Checkout, instagram’s new E-Commerce service.

Facebook/Instagram will try to compete with Amazon in E-Commerce by launching the feature called « Checkout ».

This will allow users to purchase a product directly on the application, accelerating the customer journey to complete the conversion tunnel for brands that use the application as a media.

 

First point : E-Commerce.

This new feature therefore aims to accelerate purchasing processes and increase the conversion rate of users.

According to Facebook’s retail experts, it takes an average of 22 clicks to complete a purchase. A long process that causes many users to give up before the end. The impact is enormous since the loss of customers during the buying process would represent 20 billion euros in losses according to Facebook.

For the test phase, 20 brands were chosen, among them:

MAC Cosmetic

  • Michael Kors
  • Uniqlo
  • Zara
  • Adidas
  • Kylie Cosmetics

We find the main verticals that are in view on Instagram, beauty, fashion, lifestyle.

The presence of Kylie Cosmetics in the list is not insignificant, it represents well the place of influence today in E-Commerce, since the brand of the influencer Kylie Jenner is next to historical brands in the sector.

In a few months we should be able to buy instantly the products that are appearing in our feeds.

Second point : digital advertising.

As Amazon takes up more and more space in the advertising market, to the detriment of Google and Facebook.

Mark Zuckerberg’s company, which remains a colossus of the sector, could also lose ground, and intends to use Instagram to reverse the trend, this new feature could change a lot of things in a very competitive market.

Indeed, if a single click makes it possible to buy a product driven by paid campaigns, there is no doubt that brands will invest more, in parallel with influencers’s partnerships.

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