You can now purchase those alluring shoes you see on Instagram right from the app itself, thanks to the latest evolution of its shopping service. Titled “Checkout with Instagram”, the new service lets you choose size and color as well as make payment without leaving the app. The service is initially available in the US with more than 20 brands, including Adidas, Uniqlo, Prada, Dior, and Burberry.
To purchase an item through Instagram, you’ve to click on the “Checkout” button on the post. The app will then ask you to enter your details – name, email, billing details and shipping address. Once done, you can securely make the payment. Updates on shipment and delivery will be issued through a new “Orders” section of your Instagram profile. You also get options to cancel, initiate a return or contact the merchant.
Payment options include PayPal, Visa, Mastercard, American Express or Discover. Instagram plans to allow merchants to integrate their Shopify, BigCommerce, ChannelAdvisor, CommerceHub and other tools with the Checkout feature. It will not share the actual payment info with the merchants, but only the details necessary to fulfill an order.
Instagram opens a whole new revenue stream
Instagram is all set to get a boost on its ad revenues. The new Checkout service could be a gold mine for the popular photo-sharing app. While the Checkout buttons will only be available on organic posts from the launch partners initially, there is no reason why Instagram would not start showing Checkout-equipped ads.
Even on organic posts, Instagram will be charging a fee from the sellers. Instagram refused to disclose the exact fees, but confirmed that no convenience fee will be charged from the users (buyers).
“We will introduce a selling fee to help fund programs and products that help make checkout possible, as well as offset transaction-related expenses. We are testing a selling fee with businesses during the closed beta. It will not change the price of the items for consumers,” an Instagram spokesperson told TechCrunch.
As of now, the Checkout button will be available on feed posts, Stories and Explore content from the following brands: Adidas, Anastasia Beverly Hills, Balmain, Burberry, ColourPop, Dior, Huda Beauty, H&M, KKW Beauty, Kylie Cosmetics, MAC Cosmetics, Michael Kors, NARS, Nike, NYX Cosmetics, Oscar de la Renta, Outdoor Voices, Ouai Hair, Prada, Revolve, Uniqlo, Warby Parker and Zara. Instagram will be opening the butto to more businesses in the future, possibly after the closed beta ends.