by Aglaé Dancette
May 24, 2019

Instagram, the future of e-commerce

In a few years, Instagram has become the most influent platforms of the Internet. The users open the app several times a day to follow the updates of their friends and personalities they like. Which leads to admiring the dress this one is wearing or the watch this guy has. Basically, the Instagram economic stake is now huge.

“Thanks to its very big audience, Instagram wants to go further and one says they have set up a multi-years plan of action to push and facilitate even more the purchases on the platform.”

An e-commerce shift

Instagram is the social media reference in term of transforming a virtual community into a real successful business. Being the most visual and creative social network of them all, Instagram has been exploited by the brands that understood what’s at stake. Companies are more and more developing strategies of influence marketing collaborating with influencers who have big communities with a high engagement rate. Now, people get paid to publish sponsored posts and it all relies in an exchange of visibility between the brands and the influencers.

Over the last months, Instagram has done a radical shift to encourage the purchases for the users even more directly and to increase the brands presence on the platform. First of all, it is now possible to create sponsored contents that appear on the users feed according to their affinities, as it was already done on Facebook. Then, advertisement also recently appeared in the Instagram stories : there is automatically a commercial video between the stories of two people. Also, since 2016, there is a feature that allows to tag a product on a post. This way, a potential client can see the details and the price of the product just by clicking on it or can be redirected to the brand’s website to make a purchase.

Instagram Checkout, the latest innovation

Thanks to its very big audience, Instagram wants to go further and one says they have set up a multi-years plan of action to push and facilitate even more the purchases on the platform. The latest innovation that is currently being tested is Instagram Checkout. On the 9th of May, 50 influencers, designers and magazines including Chiara Ferragni, Kylie Jenner, Nike or Vogue, got an access to this new feature. The idea is simple : the possibility to shop the products tagged in a post or in a story directly from Instagram, without leaving the app.

Instagram would get a cut for each sale made on the platform. The challenge is huge as one says that Instagram could make over 10$ billions from that feature by 2021. In exchange of what, Instagram could collect a lot of personal informations very interesting for the brands. The real question is how the companies will adjust their communication if the customers don’t go on their own website at all anymore. They’ll have to think about new customers experiences and new ways of bonding with their target. Also, we’ll see if the users get used to this feature and if it truly becomes the new way of shopping. Let’s wait and see in the next few months is the first trial of Instagram Checkout is a success, and if it is launched on a bigger scale !