Instagram began testing a Checkout on Instagram feature back in March 2019 called Checkout on Instagram. This feature allows an Instagram user to Purchase a product taken from a Brand’s Product Feed. This feature adds a powerful eCommerce feature in Instagram’s already incredible arsenal.

Checkout on Instagram Preview
Checkout on Instagram Preview

In a recent article featured on Glossy, a Business to Consumer Marker who had the option of being in the initial 20 Brands who were granted access to the Beta in the United States breaks down the Pros and Cons of the new payment gateway from Instagram.

The Pros

Shoppable Ads

With Instagram already allowing Brands to advertise products on the platform, the ability to checkout on the platform itself adds extra weight to the platform as an eCommerce marketplace.

Shoppable Organic Posts

Anyone who has a product catalogue already linked to their Instagram account will be able to tag products and likely already are. When using Checkout, the user won’t have to leave the platform to purchase anything on their feed.

Quick Checkout for Instagram Users

Speed and ease of purchase is a key selling point on any good eCommerce website, take Amazon’s 1-Click Ordering for example. Checkout on Instagram allows the customer to save their payment and delivery details within Instagram itself, meaning if you have shopped on one Instagram account, you can check out incredibly quickly on another.

The Cons

5% Transaction Fee

Instagram, during the testing phase at least, are using a 5% Transaction Fee. To put this in context, Shopify uses a rate of 2.2% + 20p per transaction. Less than half of Instagram.

Limited Customer Data

As the customer checkouts on Instagram itself, you only receive the details necessary to complete the order. On top of this Instagram has strict guidelines on what you can do with the data. For example, you are not allowed to market to a customer who has purchased through Checkout.

No Customisation of the Checkout

Most eCommerce platforms allow some degree of customisation of the checkout; adding your logo, brand colours etc. Checkout doesn’t offer the same flexibility, Instagram controls the whole process and how it looks.

Are you sold on Checkout for Instagram?

Do you sell products or work with others who do? How do you feel about the Pros vs the Cons?

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