Online shopping is now with Instagram: why brands should consider Social Networks to boost sales
This week Facebook-owned photo-sharing platform launched in the US its own e-commerce with in-app shopping button partnering with vendors including Adidas, H&M, Nike, Uniqlo, Zara and luxury brands as Balmain, Burberry, Dior, Michael Kors, Oscar de la Renta and Prada.
We @GotU are excited about this new e-shopping feature and convinced that Facebook with its new Checkout on Instagram is writing a new chapter in e-commerce right as you read this article.
Our colleagues at 77Agency have already explained the ins & outs of the new Instagram shopping checkout but here is how we @GotU see its impact of SMB marketing.
After edging towards eCommerce for some time, Facebook took a plunge with ‘Checkout on Instagram’ to facilitate in-app Shopping.
For now, only organic posts (Stories, feed posts & Explore content) from the launch partner merchants, 23 in all, will feature Checkout buttons, and ads aren’t eligible. But Facebook will found its Eldorado with its instant picturesque social network going e-commerce, as exactly what CEO Mark Zuckerberg plans for this 2019.
Today, we’re introducing checkout on Instagram.
When you find a product you love,
you can now buy it without leaving the app.
Given Instagram’s 120 million monthly active users in the US and the visual focus of the photo-sharing platform, it will be safe to assume than more brands will be willing to embark on the new e-commerce process.
The thing is, Checkout on Instagram can convince brands that the social network producers better return on investments as there are fewer steps to complete the purchase. Remember, we are talking in-app shopping checkout here.
When you tap to view a product from a brand’s shopping post,
you’ll see a “Checkout on Instagram” button on the product page.
Tap it to select from various options such as size or color,
then you’ll proceed to payment without leaving Instagram.
You’ll only need to enter your name, email, billing information
and shipping address the first time you check out.
Once your first order is complete, your information
will be securely saved for convenience the next time you shop.
You’ll also receive notifications about shipment and delivery
right inside Instagram, so you can keep track of your purchase.
Everything is neatly stored and kept handy in one place. “With their protected payment information in one place, they can shop their favorite brands without needing to log in and enter their information multiple times,” Instagram explains. This is smart, as the average documented online shopping cart abandonment rate is as much as the shocking 70%! Saving merchants from abandoned shopping carts left by users frustrated with having to sign up with each different brand is the key value offered here.
Consequently, Instagram’s ad business can get a boost with Checkout-equipped ads.
Checkout on Instagram is currently in closed beta
for businesses and available to people in the US.
The brands below will begin rolling out today and
over the coming weeks — and more will be coming soon!
Instagram has been recently spotted prototyping a Pinterest-style feature that would render private Collections of Saved posts visible to public. Now, that would mark a break-through for social influencers to recommend Checkout-equipped products. And it IS really astute and smart thinking in terms of proving superb UX.
And when it comes to making a purchase, 64% of customers find customer experience more important than price. According to the Guardian, by 2020, the quality of customer experience provided by a brand will be more important than price and product as a key differentiator.
Equally smart is the choice of PayPal as a partner to process the payments. A new study has found that PayPal transactions have 82% higher checkout rates than non-PayPal transactions (PP-powered checkout converts at 88.7%, as of May, 2018).
This is a big move for the Social Network.