertisers to reach shoppers across a broader range of stores without requiring the merchants to stock the advertised products themselves. By placing products in highly relevant contexts—whether in search results or on homepages—Shopify aims to improve conversion rates and create a more seamless shopping experience.

Unlike conventional display or sponsored ads, the Product Network optimises for likelihood of purchase rather than simply filling available ad slots. This can lead to higher-quality traffic, better engagement, and more meaningful conversions.

Merchants benefit as well, earning commissions on third-party products and incentivising them to participate actively in the network. Over time, this helps expand the system’s reach and overall value for both merchants and advertisers.

The network is designed to integrate smoothly with the existing Shopify ecosystem, allowing multiple merchants to collaborate indirectly while still maintaining their own brand identity and store inventory.

Early results suggest that this context-driven approach provides higher shopper engagement compared to traditional ad placements. Shopify hopes that, as the network grows, it will further refine which products appear based on shopper behaviour, past purchases, and likelihood to convert.

Revenue for Shopify may become a more significant factor in the future. While the system currently prioritises relevance, the platform could gradually favour higher-commission products while still maintaining its focus on optimising for conversions.

For advertisers, this means a new way to gain visibility across multiple merchant stores, reaching potential customers even when those products aren’t stocked in their own store. The network’s optimisation and commission model also provide a scalable way to boost campaign performance.

Shopify’s approach represents a shift in how advertising and merchandising can coexist. Instead of forcing ads into predetermined spots, the Product Network integrates product recommendations directly into the shopping experience, maintaining a natural feel for customers.

Looking ahead, Shopify plans to enhance both personalisation and monetisation within the Product Network, aiming to balance advertiser revenue with shopper experience. The ultimate goal remains clear: keep shoppers engaged on the platform while helping merchants sell more, even for items they do not directly stock.