Well, unless you are one of 20 or so global super-brands – not much.
Instagram Checkout has announced that consumers will be able to shop for products directly from the app, including checking out and paying with a card.
Some in the Ecommerce world have been quick to say things like; “This is a gamechanger” (Yes and no) and “This is the end of Shopify” (Maybe, but perhaps the opposite.)
The reality is that if you are a merchant outside North America, this might be just another feature that you would love to have, but might have to wait a while for.
So let’s unpack it…
Is Instagram Checkout is a Gamechanger for Ecommerce Consumers?
Yes, for the masses.
Anything that reduces friction for the consumer is a good thing. Allowing them to checkout without an intermediate ‘store’ and ‘checkout’ should increase conversion for products – if the brand is known and trusted.
Initially Instagram Checkout will be offered by brands like Zara, Adidas, Huda Beauty and Micheal Kors. That makes sense. It will be a while before customers start buying directly from wesellbags35643 on Instagram.
There are still many consumers that don’t understand that some products on Amazon are sold by 3rd parties. When the product I bought on Instagram doesn’t arrive on time or I have a problem – who do I complain to? Do I have to use Instagram’s primitive private messaging?
Instagram Checkout will be great for shopping by serendipity, or if you are brand loyal, or if you are influenced by Influencers… but not if you use search or you rely on reviews – as millions of shoppers do.
Instagram search is rudimentary at best. Imagine trying to do a price comparison on Instagram, or trying to find a merchant ‘near me’.
Cross-Border ecommerce on Instagram could be total nightmare. Okay. I know I an edge case. I live in Dubai, but regularly work in Bahrain, Melbourne and Athens Greece. I order from the USA and the UK and have things delivered to Dubai.
Instagram is a global platform. I can follow accounts from anywhere. But – are those accounts set up to deliver to me – and how much is it going to cost? IF they can’t – how do I find an alternative?
Is Instagram Checkout the end of Shopify (or other Ecommerce Platforms?)
Probably Not.
Anyone who has ever tried to run a promotion on Instagram knows that the back-end interface is pretty clunky. Some things I have to do on the mobile client, some things I have to do through my Facebook business account. Some things are only available in certain markets. Some things I can only do if I have a certain amount of followers.
I’m fairly sure that Instagram is not going to be the place where I manage my product listings, my stock, my pricing, my promotions or reviews.
So all of that is going to have to sit somewhere else – like an Order Management System (OMS)? Most businesses who are looking at Shopify are not in the market for an OMS, so Shopify or ECWID or a ‘Headless’ Ecommerce platform will be required.
And let’s put this into context for a moment. Instagram is big, but I wouldn’t recommend any business – large or small to use Instagram as the ONLY channel.
Especially when you are giving up your relationship with the customer. Just like Amazon – Instagram will provide only the most basic details about the customer to the merchant. All of that amazing data, that you use for personalisation and upsell and crosssell and retargeting provided by your Ecommerce engine will be taken away from you.
Will Instagram Checkout change Ecommerce for Merchants in MENA.
Yes. It could mean the end of ‘Cash on Delivery’ and that would be great!
One of the biggest hurdles for businesses trying to do Ecommerce in the MENA region is payments. Getting a bank account, choosing a payment gateway, processing payments is the biggest headache for those getting started.
Instagram may be one of the only brands large enough, and trusted enough for consumers to give over their payment information to.
If Instagram forces consumers to use a card or an online wallet to pay, then this is a game-changer… if it ever makes it to the GCC or MENA.