Instagram Checkout has the capacity to generate $10 Billion in revenue by 2021. Digital Silk broke down why the new tool will spur a significant change and opportunity for eBusinesses in eCommerce, advertising, payable services and social media
Over 200 million Instagram users visit at least one business profile per day, 130 million use the Shoppable tag and 80% of users have bought something off the platform.
The platform has become an important marketing and sales tool for brands worldwide.
Instagram Checkout tool is the natural extension to Instagram Shoppable. Launched to a beta test group in March 2019, the tool remains available only to a group of select online retailers. However, it is expected to roll out for commercial use soon.
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Instagram Checkout allows people to shop from posts directly without leaving the platform, reducing the steps to purchase, and simplifying the shopping process.
It is estimated that Instagram Checkout has the capacity to generate $10 billion in revenue by 2021.
The current eCommerce pain points Instagram Checkout is expected to solve are:
- Consumers abandoning carts due to slow loading sites
- Tedious checkout processes
- Managing multiple store accounts
- Issues with credit card information data security
- Unverified trustworthiness of products
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Instagram Checkout allows retailers to sell their products simply and efficiently. It advances the shopping experience by:
1. Promoting products directly
This feature allows brands and sellers to advertise their products to a potential audience of roughly one billion users, making shopping a seamless experience.
2. Exposes products to users with an impulsive purchase intent
Intent-marketing, which is reflects marketing on platforms like Google and Facebook, aims at buyers’ intent. Instagram’s position triggers subconscious desire which translates into impulsive purchasing.
Instagram Checkout will provide a new sales channel for eCommerce brands – one that dramatically reduces the steps to purchase, making the process more efficient and improving users’ shopping experience.
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