What Instagram’s Checkout Launch Means for Brands

Instagram announced the launch of shopping checkout which will allow users to purchase a product without leaving the app. With stored payment info this will create a very quick mobile tap-to-buy shopping experience for users. Checkout through Instagram launched in the U.S. with a select list of around 20 top brands, including Zara, Michael Kors, Revolve, Adidas, Warby Parker, and Kylie Cosmetics.

How it Works

Shoppable tags appear on posts, stories, and Explore content. The user taps on the post to reveal the tag, which reveals the product name and price. Clicking into the tag will take them to the checkout page. Users choose their size, color, and then tap the checkout button to buy on Instagram. The first time a user will be prompted to enter payment information, but then that information is stored for future purchases. Users will be able to pay with PayPal, Visa, Mastercard, American Express, and Discover. Instagram also plans on integrating to eCommerce platforms.

What Brands Can Expect

Instagram will likely keep this beta roll out limited to a select group of brands and then over time allow more brands to join. Work with your social media manager to stay in contact with Instagram to see when it’s your turn to join the party! This will be an impactful rollout for customers so being on time is important. Being late could allow your competition to take market share as millennials will quickly adopt Instagram shopping as the feature goes mainstream.

Seller Fees

There will be seller fees for using “Checkout with Instagram”. Instagram has not announced what those fees are, but they have confirmed there will be fees for use of the feature.

Instagram Advertising

Part of the strategy for Instagram is to improve ROI for Instagram ads, persuading brands and retailers to spend more with their ad platform. With fewer steps to check out, Instagram hopes to drive more revenue for brand advertisers.

Impact

Instagram now has more than a billion users and growing. With over 130 million users that click on product tags to shop, this rollout could stand to be disruptive for eCommerce brands. Instagram is quickly becoming one of the most influential sources for millennial shoppers. As this feature rolls out nationally in the US, many brands will jump in and see success - capturing market share and becoming more connected and relevant with their consumers.

Learn more about the launch of Instagram Checkout by watching the video below.

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