How Instagram checkout works

Instagram has changed the way we consume fashion, food, and even entertainment. Most importantly, it has become a powerful window display for a new generation of brands and shoppers. It was inevitable for Instagram to get into mobile commerce. Late in March 2019, Instagram introduced the checkout feature, which allows consumers to purchase products without leaving the app. This new initiative is in closed beta for businesses, and currently available to the US market only.

How it works for the consumer

Checkout tags will show up on brands’ stories and feed. Instagram did not specify whether the tag could appear through influencer’s posts. When users tap the post to reveal the product tag, they will see a checkout option that replaces the current “view on website”. On their first purchase only, they will enter their payment information, which will be saved for future purchases. After their order, users will be able to track the package with a new “Orders” section on their profile with options to return, contact the merchant, or cancel the order.

How it works for the seller

In addition to having a more appealing ad platform, Instagram will generate revenue by charging the seller a nominal fee per transaction. While the selling fee hasn’t been revealed, Instagram did communicate that prices will not change for consumers. This means that sellers will have to cut their margin instead.
Instagram is accelerating mobile commerce. Will you be ahead of your competitors and conquer the “Social shopping” market?

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