Instagram has been the number one platform for online stores. In recent years, with the major rise of e-commerce, Instagram took the role of being the platform that gives the chance to small businesses to reach a wider audience. While we have special application for major brands that we all use to check their newest items, prices and as a point of purchase, Instagram had all these features except the purchase point. We can even order on Instagram with a “cash upon delivery” option, or a redirect method to the official website of the brand.
Instagram is upgrading to the next level.
Instagram is adding in app checkout an option as part of its big push towards shopping. Will this be Zuckerberg’s next big business?
On March 19, Instagram’s board took the next step in the shopping world, to make the platform a full fledge commerce business. They announced the addition of a checkout feature to the app. With this new option, the customer can store their payment info on Instagram to make their purchases faster. However, this is not a free service for the retailers. The app will be charging them a selling fee. Does this mean online orders are going to become more expensive? This is yet to be revealed because it will be different for each brand or retailer.
How will this work?
Instagram added a new blue “Checkout on Instagram” button below the post of the items available in app checkout. When the user click on this button, they will be asked to input their email in order to make it possible for the seller to complete the order. Then, the user enters their information (address and such) and payment method; it is after reviewing the details that Instagram allows you to place the order. It is a matter of a couple of minutes the first time. This new idea will bring a decrease in carts abandonment. Usually when users are redirected to the retailers’ website, they tend to abandon their carts mid order. That said, Instagram is hoping that this new way of purchase will attract more people, encourage them to shop and increase or generate traffic. The board believes that this shopping technique is a massive opportunity waiting to bloom. It was announced last year that the company will be releasing a standalone shopping app. “Checkout is just one part of our long-term investment in shopping” stated a member of the board, giving hints that there is more to come!
Be ready to see more than 20 brands using the checkout as a start, including: Nike, Adidas, Dior, Prada, Michael Kors, Oscar de la Renta, H&M and many more!