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Instagram Introduces In-App Checkout and No Transaction Fees! Bye-Bye Shopify

Seems like this might be the end of all third party checkout platforms, including Shopify. Instagram, IG or a.k.a. “The Gram,” is getting better by the day or they’re just simply getting better at getting users to stay on the platform for as long as possible. On March 19, 2019 Instagram revealed a “shopping cart” feature that will allow users to purchase products without having to leave the app or use any other third party applications.

When you tap to view a product from a brand’s shopping post, you’ll see a ‘Checkout on Instagram’ button on the product page. Tap it to select from various options such as size or color, then you’ll proceed to payment without leaving Instagram. You’ll only need to enter your name, email, billing information, and shipping address the first time you check out. It is very simple to use.

Currently, the “Checkout on Instagram” feature is in closed beta for businesses and is available to users only in the U.S. The feature is also only available to certain premiums brands: Adidas, Anastasia Beverly Hills, Balmain, Burberry, ColourPop, Dior, H&M, Huda Beauty, KKW, Kylie Cosmetics, MAC Cosmetics, Michael Kors, NARS, Nike, NYX, Oscar de la Renta, Ouai Hair, Outdoor Voices, Prada, Revolve, Uniqlo, Warby Parker, Zara.

Consumers will not be charged a fee for making purchases through the Instagram feature but instead, the app will charge brands and sellers a fee to help fund programs and products that help make checkout possible, as well as offset transaction-related expenses.

How big is this news? Well, Instagram has about one billion monthly users and when brands do their shopping posts, 130 million users usually tap on the product tags on a daily basis. This feature will open the door for brands to have higher purchase conversion rates and it will certainly provide additional revenue that will go towards Instagram’s ad earnings.

Users are able to make payments with PayPal, Visa, Mastercard, American Express or their Discover card. In addition, the platform is planning to allow brands and sellers to eventually integrate BigCommerce, CommerceHub, Shopify, and Channel Advisor along with other options with the Checkout feature.

Imagine Amazon as a social media platform because that’s surely the journey this new feature is directing Instagram towards. And as a Facebook-owned app, Instagram will continue to grow and grow. IG or a.k.a. The Gram is gearing up to be an essential platform for anyone and everyone with internet connection, a mobile device and a product to sell. And brand wishing to be successful in this day and age will certainly take advantage of the new in-app checkout feature.

Social Media Marketing Instagram Checkout
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Marketing Team

Teodora’s innovative vision and 25 years of experience in marketing bring fresh ideas in establishing, promoting, and maintaining brands to generate business. This includes high-tech digital marketing, concept development, website development, production and distribution of media, print materials such as brochures, ads, direct mail pieces, videos, special events, and social media campaigns. She is the #1 certified social media professional in Miami by years of experience with a proven marketing track record of success in the areas of real estate, retail, legal, medical, and financial service industries. Follow Teodora on Instagram @teodorathompson