With more than 1 billion active monthly users, your customers are already on Instagram.  So it would only make sense that Instagram has become known as an ideal fit for e-commerce marketing. Eighty-three percent of Instagram users discover new products and services on the platform. In fact, according to Facebook, every month 130 million Instagram accounts tap on a product post to learn more.

When Instagram launched Checkout back in 2019 their goal was that “Checkout enhances the shopping experience by making the purchase simple, convenient and secure.” Now that Instagram Checkout is accessible to all eligible businesses and creators in the United States, we have compiled a list of Pros and Cons to help you see if this shopping platform would be an asset to add to your revenue plan.

Pros

Mobile Optimization

With products linked straight to an organic social post or paid sponsored ad, it’s easy for the consumer to see how the product is styled and what other products can complement the look. The business can tag product links directly into the post, giving the customer the option of adding an item straight to Instagram Cart or being directed to the business’s website to browse and purchase from there. 

Reduced Clicks 

No more going to different sites for a customer to purchase items from different businesses. The customer can add the desired items from the different shops to the Instagram cart and then checkout from each individual business when they are done, without ever leaving the Instagram app.  Checkout is handled directly by Instagram, but individual checkout per business is needed for shipping and billing purposes.

Streamlined Checkout

How many times do you have to create an account, log in, enter your shipping address, credit card information, and so on for every website you want to buy something from? With Instagram Checkout your information is stored directly on Instagram. You can even save a CC or link to your PayPal account. So checking out is as easy as adding the item to your cart and clicking the place order button.

Cons

Transaction Fees

Instagram’s transaction fees may not be worth it for your company in the long run. According to their Business Help Center, the selling fee is 5% per shipment or a flat fee of $0.40 for shipments of $8.00 or less. According to a Facebook case study, Laura Dover, the Global Digital Communication Manager at Barbour, says the fees are worth it. “Since we started to use the feature, our sales from Instagram have increased by 42% and traffic to our website from Instagram is up 98%.”

No Customer Data 

What is a pro for the customer may also be a con for your business. Thanks to streamlined Instagram Checkout, brands only receive order and shipping information. The customer can enter their email address, but it is not required to place an order.  The customer will receive notifications directly from Instagram instead of the business, about order placement, containing order summary, shipment and delivery details. Even things like returns, refunds, data collection and management are also done by Instagram.

Product Catalog

The products visible to Instagram users are only accessible from a product catalog that has to be created on Facebook. The items you sell must be physical goods and your Instagram account must be set up as a business account. To make sure your business is even eligible, make sure you can answer YES to each of these questions. Bottom-line, creating a product catalog has the potential to be inconvenient and laborious to keep up if you have a large variety of product listings.

Today, social media can make or break your brand.  If you want to take the plunge and set up your Instagram Checkout, here is a how-to guide straight from the creators.  Still not sure where Instagram Checkout will fit into your current marketing plan? Schedule your free consultation today and we can help you get started.