Instagram is Testing In-App Checkout for E-commerce Brands

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Instagram has just released in-app purchasing for 23 brands on their platform. This feature is currently only available for a few, select, brands like Adidas, Burberry and Dior. However, this limited release is set to expand and be available to more brands in the upcoming months.

How it works

This update is an advancement of the shopping features that Instagram already has. Right now, brands can tag pictures of their products with the product’s name, price, and a link to their e-commerce site where users make the purchase. This new feature will allow users to checkout within the Instagram app itself rather than going through an e-commerce site. Instagram will be making an undisclosed commission off of these sales, but the benefit for brands is that it makes the buyer’s journey for their product more seamless.

Why it matters

Many smaller brands use Instagram as their primary marketing channel, so this change could be huge for them. The companies could greatly increase their efficiency when the channel, where leads are generated, is the same one in which sales are made. Furthermore, customers won’t have to take as much time for consideration as they navigate to new pages and wait for them to load. Less work for customers means more conversions for businesses. This new feature will likely strengthen the already booming influencer marketing industry as well. The ability for users to make purchases directly from the app will only increase the “influence” of influencers because fewer of the leads that they generate will fall out of the sales funnel as they often do while switching between different apps and websites.

In-app purchases on Instagram will affect e-commerce by condensing the buyer’s journey and allowing users to have a complete shopping experience within a single app that they’re already using. Implementing more purchasing options into a consumers daily routine not only provides them with a one stop shop for their social media as well as their favorite products. This leads to an opportunity for businesses to implement marketing campaigns seamlessly with the sale of a product in a way that has never been done.

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