|  March 28, 2019

Instagram Checkout, the future of eCommerce?

Instagram Checkout, the future of eCommerce? Feature

We’ve now had a few days to digest the news that Instagram will soon be allowing app users to browse products and checkout without leaving the app. Currently, the new feature is only available to users in the US and with a few select merchants including Adidas, Burberry, Dior, Kylie Cosmetics and Zara.

Instagram has previously stated shopping represents a huge opportunity for the business and we’re already aware the company is building a standalone shopping app.

Checkout is just one part of our long-term investment in shopping.
We’re excited to introduce even more ways for people to enjoy shopping on Instagram this year.

In practice, this means items available for in-app checkout will now feature a Checkout on Instagram button where currently a user was given the option to View on Website. The user will then be asked for their email and finally payment and delivery details. Completing the frictionless order without leaving the app. “People will be able to pay with Visa, Mastercard, American Express, Discover and PayPal. For brands, access to checkout will be limited during this closed beta. When we expand, businesses will be able to integrate directly or work with partners including Shopify, BigCommerce, ChannelAdvisor, CommerceHub, and more in the future.” Instagram said in the announcement post.

In return for offering this frictionless checkout, Instagram is charging merchants a fee. We haven’t heard how much this will be yet however the company has recently announced over 130 million app users tap Shopping tags each month.

When will Instagram Checkout be available in the UK?

We’re yet to hear when Instagram Checkout will be made available to merchants and users in the UK and the rest of the world. We’ve previously seen new Instagram features such as Business Accounts and Shopping role out slowly, firstly to Verified profiles. We expect it to be more widely available later in 2019.

What does Instagram Checkout mean for merchants?

It’s clear to see Instagram Checkout will potentially have a massive impact on eCommerce, the same way the app has revolutionised awareness building. We’ve highlighted a few potential eCommerce areas which may be affected by Instagram Checkout:

  • There will be less steps to checkout
    • This should increase conversion rate
  • There will potentially be less visitors a merchants website
  • A priority for brands to grow organic and paid Instagram activity
  • If a user checkouts via Instagram, who owns the customer?
    • Potential data and permissions issue
  • Will the merchant be charged twice for the transaction (Instagram and site payment provider)

The future is Instagram?

It’s an exciting time to be in eCommerce, the sheer potential for brands to launch and deliver to customer within days thanks to the potential audience within platforms such as Instagram drives our enthusiasm for the industry. We can’t wait to jump into Instagram Checkout when it rolls out to the UK later in 2019.

 

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