The Impact of Instagram Checkout on eCommerce

Nov 16, 2021 10 Min Read
an eCommerce symbol

Photo by Mark König

NEWS: A helpful digital marketing strategy!

Instagram was designed to encourage people by sharing beautiful images, but that seems to be in the past. However, with the recent advent of Instagram checkout, it has become a powerful sales tool, so let's look at how it influences eCommerce.
As the pandemic has shifted consumer behaviour toward online shopping, Instagram's new checkout function has taken a larger share of Facebook's long-term eCommerce spending.

Read more: Ultimate Guide on Building Your Own Online Store

In the eCommerce industry, Instagram is a game-changer. Virtually every notable eCommerce building platform enables you to incorporate an Instagram feed into your online store. There are over 1 million monthly advertisers and 8 million company profiles on the marketplace. Instagram is quickly becoming the social media universe's hub in 2021.
Thanks to the 'Checkout on Instagram' feature, it has also become the focal point of all mobile eCommerce transactions.
The Checkout On Instagram has proven successful with eCommerce companies, creating a one-of-a-kind start-to-finish shopping experience.

Instagram Checkout

Instagram added the shoppable post option back in March 2018, allowing users to purchase products directly from the app. The Instagram user was redirected to the brand's website, where they were occasionally required to register or create a new account. 
Over an extended time or with a large number of users, this procedure could be rather burdening (imagine a situation where the user wants to buy something from three different online stores and has to register in each of them). However, Instagram handled the situation admirably, and their decision appears to be entirely appropriate for the platform.
After browsing a product from a brand's shopping post, the user sees a "Checkout on Instagram" option. They merely need to select the size or colour before closing the cart, and then they'll be taken straight to payment without ever leaving the Instagram app.
The first stage is the most difficult for the user since it is necessary to provide personal information such as their name, email, billing information, and shipping address. Strategies such as email collection will help save important data so that the next transaction will be lightning-fast.

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You can now buy a product without leaving the app if you see one you like. It's never been easier to engage in eCommerce purchases.

Instagram Checkout is easy to use, convenient, and secure.

The buyer's journey from product discovery to purchase has been substantially simplified, thanks to Instagram. As a result, the entire process of becoming inspired to receive the item will be considerably more straightforward and quicker. This could be a critical step in closing the eCommerce mobile divide.
Furthermore, the amount of people who use traditional eCommerce platforms versus social networking platforms is vastly different. According to studies, we spend approximately 142 minutes every day on social media, but just 8 to 10 minutes online shopping. As you’re operating online, it’s essential to make your eCommerce store visible to search engines such as Google. For example, if a prospect searches for “women’s shoes size 38” your category of shoes comes right up. What can help you here? Proper eCommerce SEO, a neat and clean website, and a great user experience. So make sure to read a detailed guide here to learn more about leveraging your eCommerce platform with the help of SEO.
Shopping straight in the app cuts the user's effort to a bare minimum, affecting the typically choppy shopping experience. In addition, Instagram checkout eliminates all intermediaries and provides maximum convenience with various payment alternatives.
Instagram Checkout's main benefit is that it protects merchants from abandoned shopping carts. But, unfortunately, when people sign up for each brand separately, they become frustrated and leave them.

How has Instagram influenced eCommerce?

Shoppable Instagram posts are a terrific method for businesses to exhibit products and increase sales visually. Thanks to Instagram Checkout, users may also move from inspiration to purchase without leaving the Instagram app.
It's the ideal partnership for small businesses trying to generate leads and increase their online earnings. But, it doesn't end there, either. Instagram is constantly adding new tools to make it easier for users to shop on the platform.
Consider the following data to gain a better understanding of the power of eCommerce on Instagram:

  • Last year, Instagram announced that 140 million users tap on product tags in shopping postings each month.
  • Today, more than 80% of Instagram users follow a brand or company account.
  • Approximately 70% of Instagram users claim to have discovered a product through their feed.
  • According to other studies, the average order value for Instagram-referred clients is $65.00.

Until recently, however, all transactions had to be completed on a seller's website. A user can exit the Instagram app and go to a mobile shopping basket page by tapping on a link. Cart abandonment was at an all-time high as a result of this. To avoid this, businesses need to ensure proper website protection and a great user experience.
Despite this challenging move, Instagram has been influencing users' purchasing decisions for more than three years, and this could only be the beginning.
During COVID-19, Instagram also announced several tools and features focused on helping small businesses stay viable. While in-person purchasing experiences were paused due to the lockdown and social distancing, social media quickly became a key revenue stream for merchants, brands, and small businesses worldwide, which also helped improve customer engagement for better services.

How Instagram is reshaping the world of eCommerce

1. Discovery Feeds fully curated and shoppable

Imagine entering into a store where everything on the shelves ideally suited your style, wish list, and budget – you could wind up spending a lot of money!
That's precisely what Instagram is aiming for.
Our Home feeds are personalised to our likes and dislikes, thanks to the already established and super-savvy Instagram algorithm, which surfaces stuff the algorithm thinks we'll like most to the top of our Home feed.
We're entering a curated, personalised, shoppable location to apply that concept to the new Instagram Shop feed.
Users can "Browse Shops," "Explore Guides," "See Editors Picks," and "Shop Collections" in the new shopping location, making finding inspiration and shopping straight in the Instagram app much more manageable.
Businesses could use SaaS marketing email templates to nurture users from the first interaction and provide value indefinitely. In this case, it’s essential to check things such as SPF records, high email deliverability, and a good subject line. But, Instagram has discovered a way to offer you more of what you're likely to buy based on previous interaction, the posts and companies you follow, and the engagement of people similar to you through this new feed.
There's even a "Wishlist" collection that collects all of your previously saved shoppable items.
As a brand, you can anticipate that if a user sees your shoppable post in the new Instagram Shop stream, they'll be eager to buy. So, simply by putting shoppable content to your feed, you have a real chance of gaining new Instagram followers and converting your followers (old and new) into consumers.

