Instagram’s new shopping feature will allow brands and Influencers to sell items directly from within their feed. Instagram has streamlined the user experience to tag products within content. Rather than taking users off platform, payment and order confirmation will happen within the app.
With over 130 million Instagram users now tapping to reveal product tags in shopping posts every month, up from 90 million in September, leveraging this engagement was an obvious next step. But why is it beneficial for brands?
As noted by Facebook CFO Dave Wehner, Instagram’s feed has recently become so saturated with ads that there’s simply no way to increase the number of sponsored posts without degrading engagement and the overall user experience. As a result, the price for Instagram feed ads are likely to rise considerably.
Enter Instagram’s innovative new in-app checkout feature: where users can store their payment information to easily and efficiently make purchases in the app, while brands and businesses can sell their products directly to their target audience.
Enter Instagram’s innovative new in-app checkout feature: where users can store their payment information to easily and efficiently make purchases in the app, while brands and businesses can sell their products directly to their target audience.
Only time will tell how Instagram’s Shopping feature will affect sales attribution & ROI, but for now, let’s take a broader look at the announced changes and what they mean for your brand...
It's not yet open to everybody
At this time, the feature is only being tested on US users and a handful of brands. Brands testing out checkout will include the likes of Nike, Adidas, Dior, H&M, MAC Cosmetics, Michael Kors, Oscar de la Renta, Prada, Uniqlo, Warby Parker, and Zara.
Consumers might not go for it
Consumer trust may be an issue. How willing will users be to store their payment details in-platform? For now, payment information stored with Facebook will only be used on Instagram. But it’s easy to imagine Facebook letting you use your credentials elsewhere in its family of apps. (The company is also working on a separate payment product involving the blockchain and WhatsApp.) In the meantime, Facebook says it won’t share your payment information with other users or retailers.
only some brands are eligible
Eligible brands need to sell physical goods, in only some approved regions. Items eligible for in-app checkout now have a big blue “Checkout on Instagram” button below them. Tap it and you’ll be asked to provide your email address for the seller to complete your order. From there, you enter your delivery information and payment method, review your details and place the order. Brands must also have FB page, a Business Profile & a FB catalogue (or link to Shopify / BigCommerce).
it's exciting! Here's why...
While still in its early stages, Instagram shopping provides exciting opportunities for customer generated content. Whether it be for brands needing Insta-worthy content to replace outdated product shots, or for creative recommendations from customers who love their products.
As Instagram looks to close the loop on the social media customer journey, the opportunities are endless for both brands and creators.
