Instagram has recently released a new function—Instagram Checkout.

Users can now shop and proceed to check out the items without leaving the app. With the launch of this new function, Instagram is evolving into a marketplace, instead of being “just” a great social media platform.

By keeping users in the
app during the whole purchasing process, it encourages impulse buying from
customers. This can in turn boost conversion rates and give brands even more reasons
to advertise on Instagram. Brands are likely to be more generous on boosting
shoppable posts on Instagram if Checkout leads to more purchases…

Before sharing with you
5 transformations we expect the new function will bring to your social media
strategy, here’s everything you need to know about Instagram Checkout.


How will it appear on
your phone?

Image source: Instagram Press

Users who frequently tap
on the Shoppable Tags will find Instagram Checkout familiar. You will be able
to find them on your Feed, Explore and Stories. At the moment, Instagram is
still testing this new function, so it’s only open to a limited number of
brands and only visible to users located in the United States. 


What is the difference in
the shopping experience for users?

instagram-checkout-difference-in-shopping-experience

Image source: Instagram Press

  • When you tap on photos,
    a Shoppable Tag will appear as usual. However, clicking on the Shoppable Tags
    will direct you to the page with CTA “Checkout on Instagram”. Users are freed
    from clicking “View on Website” and will not be directed to the shopping page
    of the brand.
  • Instagram Checkout also
    saves users’ effort and time during payment. A lot of online shoppers find it
    inconvenient when they try to purchase various products as they would need to
    enter their name, card number, billing address, etc. every time. But Instagram
    Checkout will save their payment information after the first usage. This will
    speed up the checkout process and lower the chance of customers getting
    frustrated by re-entering payment information.
  • The new function also
    allows product tracking within the Instagram app. Rather than remembering all
    the tracking number and logging into different brands’ account, customers are
    able to track all their orders in the app. On top of this, they can also
    contact the seller, or cancel and return the products.
  • Lastly, Instagram will
    send out notifications to buyers about the status of their order. Users no need
    to check every day to see if it’s already shipped out.

What are the possible
ways to pay on Instagram?

Instagram already announced
that Master Card, Visa, and PayPal are available for Checkout. Other e-commerce
platforms such as Shopify and ChannelAdvisor will also be integrated.


5 reasons why Instagram Checkout is important to brands.

We foresee 5 possible changes
brought to your brand’s social media strategy by Instagram Checkout.

1. It will affect how
you run your Ads campaign.

You no longer need to
use multiple platforms, such as Instagram and Facebook, to drive traffic to
your website. Driving sales from one platform is possible, and we expect
Facebook to push out new ads format i.e. buying directly on Ads with Checkout.

2. It’s easier to track the performance of
your ads and posts.

We predict a more user-friendly way of tracking the customer journey from the first to the final stage of purchase. You can save the back and forth between your e-commerce, Facebook Insights, and Google Analytics.

3. There is a chance that Instagram might develop its own payment method for Checkout

Although
Instagram has announced
various payment methods integrated into the Checkout function, we won’t be
surprised if Instagram created its own payment solution to amplify their
revenue.

4. You
will need to reorganize how your company utilize
s social media to drive sales

Customer relationship
management, social media, and e-commerce team will have to join forces and
re-examine their way of handling social media for the purpose of driving sales.

5. Influencer marketing
is going to evolve.

Instead of being sponsored to promote a product, influencers will be able to receive commissions based on their direct contribution to the sales. Facebook is also developing Brand Collabs Manager to build a bridge between brands and influencers.

If you’re new to influencer marketing, here
are 3 steps to guide you through your influencer campaign:

Driving sales is not the
only goal you can achieve with KOLs. You can also achieve other objectives such
as raising brand awareness, acquiring new fans, generating leads, etc.

When selecting influencers, there are other
important elements to consider on top of audience size. Quality of the audience
and content are what you should look out for when selecting KOLs for your
brand.

After defining your campaign goals and choosing the suitable influencer, you need to properly activate the KOLs as well. Bear in mind that building the right incentive and implementing win-win partnership is the way to go.


We hope that after reading this
insight, you can be fully prepared for the benefits of Instagram Checkout once
it is officially launched in regions outside of the US.

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