Since Instagram introduced check-out in 2019, e-commerce companies have had a new way to sell products directly via the popular social media platform. The Instagram check-out offers several benefits for companies that want to increase their sales success.
One of the biggest benefits of Instagram Checkout is the easy buying process for customers. Since the purchase is processed directly within the app without the customer being redirected to an external website, the purchase process can be significantly simplified and accelerated. Customers don't have to fill out cumbersome forms or re-enter their payment details, resulting in a smooth and quick purchase process.
Case study: A customer sees a pair of shoes in an Instagram post and can buy them immediately without being redirected to an external website.
By integrating Instagram Checkout into your marketing strategy, you can increase the chances of more sales. When you share a new post with a product, your followers can buy it right away without leaving the app. This can have a positive impact on your sales figures as it allows customers to buy quickly and easily. In addition, customers will be able to make their purchases with just one click in the future, making them more likely to buy from your company again.
Case study: A fashion store notices an increase in sales figures after it has started using Instagram Checkout, as customers are less likely to cancel the purchase process. This increases the conversion rate.
Instagram check-out can improve customer engagement as customers have the opportunity to get in touch with your company directly. The buying process is becoming easier and faster, which can result in a better customer experience. In addition, by integrating feedback options into your posts, you can increase customer engagement and receive valuable feedback about your products and services. By establishing a direct channel with the customer, you can also answer questions and solve problems, resulting in improved brand loyalty.
Case study: A cosmetics company uses Instagram Stories to present new products and enables immediate purchase via Instagram Checkout, increasing customer loyalty.
The Instagram check-out also offers the opportunity to expand your target groups. Because the platform is used by millions of people, you can reach a wider audience by integrating checkout options into your posts and reach out to potential customers who haven't reached your website before. With the ability to sell products directly on Instagram, you can also reach international customers who may not be able or unwilling to shop on your website.
Case study: An artisan from Germany can sell their handmade products to customers in the USA, Canada and other countries via Instagram Checkout, significantly expanding their reach.
Advantage: Instagram Checkout can be seamlessly combined with influencer marketing strategies, which allows products to be promoted by trustworthy personalities.
Example: A beauty label works with well-known beauty influencers who show their products in their posts and stories and sell them directly via Instagram Checkout.
Advantage: Instagram uses algorithms to suggest products to users that match their interests, resulting in a personalized shopping experience.
Case study: A user who is interested in sustainable fashion is specifically shown products from brands that promote environmentally friendly practices.
By interacting directly with customers on Instagram, companies can react quickly to market trends and adapt their products accordingly.
Case study: A fashion retailer observes trend changes on Instagram and quickly adjusts its collections to stay up to date.
Instagram check-out also provides more control over sales data, as all transactions take place directly on the platform. This allows you to get detailed reports and analysis on your sales figures and products, which can help you adjust your strategies and improve your marketing and sales efforts. With the ability to track sales results directly on Instagram, you can also quickly respond to trends and changes in demand and adjust your products and services accordingly.
Case study: A sporting goods manufacturer uses Instagram data to target advertising for running shoes to users who are interested in fitness content.
Advantage: Instagram Checkout offers secure payment processing, which strengthens customer confidence in the purchase process.
Case study: Customers feel more secure buying expensive electronics because the transaction takes place within the familiar Instagram environment.
Easy product discovery
Advantage: Products can be easily discovered in posts, stories and on the Instagram shop tab, which increases visibility.
Case study: A small jewelry store is getting more attention because its products appear in the Instagram shopping feeds of users who have viewed similar items.
But how does a shop work on Instagram? In this step-by-step guide, we'll show you how to easily sell your products on Instagram.
Step 1. Account setup: First, the Instagram account must be converted to a Business or Creator account. This gives access to business features, including Instagram shopping.
Step 2 Connect catalog: The Instagram account must then be connected to a Facebook shop. To do this, a product catalog is created on Facebook, which is then synchronized with Instagram.
Step 3 Mark products: Once the catalog is connected, posts, stories, and even reels can be created with products from the catalog. Products can be marked directly in images or videos, similar to tagging people.
Step 4 Use shopping features: Instagram offers various shopping features, such as the shop tab on the profile, where customers can browse through the entire range of products. There is also the option to place shopping posts in the Explore section for greater reach.
Step 5. buying process: Customers can click on the flagged products for more information and are then either led directly to the purchase in the Instagram app or redirected to the company's website to complete the purchase.
Step 6. Analysis and optimization: Instagram provides detailed insights into the performance of shopping posts and stories. This data can be used to optimize future content and strategies.
Step 7. promotion: Companies can also use sponsored posts and stories to present their products to a larger audience and increase sales.
Tip: It's important to note that Instagram has specific guidelines and requirements for selling products, and not all products or services are approved for sale on Instagram
Payments are always processed in cooperation with PayPal. Marcel Hollerbach, Chief Marketing Officer at Productsup, said the following about this change:
”With the new shoppable posts, Facebook is now directly addressing consumers' daily usage patterns [...] With this 'direct to consumer' approach, the company is attacking Amazon head-on and at the same time weakening the position of retailers in the previous e-commerce value chain. Badly positioned retail companies in particular will suffer from Instagram shopping and hand over sales to companies that have experience with Instagram and can respond to the new offer in an agile manner. The beneficiaries include brands and retailers who know how to authentically address users in the feed through inspiring and emotion-driven content — for example from the living or fashion sector — and, of course, the influencers, who will open up a new major source of revenue here.”
Setting up an Instagram shop is, just like using Instagram itself, free of charge. So there are currently no Instagram shop costs.
In summary, Instagram Checkout offers a variety of benefits for small and medium-sized e-commerce companies. The ability to simplify the buying process, improve customer engagement, expand audiences, and have more control over sales data can help you increase your sales success. If you want to build a successful Instagram store, you should ensure that your products are presented attractively, that you use relevant hashtags, and that you appeal well to your target groups. By taking these tips into account and using Instagram Checkout, you can build an effective sales platform and take your e-commerce strategy to a new level.
