Daily Insights

Instagram Is Changing How You Shop

By: Brett Finkelstein | Mar 19, 2019

Instagram announced this morning that it’s launching an in-app checkout feature, letting users shop without leaving the app.

As of now, the feature is available only to 23 brands that have proven particularly savvy at Instagram, spanning sectors including luxury, activewear, and beauty. Notably, those accounts include both high- and low-end labels, from Burberry and Dior to Adidas and H&M.

When you browse select posts from those brands, you’ll now see a blue “Checkout on Instagram” call-to-action. Click it, and you can select your size, color, billing and shipping details. Instagram will take an undisclosed cut of sales.

Gartner L2 research confirms that these are the perfect digitally-focused brands to test out the feature. Many of the selected brands score high in their respective rankings: Michael Kors, Burberry, and Prada all landed in the top ten in Gartner L2’s Digital IQ Index: Fashion Global, while Adidas and Nike earned the top two spots in Gartner L2’s Digital IQ Index: Activewear and NYX Cosmetics earned the top rank of Genius in Gartner L2’s Digital IQ Index: Beauty US.

On social media, these brands are typically power users, with Dior earning the second-highest score for Instagram among all fashion brands. For activewear, Adidas and Nike hold their ranks within the top 10 for overall Instagram score. The sectors from which these brands were chosen tend to be both particularly active and successful on the platform thanks to their visual nature within the apparel and cosmetics industries.

For fashion brands in particular, Instagram shopping adoption has jumped from 12% to 42% year-on-year, proving that the industry is ready to leap at the opportunity to link content and commerce. It’s not just lower price points that are getting in on the action, with adoption rising to 25% among high-end prestige price-point brands. Notably, Louis Vuitton was one of the first fashion brands to leverage shoppable stories during the World Cup in 2018.

Beauty brands are also more active on Instagram, particularly when it comes to the Stories feature. During Gartner L2’s study period, 93% of beauty brands posted at least one story, up from 83% the prior year. The average brand posted 9.5 times a month, up from 5.4 times the year before. Many of them used the Swipe Up feature to drive users directly to brand sites or third-party retailers, closing the loop between content and commerce.  

The photo-sharing app has long expressed interest in working with brands, announcing last September it was looking to build a standalone app for shopping. Since then, it’s been rolling out new features to ease the path to purchase for shoppers scrolling on the app. The possibilities for an e-commerce enabled portfolio could revolutionize the way consumers shop: 22% of Instagram users log in every day, and 38% of them log on multiple times per day. Scrolling thumbs on the platform might soon be seamlessly clicking “place order” without lifting their hand — or going to a brand site.

See more: instagram , H&M , Dior , adidas , Burberry