Will the New Checkout Feature on Instagram Will Help Omnichannel Retailers?
Thursday, April 4, 2019

Categories: Thought Leadership

Will the New Checkout Feature on Instagram Help Omnichannel Retailers?

Like some of the world’s most exclusive fashions, Instagram’s latest retail innovation is not for everyone. At least not yet.

The new checkout feature on Instagram, lets consumers find a product and pay for it in the app. It began its rollout on March 19th, 2019. So far, 23 brands including Nike, Zara, and Warby Parker are on this beta initiative.

According to Instagram, 130 million people tap to view a product on posts to see which retailers are tagged. The new checkout option shows users who tap on product page tags, a ‘checkout on Instagram’ button. Consumers will then have the option to pay in three different ways. Through the app, entering it during checkout, or paying with PayPal. No need to be leaving the app.

Why is the New Checkout Feature on Instagram a Big Deal?

130 million people tap on posts to see which retailers are tagged.

The goal in retail today is to enhance the customer experience. To do this, retailers want to make it as easy as possible for customers to discover the products they want. And more so, to follow through to purchasing those products in as few steps as possible. It lets consumers buy it without leaving the app. ‘Introducing checkout on Instagram’.

Instagram’s new shopping features do this by keeping consumers within the app to complete their purchase. Customers can store their payment information and shipping address on the app to make purchases even easier.

Jimmy Duvall, chief product officer at BigCommerce says: “The ability to go all the way through the social commerce journey and complete a purchase right there in the app makes the Instagram evolution to a vibrant next-generation marketplace complete. Our merchants have seen incredible success using integrations with Shopping on Instagram to convert fans and followers into loyal customers. This latest capability allows brands to continue doing just that without the risk of losing sales by asking consumers to shift to another platform to checkout.”

Retailers, Should You Be on Instagram?

1 in 3 of the most-viewed stories is from business accountsInstagram launched its business account profiles about two years ago. Since then more than 25 million users have opted in for the free features. These let you add business contact and location details, see additional analytics and purchase ads. The platform reports that 60% of its 1 billion users discover new products on the platform. And over 200 million people visit at least one business profile daily. Furthermore, 1 in 3 of the most-viewed stories is from business accounts.

There’s no denying that the shopping landscape has changed dramatically over the last decade. Social media really allows retailers to go where the customers are. Now, the checkout feature allows retailers to provide even greater convenience. In the Omni-2000 report on the state of omnichannel across the world, researchers found that the majority of global retailers (93.2%) do have a presence on Instagram. However, very few had yet to explore the ability to purchase on the app.

American retailers are early adopters of Instagram shopping with 20.1% of retailers capable of accepting orders. This was followed by the UK at 15.2% and Canada at 14.9%. This new development should increase these figures dramatically. Now a post is more than that. Every post is a shopping post. That will grip the interests of every retailer.

The new checkout feature on Instagram is another bold step forward for retailers who want to continue creating seamless experiences for their customers. To find out more about the impact of social media on omnichannel retail around the world, download the Omni-2000 global report or discover information on specific countries included in the research here.

Author:

Carla van Deventer

Carla van Deventer is part of the OrderDynamics Marketing team. Her background in corporate communication and events helps her navigate the ever-changing retail tech world.

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