Instagram a social networking site is starting a whole new revenue stream, “Checkout With Instagram”. Checkout with Instagram, launched in the US on the 20th of March 2019, would let users shop for the products without leaving the site.
The product tags on shopping posts aren’t of no use after all. Earlier when users used to tap on the post to reveal the product tags and open, they used to see the “view on website” button which used to redirect to the e-commerce site of the company. But now when the tap the post to reveal the product tag and open they’ll see checkout options within Instagram.
Instagram believes shopping represents a massive new business opportunity. Instagram Co-founder Warby Parker and co-CEO Neil Blumenthal says “We started using product tags to make shopping more convenient for our customers, Checkout takes this experience one step further, making it even more intuitive and seamless for people who have discovered products they want to purchase instantaneously.”
“Checkout is just one part of our long-term investment in the shopping,” the company said in a blog post. “We’re excited to introduce even more ways for people to enjoy shopping on Instagram this year.”
Selling fee for Merchants –
An Instagram spokesperson says to TechCrunch and confirms saying, “We will introduce a selling fee to help fund programs and products that help make checkout possible, as well as offset transaction-related expenses.”
When asked about how much the selling fee would be, the spokesperson told TechCrunch, “We aren’t sharing the specific number right now. We are testing a selling fee with businesses during the closed beta. It will not change the price of the items for consumers.”
Basically, Instagram wants the merchants to pay the selling fee in return to higher purchase conversion rates instead of forcing users to pay a convenience fee for buying goods through Instagram.
More Insight –
Insta Shop with Checkout –
Earlier completing a purchase on Instagram required redirecting to the retailer’s website, where users had to undergo signing into the website procedure. This procedure would require a certain amount of time and so there were huge chances that the user would abandon his/her cart. Instagram thinks that letting people purchase within the app by not redirecting to other websites would inspire users to shop more and thereby create a big business. Also, Instagram could convince brands that social network e-commerce can produce better returns because there are fewer steps before purchase.
How to make a purchase?
Items, which are eligible for in-app checkout, have a “Checkout on Instagram” button. Upon selecting it you will be requested to provide an email address, delivery information and payment method. After reviewing the details user can place the order. Payments can be done with PayPal, Visa, Mastercard, American Express or Discover.
Launch partner brands
• Beverly Hills
• Huda Beauty
• KKW Beauty
• Kylie Cosmetics
• MAC Cosmetics
• Michael Kors
• NYX Cosmetics
• Oscar de la Renta
• Outdoor Voices
• Ouai Hair
• Warby Parker