Social media marketing is one of the most effective ways to promote a business. While platforms like Facebook and Twitter often come to mind first, Instagram offers tremendous marketing potential that many businesses overlook. If you’re a retailer, it’s time to explore Instagram’s latest feature—Instagram Checkout—and understand how it can transform your business.
Key Instagram Business Statistics
- 1 billion people use Instagram every month – Only Facebook and YouTube surpass this number, with about 500 million users active daily.
- 88% of Instagram users are outside the United States – This makes Instagram an excellent platform for businesses with global appeal.
- 60% of Instagram users discover new products on the platform – A goldmine for Business-to-Consumer (B2C) companies.
- 75% of Instagram users take action after seeing a post – Whether it’s visiting a website or making a purchase, Instagram users are highly engaged.
- 71% of U.S. businesses use Instagram – Twitter once held this record, but Instagram has now taken the lead as a preferred business platform.
- 2 million businesses advertise on Instagram every month – If millions of brands are leveraging Instagram ads, why not yours?
- 80% of Instagram users follow at least one business – This makes Instagram a powerful hub for customer engagement and brand visibility.
How Instagram Checkout Works
With over 1 billion active users, Instagram is a powerful tool for advertising. More than 25 million brands are already on the platform. To enhance the shopping experience, Instagram introduced Instagram Checkout, allowing users to make purchases without leaving the app.
Here’s how it works:
- When users tap on a product for details, they see a “Checkout on Instagram” button.
- They can select product options (e.g., size, color) and proceed to payment—all within the Instagram app.
- On their first purchase, users enter their name, billing details, email, and shipping address.
- Instagram securely saves this information, making future purchases effortless.
- Users receive order updates, shipment notifications, and tracking info within the app.
Currently, Instagram Checkout is in closed beta, available only to 22 brands in the U.S., including Prada, Zara, Dior, H&M, and Nike. However, it is expected to expand soon.
7 Reasons Retailers Should Leverage Instagram Checkout
1. A New Revenue Stream
Retailers can significantly increase their sales by integrating Instagram Checkout into their product pages. Since Instagram is a highly visual platform, impulse purchases are more likely, making this a highly profitable channel.
2. Easy & Convenient Shopping
Instagram Checkout simplifies online shopping. With just a few taps, customers can complete a purchase without being redirected to another website, reducing friction and increasing conversions.
3. Seamless Access to Order Information
Customers can track their orders, initiate returns, get support, and cancel orders without leaving Instagram. This convenience enhances the overall shopping experience and boosts customer satisfaction.
4. Secure Transactions
Customers only need to enter their payment details once. After that, Instagram securely stores their information, enabling one-click purchases in the future. This level of security builds trust with customers.
5. Strengthens Customer Relationships
Instagram Checkout removes common barriers in online shopping—speed, convenience, and security—allowing retailers to focus on building strong connections with their audience.
6. Huge Growth Potential
Instagram is one of the fastest-growing platforms, with engagement rates higher than Twitter and Facebook. As Facebook (Instagram’s parent company) continues to expand its e-commerce capabilities, businesses that adopt Instagram Checkout early could benefit significantly.
7. The Future of Shopping
Instagram Checkout has the potential to redefine the e-commerce experience. In the future, brands will be able to use AI-driven recommendations, interactive product demos, and personalized shopping experiences—all within Instagram.
Final Thoughts
Currently, Instagram Checkout is only available to a select group of brands in the U.S., but it’s expected to roll out to more businesses soon. The best way to prepare? Build your Instagram audience now. Focus on engagement, create high-quality content, and establish a strong presence so you’re ready to capitalize on Instagram Checkout as soon as it becomes available.
By staying ahead of the curve, retailers can position themselves for increased sales, stronger customer relationships, and long-term success on one of the world’s most powerful social media platforms.