With this new feature, not only the Shopaholic heart beats faster, but also that of the merchants!
Instagram is further expanding the shopping options in its own app with the new Checkout function. As a result, the platform now allows users to complete the entire ordering and payment process in the app, without the hassle of switching to external online stores. This also eliminates the need to re-enter login or payment data, as these only have to be stored once on Instagram.
Checkout is a further development of the store function that was rolled out last year. Featured products can be linked directly in the organic post, in the feed, in Stories, and even in Explore. Previously, when users clicked, they were taken to a product page that contained an external link to the respective online store. This is now replaced by the checkout button, which takes the user to another subpage where he can select the color and size of the product, for example, and then pay directly in the app to complete the ordering process. So far, the Checkout feature is only available for a limited beta test for select businesses in the US. Among others, well-known companies like Adidas and Michael Kors, and of course beauty influencer favorites like NARS and Anastasia Beverly Hills, are currently testing the new feature. In true American fashion, only credit card and PayPal payment options are currently offered.
Since convenience is a big part of online shopping, Checkout offers benefits not only for shoppers, but also for influencers and businesses. So it makes it easier for them to increase conversion from product ads on Instagram to actual purchases. After all, around 130 million Instagram users already interact with product tags in the app every month.
But what will the new feature look like for businesses? To use Checkout on Instagram, the only way left is via the Facebook Business Manager. Here you need to create the Facebook Shop, where the products are stored with information. Some may even already have this one, because if we recall, a similar shopping offer was already launched on Facebook – though with moderate success here. The fact that Instagram holds a completely different potential is already conditioned by the platform itself, where the focus is already fundamentally on the topics of lifestyle, beauty and consumption.
Nevertheless, you don’t get anything for free. Although Instagram is still keeping quiet about the specific costs for the new function, there is talk of a selling fee that will be incurred by companies that want to integrate Checkout on their profiles. This is intended to compensate for transaction costs incurred. For the end consumer, however, this should have no impact on the product price.
If you work with influencers as a company, the workflow with the Checkout feature looks like this: the influencer gets access to the company’s product catalog so that the products can be linked in the posts. However, it does not influence the information on the product page. Both parties get access to relevant analytics that track the success of the placement. The user does not buy from the creator, but directly from the company.
With the checkout feature, Instagram is clearly attacking competitors like Amazon, but indirectly also the classic e-commerce of “normal” companies. So what is the best way to prepare for the rollout of the function to the entire app – about which, by the way, nothing is known yet? The already available shopping function should definitely be used. At the same time, it’s important to remember that despite the expansion of sales opportunities on Instagram, the focus is still on organic content! Product placements and advertising only generate a desire to buy on the part of the user if they are authentically presented. – because advertising actually still no one likes! And whoever needs support and expertise in exactly this supreme discipline of the social media world is welcome to contact us TACSYs now at the latest 🙂 !