Instagram Checkout: Everything You Need to Know (1/2)

instagram checkout

Instagram Checkout is now available to all eligible businesses and creators within the US!

This feature allows users to make a purchase without ever leaving the Instagram app. It creates a streamlined, 2-tap process to changing Instagram followers into loyal customers.

In this guide, we’re taking a deeper dive into the advantages of Instagram Checkout. Moreover, we share 5 top business tips to drive the most sales with this new function!

What is Instagram Checkout?

Instagram Checkout lets customers purchase products from brands *directly* on Instagram — without leaving the Instagram app!

With Instagram Checkout, clients can tap to view a product from a shoppable post and then continue to the payment process, all within Instagram! They need to enter their name, email, billing information, and shipping address the first time they check out.

instagram checkout

Checkout first launched in March 2019 with just 26 brands (including Zara, Revolve, Warby Parker, and Nike) making up the unique beta test group.

And now, Instagram Checkout is going mainstream.

In a tweet by Adam Mosseri, Instagram introduced that all eligible businesses and creators within the US can now use the checkout function.

The wider rollout is indicative of how Instagram is changing how we shop — with the app taking more and more steps towards becoming an e-commerce platform.

Chatting with Glossy, Dan Gardner, CEO of digital inventive company Code and Concept, explains that as extra companies acquire entry to the function, the extra profitable it would turn out to be.

“If the [in-app Checkout] function rolls out to everyone, it would have some level of success. Customers will get extra used to it and [brands will] see a bigger raise happen. Brands won’t essentially replace [their] own e-commerce channels with Instagram Checkout. However, it will be another meaningful method to convert,” said Gardner.

Mike Karanikolas, co-founder and co-chief executive officer of early adopter Revolve, shared how Instagram Checkout has been successful for the brand up to now but isn’t currently a giant part of the company’s business.

“We’re excited about the long-term opportunity of it,” he mentioned during the brand’s fourth-quarter earnings call in February.

Instagram has also already made it possible for influencers and content creators to drive sales through checkout on behalf of brands — creating an entire e-commerce marketplace.

instagram checkout

With Instagram’s Shopping for Creators function, influencers and content creators can now add product tags from their brand partners to their Instagram posts and stories that users can tap on and pay for directly within the Instagram app.

There currently is no affiliate model in place for influencers driving sales on behalf of brands via Instagram Checkout. But savvy influencers and creators are likely to be charging extra for this additional level of product endorsement.

With over 200 million users visiting at least one business profile daily, and 83% of users discovering new products and services on the platform, it’s no surprise that Instagram is making moves to connect the dots between brands and customers.

And while Instagram is still in the process of rolling out some of these features globally. The future seems to be promising for brands, businesses, and influencers trying to make sales with Instagram Checkout!

What Are the Advantages of Instagram Checkout for Business

There’s no doubt that Instagram Checkout comes with a ton of advantages for businesses and brands on Instagram. And even more so if you’re an early adopter of the function!

The ability to drive your viewers from browsing to purchasing in just some quick clicks can have a huge effect on your conversion rate. Because it creates a seamless experience for your customers.

Plus, early adopters of Instagram Checkout can benefit from all of the additional exposure opportunities within the Instagram app.

For instance, when customers click on the “Shop” tab from the Instagram Explore page, there are numerous curated edits that showcase products from Checkout-enabled brands.

instagram checkout

Instagram’s new @shop account (with over 200K followers) also features brands that are embracing Instagram Shopping tools — creating an enormous opportunity to reach potential new customers.

However, despite such obvious advantages, Instagram Checkout won’t be for everyone.

For some, Instagram’s transaction fees could also be a cause for concern. According to their Business Help Center, the selling fee is 5% per shipment or a flat fee of $0.40 for shipments of $8.00 or less.

And Instagram Checkout can also mean brands lose out on valuable customer data (such as emails). Because all communications are handled by Instagram rather than the brand directly.

Fortunately, there are additional ways to drive traffic and make sales on Instagram!

For instance, the link in your bio is super simple to seek out and readily clickable. It makes it one of the most valuable traffic drivers on your Instagram profile.

And the good news is, with Link in bio, you’ll be able to turn your whole Instagram feed into a clickable landing page that updates with every new post you share.

This means you’ll be able to share multiple hyperlinks to your products for every Instagram post you publish.

With a totally optimized link on your bio driving traffic to your website and the easily shoppable Instagram Checkout function (when it rolls out internationally), you’ve got all grounds covered for making sales on the app!

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