Facebook has previously tested several times to develop 3rd party apps for social commerce, finally, it found the best way to to do so in the Instagram Checkout function. Since the release of Shoppable Tags and Shop Now functions, Instagram has recorded 130m monthly users tapping on product tags. However, Instagram previously could only redirect users to the brands’ product pages, instead of retaining them within the app. This probably is one of the reasons that the platform accelerated the official release of Instagram Checkout function for e-commerce.
Video source: Instagram Press
Everything you need to know about Instagram Checkout function for e-commerce
According to Instagram Press, at the moment Instagram Checkout is only available in the US for 20 brands, for instance, Adidas, Dior, Mac Cosmetics, Zara…
What will the new function look like on your phone
Image source: TechCrunch
In the beta version, Instagram Checkout function will appear as tags on the feed, Stories and Explore. For now, this version is only distributed to limited businesses, but will gradually be opened to more brands.
Shopping on Instagram: current vs future
Image source: TechCrunch
- When you open the Shoppable Tags on a post, instead of showing you the CTA of “View on Website”, it’s replaced by “Checkout on Instagram”.
- You only need to input your payment information when using Instagram Checkout for the first time. The platform will automatically store the information for future shopping. This prevents customers from discarding their purchase due to frustration caused by having to sign up and re-enter information for each and every brand.
- Users can track their orders within Instagram that displays the status. They can even cancel and return merchandises, or contact the seller.
- Users will also receive notifications from Instagram when their orders are shipped, but not within the inbox, unlike Facebook.
How can you pay on Instagram Checkout
Instagram confirmed that PayPal, Visa, MasterCard, etc. can be used for Instagram Checkout. They also plan to include other tools such as Shopify and ChannelAdvisor soon. As for PayPal’s additional fee, it’s likely that the sellers will cover it.
You can find more details on our article about Instagram’s payment function.
Why Instagrams Checkout function is a game changer!
Instagram includes function ranging from raising brand awareness, engaging with audiences, enabling shoppable tags to allowing direct checkout. Consequently, Instagram is covering 100% of the online customer journey!
The Instagram Checkout function will have a huge impact on your Ad campaign.
Brands and agencies will be able to engage and drive sales from a single platform. With Instagram Checkout, they no longer need to drive traffic from Instagram & Facebook to your website to boost your sales. As a result, we foresee Facebook releasing a new Ad format, e.g. direct purchase from Ads to Checkout.
Performance monitoring and conversion tracking will also be considerably simplified.
We expect an easy way to track social media audience from the first click to the final purchase without having to consolidate your e-commerce website’s data from Facebook Insights to Google Analytics.
Influencer marketing 2.0 is on the way!
With the use of Instagram Checkout, your KOLs could become direct sales contributors. We imagine that the KOLs’ commission-based model could replace the traditional sponsorship model. It’s a small revolution for commerce influencers who are already receiving purchase orders from Instagram direct messages. It’s also important to keep in mind that Facebook is actively working on its own solution Brand Collabs Manager to connect with creators and KOLs through Facebook Business Manager.
Learn how to implement Influencer Marketing in 3 steps:
Instagram might develop a self-made payment solution in the coming month to shortcut the users’ purchasing process.
Although at this stage Instagram still integrates 3rd party payment method for this beta test, we would not be surprised to see Instagram build their own solution to maximize their revenue on each purchase.
Last but not least, it’s time to think of the impact in terms of brand organization.
The Social Media team, CRM and e-commerce experts will have to work closely together to understand, anticipate and rethink the way to use social media to drive more sales.
If you want to start marketing on Instagram, contact us!