2. The eCommerce Experience Is Created to Encourage Impulse Purchases

It's no wonder that online commerce increased when the world went under lockdown in early 2020.
When social distancing initially began in early March, a survey by Engine indicated that consumers were spending 10-30 per cent more time online on average.
After the COVID-19 limits were released, the scroll-to-shop trend continued, especially on Instagram, where the route from exploring to purchase is easier than ever.

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Don't be put off by the name (or confused by Instagram Shop above). This new tool allows small businesses to create online stores on Facebook and Instagram, including tag products during live broadcasts.
"This is the largest move we've done yet to enable commerce across our family of apps," says Zuckerberg.
Brands may create a portfolio of products and services on Facebook Business Pages or Instagram accounts that visitors can browse, save, share, and even buy.
Instagram is arguably unequalled when it comes to serving up shoppable inspiring content – it's practically a one-of-a-kind experience where you can buy precisely what you want when you want it.
Instagram has lowered the time and effort required to spend money by assisting businesses in getting their goods in front of the right audience – it's a match made in eCommerce heaven.
Plus, this isn't limited to mega-brands. Instagram also announced that purchasing and eCommerce tools would be made available to smaller businesses and a new user group: creators.

3. Influencers Play an Important Role in the Sales Process

It's easy to understand how impulse purchases are made when we consider that Instagram is a realm where influence reigns supreme.
In the real world, we might tell our closest friends, family, and co-workers about a product we enjoyed. 
This type of word-of-mouth marketing has previously been demonstrated to be effective. In fact, according to one study, 92% of individuals prefer referrals from friends and family than any other form of promotion.
However, when we combine word-of-mouth recommendations with the influencer marketing realm of Instagram, we have a much more effective instrument to elicit an impulse purchase. 

And the power of an influencer’s comment or feedback can be a significant game-changer. 

This may interest you: Harness The Power of Influencers for Organisational Change 

There are relatively few barriers for customers to overcome before they add to cart, thanks to Instagram's deployment of Instagram shopping capabilities to creators and Shopping from Creators (where influencers can add a brand's shoppable tags to their posts as part of a paid partnership).
As a result, if you're a brand or company trying to build an online community to increase sales, Instagram should be your first stop.
And if you can incorporate influencer marketing into your approach, there's a good chance you'll be able to reach a new audience with a lot of money.

4. Is Tele-Shopping Making a Resurgent Comeback?

There's no doubt that Instagram Live has had a resurgence in popularity in recent months.

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In fact, between February and March, Facebook recorded a 70% spike in Live views as creators and companies exploring new ways to embrace the platform during social distancing.
Instagram Live products that promote local companies and communities seemed like a natural evolution for the company to deploy during this time.
Before going live, brands and creators with access to Instagram Checkout can tag products from their Facebook Shop or catalogue. Then, the featured products are displayed at the bottom of the video so that viewers may quickly learn more and make a purchase. If you have an eCommerce website, consider live stream chats and chatbots to communicate with your customers in a more human-like way and bring them over to your Instagram business page. 
This one tiny change results in a significant shift to a live retail channel similar to QVC. Viewers may now get live purchasing assistance from the host, which means you can have live Q&As with your audience, provide product data, or show product demos, all with a live purchase link at the bottom of the screen.
Not to mention that Instagram Live streams are now available on PC, bringing the TV-like experience closer.
With influencer marketing potential on Instagram only increasing, it's possible that shopping from an influencer's Instagram Live may become the standard in the not-too-distant future.
It's a win-win situation for both parties. Influencers may help brands reach a new and engaged audience by promoting and recommending their products. Consumers will communicate with brands and influencers supporting items, making significantly more informed purchasing decisions.
While other sources of online media, such as online podcasts and YouTube ads, can grow your audience, Instagram, on the other hand, can not only reach out to those audiences but also influence and complete the purchases. 
Don't overlook the value of a straightforward client journey to buy. For brands, this shopping channel-style experience might be the next big thing.
As Instagram prepares for an eCommerce future, now is the perfect time to try some new tools and capabilities.
If you're a business or artist, there are many new ways to boost sales and engage new audiences, so it's worth staying ahead of the curve now that social shopping isn't going anywhere.


The arrival of Instagram checkout is a long-awaited feature on many digital marketers' wish lists. It's a natural move for a platform that's grown into one of the most effective brand discovery engines in recent years.
Instagram checkout reflects and foreshadows eCommerce developments. However, users will benefit from the functionality since it gives a smooth end-to-end buying experience, which will enhance demand for frictionless commerce and quick fulfilment of customer needs.
Instagram Checkout is an effective digital marketing tool and eCommerce shopping platform for firms on Instagram today. In addition, because of its discovery feature, Instagram Checkout can convert new clients.
Check out Instagram; it could be a helpful digital marketing strategy for your online shopping revenue stream.

Supplementary reading: 5 Call-To-Actions for Your Ecommerce Store and Why They Work

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