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Instagram Jumps into E-commerce; Launches In-App Shopping Feature, ‘Checkout’

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instagram shopping - Instagram Jumps into E-commerce; Launches In-App Shopping Feature, ‘Checkout’
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Instagram is all set to roll out a new feature for its shopaholic’s consumers and that feature is “In-App Shopping” and easy checkout. This Facebook-owned company is ready to provide an e-commerce solution to its consumer on a single platform. The Android app development team had already developed these features and started testing it on several beta versions. According to the Financial Times, the app has partnered with some big names for their In-App shopping feature. The big names including Zara, Burberry, Adidas, and many others.

Instagram is planning to officially launch this feature for all its users, with more vendors in the coming months.

Instagram has changed shopping for fashion lovers forever. As per The Guardian reports, high-end fashion brands had integrated with Instagram to sell their products directly to consumers using Instagram. But brands like Kylie cosmetics, Nike, Uniqlo, and H&M will be only available to the US customers. However, the company had not yet given any comments on how much its cut of the purchase will be.

The Facebook owned app has made the retail services so simple. Previously, when people wanted to buy any product they saw on Instagram, they were redirected to the retailer’s website. This feature sometimes annoyed the customers and many customers end up not buying the product online. Now according to news in Recode, Instagram will keep a small cut in the purchase and will allow its users to buy their favorite fashion products directly using Instagram. Instagram believes in idea of making the shopping process simpler, because the simpler the process the more people will likely buy the product.

Instagram check out - Instagram Jumps into E-commerce; Launches In-App Shopping Feature, ‘Checkout’

The question is how this feature will work? The process is simple, when you a user will tap the option of “View the Product” it will take them to the Checkout page rather than taking them to the retailer’s website. In the Checkout option, the users can select the product details. Users can specify different options like size, color and other product details. Then user will be asked to enter the information and payment details. Once you have entered the information o Instagram, it will be saved for your future purchases. This will make customers shopping experience more convenient as your information will be securely saved.

For the payment process, Instagram has partnered with PayPal to make the payment procedure convenient for the shoppers. The best part about the Checkout feature is that you can manage all your orders, track your shipping and will receive delivery notification through Instagram only.

Instagram was speculated to do something big on the E-commerce industry specifically targeting the fashion brands. It was reported on Trak.in that Instagram can probably launch a separate e-commerce site for its users with the name of IG Shopping. Well, the plan looks distant but you never know that can also happen probably in coming future.

With this new move, Instagram had opened new doors for the entrepreneurs of fashion industry especially. This new revenue stream for entrepreneurs will add rejoice to their businesses. According to Entrepreneur.com, with this new feature Instagram will help entrepreneurs to drive more traffic to their websites and sell their products. It will engage more customers and will become a full fledge channel for the companies to sell their products.

Instagram has always been an e-commerce friendly platform for the vendors. Whether it is their product tagging feature or shopable update feature on Instagram stories. The platform has always managed to capture the attention of big brands and consumers. This is the best platform to boost your sales drive and engaging more to your consumers. Recently, Facebook released a report in which it stated that 87 percent of people had taken action after seeing the product on Instagram. 47 percent of them had made a purchase whether online or offline. The brands accounts also saw an increase of followers after a certain products and 31 percent of the people start following the brand. 65 percent of the people visited the brand’s website after seeing a certain product information on Instagram. With the introduction of this new In App shopping and Checkout feature the numbers are likely going to increase.

No doubt, this is an awesome platform to boost your sales, but with every platform there are definitely some limitation you need to keep in mind. There will be a small cut in the purchase that Instagram will be taking, and no one knows yet how much that cost will be. So, it is definitely going to be a difficult choice for the people with limited marketing budgets. Secondly, you cannot use the Instagram Checkout feature with the Instagram ads. You can only use this feature either in the feed or in Instagram Stories.

The other big issue that arises for the consumers is the privacy issue. Mark Zuckerberg, the chief executive of Facebook announced that they are moving into a “privacy focused model” for all of their apps. But, Facebook is always less trusted with the privacy concerns. So, with this new feature where you have to provide all the shipping details and payment details which is definitely going to be saved for the future purchases it will be a matter of concern for the users. Although, Instagram is assuring their customers that all the data of Instagram Checkout feature will remain secure and it will not be shared with anyone at any cost. Even with the brands the only information of consumers that will be shared is the necessary one needed to complete the shopping procedure such as customer’s name, email, and shipping address etc.

This is going to make a new way for Facebook to launch other in-paid services. This new source will add a new revenue stream to the Facebook owned company and with the more encouragement of users the new services will be launched.  The decision of Mark Zuckerberg, in which the communication will be encrypted on all the three platforms Whatsapp, Facebook and Instagram will encourage users to add their payment information. Also, it will personalize the advertisements on the site.

The feature is still in testing in beta versions and it will be soon available to the US mobile users. It is surely going to be a hit feature because it is going to boost new e-commerce sales and produces tons of revenue streams for all. This is a win-win situation for both vendors and consumers. It will provide the convenient shopping experience to the consumers and vendors can boost their sales as many people who do not purchase online due to the complicated procedure will now be able to buy their products in few clicks.

For now, this feature is only available in the U.S and the number of brands is approximately 25 to test the feature. But once this feature is tested definitely many brands will integrate and witch to this feature. The limited availability of this feature to the U.S has definitely let down users around the world but we think Instagram is definitely working to launch this feature in all the countries with a high number of users. We hope Instagram rolls out this feature soon and not only limited to the U.S but all the people around the world!

This is a Guest post by; Carl J. McGinn of Ingic Solutions

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