Instagram recently announced the launch of its new checkout feature, allowing you to buy products directly in the app, and making it easier and more convenient to buy from some of your favorite brands.
Checkout on Instagram is currently a closed beta and only available to a handful of U.S. brands, including H&M, Nike, Prada, Burberry, and Zara.
Given the brands currently part of the beta, it’s clear this feature will be heavily focused on the beauty and fashion industries. And, we expect Instagram to open it up to more retailers sooner than later.
How exactly does it work?
Tap on a product from a brand’s shopping post. Then as you’d normally do, choose from various options such as color and size. From here, Instagram takes you directly to checkout without having to leave the app.
The best thing about this is you only have to enter your billing and shipping details once—they’re securely saved for the next time you shop. You’ll receive shipping notifications directly in-app so you can keep track of your purchases.
According to Tech Crunch, Instagram “will introduce a selling fee to help fund programs and products that help make checkout possible, as well as offset transaction-related expenses.” This opens up a whole new revenue stream for the Facebook-owned app.
As for how it’ll affect advertisers, ads aren’t currently eligible for promotion with the checkout button—however, we think this will certainly change very soon, as Instagram starts to invest heavily in shopping related items. Checkout also comes at a time when Google just launched shoppable ads in Google images. Competition will heat up quickly!
Watch This Space
We’re looking forward to seeing some of the early results of Checkout for Instagram and what conversion rates will look like versus traditional website checkout. It all bodes well for retail advertisers looking to expand into another popular online channel to maximize performance and revenue.
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