Is it great to shop directly on social platforms? Instagram Checkout tells you that it’s not that simple

In March 2019, Instagram launched Instagram Checkout in collaboration with 26 big brands including Prada and Warby Parker . This feature allows users to complete the checkout process without leaving the Instagram application, thus helping brands convert Instagram users into customers.

Then, in August 2020, Instagram announced that all eligible businesses and creators in the United States would have free access to the checkout feature.

Two years have passed. Will Instagram Checkout’s former big-name allies still choose to stand behind Instagram?

The truth doesn't seem to be that pleasant.

Compared to letting customers check out directly on Instagram, big brands actually prefer to guide customers to their own official websites. According to the latest website survey by digiday, all the first 26 big-name partners using Instagram, including Prada, Dior and Ouai Hair, directly linked their advertising on the platform to their respective brands’ official websites, rather than completing the final order and payment process within Instagram.

Some brands that still use Instagram Checkout use it to sell lower-priced accessories . Warby Parker, one of the original partners, currently only uses Instagram Checkout to sell non-prescription sunglasses and accessories including carrying cases and cleaning tools.

Now that TikTok is also promoting in-app shopping, the trend of social media doing e-commerce is unstoppable. Why are these big brands going against the trend?

Ultimately, it is driven by interests.

According to digiday, brands may miss out on valuable customer data, such as email addresses , when using Instagram Checkout, even though the checkout page says that the customer's contact information will be shared with the seller. This is part of the reason why brands choose to abandon Instagram Checkout and link products directly to their official websites to ensure that brands can obtain their emails when users consume.

One head of social strategy at a digital agency said that perhaps more than 50% of clients are trying to learn about Instagram Checkout, but less than 10% of brands have actually used the tool.

“ Brands are connecting with Instagram to connect with brands,” said Dan Brewster, vice president of marketing at e-commerce management company Scalefast.   The real struggle for Checkout is in the battle for customer relationships . When consumers complete purchases directly using Instagram , their information ( billing, shipping and payment information, etc. ) is stored in the app, and brands don’t always have access to that customer information . This not only costs brands the opportunity to gain access to potentially loyal consumers’ email addresses, but also the ability to build intimate relationships with customers through direct and personalized marketing . ”

It is not clear how many accounts have been opened for Instagram Checkout, but DTC brands may have a higher share. An executive at performance marketing agency Digishopgirl pointed out: "Despite the high demand for shopping features on social media, trust issues still exist. Users don't really dare to register their credit card information on Instagram, and in order to avoid buying counterfeit goods, consumers are more inclined to check the store's official website. "

After this analysis, the emergence of these problems seems reasonable. After all, no system is without weaknesses. Sellers themselves must also make a good trade-off. Perhaps they can formulate a variety of social media sales strategies in stages to maximize profits while promoting brand development!

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