As we continue with our Theme of Innovation, Instagram's shopping features have evolved dramatically, transforming how brands connect with consumers in what experts consider one of the most significant commerce changes of the digital era.
Remember when Instagram launched its "Tap To Shop" feature? Today, over 500 million users tap for those details every month to find out how to buy the product featured in the image.
Instagram has harnessed the shopping power that data implies and has expanded its Instagram Checkout functionality globally with some of the world's most well-known brands, including Dior, Oscar de la Renta, Nike, Kylie Cosmetics, Adidas and H&M. The diverse range of participating brands makes for interesting speculation. It's clear that the brands that are leveraging Instagram's shopping capabilities are the ones pushing the frontier of digital innovation to have their customers associate their brands with cutting-edge technology.
We have previously spoken about how, in order to succeed as a brand, you need to be where your customer is at all times. With the growing power of Instagram and its influencers, this continues to be a game-changing piece of technology. Of the 500 million users who tap to see the product details, how many do you think make it to the website to add to bag, go through cart and finally checkout? While no statistics for that conversion rate have been officially released, a quick sweep around our office told us that most of our team use Instagram, a significant number of MindArcians click "tap to shop", but only a small percentage click through to the website, and even fewer convert to a sale.
*Image courtesy of The Verge
Instagram has closed that gap with their checkout functionality, which stores the users' payment method to their account. This creates several important opportunities for your business.
The Rise of Social Commerce
This technology allows you to target impulse buyers effectively. The shoppers who, at the supermarket, grab a chocolate bar as they're loading up the conveyor belt at the checkout, when they decide they have a sudden sugar craving which needs to be fulfilled. The shoppers who quickly succumb to the tote bag at the checkout when asked if they want to buy a bag. These are the shoppers who scroll past an image on their feed, love the dress in the post and are immediately overcome with a sudden, uncontrollable need to own said dress.
*Image courtesy of The Verge
This is actually a win-win situation for both businesses and customers. For Instagram users, this is a fantastic way to allow a quick and painless checkout, which removes all points of friction typically associated with clicking through to a website, finding the item, and navigating the traditional e-commerce flow. For businesses, the same benefit of removing the points of friction is applicable because those points are usually the things that lose the business the sale.
Integration with Other Shopping Features
Instagram has continued to expand its shopping ecosystem with features that complement the checkout functionality:
- Instagram Shop Tab: A dedicated shopping destination where users can discover products from brands they love and new businesses
- Shopping from Reels and Stories: The ability to shop directly from short-form video content
- Live Shopping: Allowing brands to showcase products in real-time streams
- Shopping with AR: Try-on experiences powered by augmented reality
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Product Collections: Curated sets of products that brands can create around themes, seasons, or campaigns
What This Means for Your Business
While commission rates vary based on partnership agreements, many brands see this as a worthwhile investment to retain customer interest and engagement at the first point of contact. The integration also offers valuable insights into customer behaviour and preferences that can inform your broader marketing strategy.
For businesses looking to maximise their Instagram shopping potential, consider these strategies:
- Create shoppable content that feels native to the platform
- Leverage user-generated content to build authenticity
- Use Instagram analytics to understand which products resonate with your audience
- Incorporate shopping tags in multiple content formats (posts, stories, reels)
- Maintain brand consistency across your Instagram shop and website
The Future of Social Commerce
Meta (formerly Facebook), as a business, has already indicated that this is just the start of their foray into the world of commerce. Meta owns a network of apps, including WhatsApp and Facebook Marketplace, and has been exploring various commerce initiatives, including digital payment solutions.
Our team will continue monitoring developments in this space, such as shipping integrations, payment methods, inventory management systems, and cross-platform shopping experiences. While nothing is confirmed, one thing is certain: the e-commerce landscape continues to evolve rapidly, with social commerce becoming an increasingly vital channel for brands of all sizes.
Looking to optimise your Instagram shopping strategy? Contact our team to learn how MindArc can help you capitalise on these powerful social commerce tools.