What does Instagram Checkout Mean for E-Commerce?


What does Instagram Check out Mean for E-Commerce?

Last summer we saw Instagram take their platform to new heights as they launched a global test where they replaced the activity tab along the app’s navigation bar, with an Instagram shop tab, which enables users to shop top brands and creators products all within the app. Users could also filter products by categories, making the experience even more personalised! But how does this affect business’s E-Commerce sites? 

If you don’t have a website, then you can most definitely reap the benefits of Instagram Checkout. This feature has the power to drive your audience from browsing to purchasing in just a few minutes as 46% of users make a purchase after seeing a product or service, which can do great things for your conversion rate.

What’s the catch?

Having a presence on Instagram E-Commerce Checkout is extremely beneficial for your business as 65% of users visited the brand’s website or app after they were exposed to the products. However, if you already have an established E-Commerce site, it may be worth sticking to what you know as brands who avail of the shopping feature must pay a selling fee of 5% per shipment, which means you’re losing out! Instagram Checkout also takes away the ability to collect customer data such as emails and signups as the entire process is handled by Instagram which can be detrimental for brands who are just beginning to grow a customer base. 

An e-commerce website for your business is built for that sole purpose, unlike Instagram who updates and change their platform once they find a new reason to. Having your own E-Commerce site means you will not be affected by any algorithm changes or have to worry about your products getting lost among others. 

Hold onto your brand identity 

When your business sells through Instagram, your brand identity goes down the drain as your products are showcased through an Instagram post and layout which you have no control over, and every other brand is using – except for the creative and copy of course. You have no say in the customer journey either which is valuable for some businesses who rely on discovering how their customers purchase. 

The technical downside of Instagram E-Commerce Checkout

And of course, Instagram E-Commerce Checkout runs the risk of technical errors, like everything. However, if Instagram is down for a whole day, your business could potentially lose a full day of customers and purchases as you have no control over fixing the issue. So, would you rather risk your customers shopping elsewhere, or manage your own e-commerce website?  


Instagram Usage and Ecommerce Stats

Instagram presents plenty of sales opportunities. It boasts:

  • 1 billion monthly active users.
  • 71% of the billion Instagram users are under the age of 35 (Statista, 2019).
  • Over 500 million accounts use Instagram Stories every day (Instagram).
  • One-third of the most viewed Instagram stories are from businesses.
  • 90% of accounts follow at least one business on Instagram.
  • Over 80% of Instagram users discover new products/services on the platform.
  • After seeing a product/service on Instagram, 79% search for more information, 37% visit the retail store and 46% make a purchase.
  • Instagram helps 80% of users make purchase decisions (Facebook, 2019).
  • Instagram engagement increased by 29% for brands between October 2017 and May 2018 (Socialbakers, 2018).
  • Brands can generate over 4 times more interactions on Instagram compared to Facebook.

Instagram is making moves towards the E-Commerce market and it is a useful opportunity for some retailers


The bottom line is, just because it’s a new and trendy feature, doesn’t mean you have to adapt – so don’t feel like you’re missing out! Vindicta Digital provide effective E-Commerce web design suited for your business needs and that will drive sales of your products and services in an efficient way. 

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