On Tuesday March 19 Instagram announced of a new feature in-app checkout. Isn’t it exciting? Now you don’t have to go to another website of a brand to make a purchase, but can seamlessly do it on IG. Now this function is only available in a testing regime for 23 business in the US, but expected to expand soon enough.
Now businesses have a whole new selling channel, which gives them access to more than 1 billion users. Moreover, it addresses one of the pain points that is a website creation. For a small business it might be long, expensive, and cumbersome to create a whole new good e-commerce website and make people to go there. When the feature is launched for the big audience, they will only need to create an Instagram account.
What is interesting, that at the rise of Instagram nobody expected it to be such a great business/advertising platform. Maybe someone did... It seems that IG slowly moves towards WeChat politics of "all in one". Now we have not only option of posting pictures & videos, but also of watching IG TV, chatting, and even buying items. The more services, the more people are attracted and tied up to the app, the larger is potential customer base.
What I do believe in is people’s laziness. Customers do really appreciate products/services that make their life easier. When on brands’ websites cart abandonment rates are high, they are going to be lower for IG potential buyers, because the procedure is easier.
It is expected that with this novelty a whole new bunch of advertising techniques will emerge on Instagram. Companies will start to think not only about number of followers and engagement level, but also conversion rate, some kind of cart abandonment levels, etc. Definitely instagram will leverage this opportunity!
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