Instagram’s desire to play a bigger role in consumers’ online shopping behaviour, has been put permanently to rest.
Adam Mosseri, head of Instagram said in an interview published in the Financial Times, “I am aiming to “connect the dots thoughtfully” between shoppers, sellers and influencers on the app. By introducing shopping cart and checkout functions in the app, the platform could “unlock a lot of value from everyone involved.”
Since the launching of Instagram in 2010, as long been a place for brands and influencers share product and lifestyle photos, but it was only recently that it started making it easier for consumers to shop in the app. In the past few years, business profiles have been taking advantage of product tags and links in various ad formats. And earlier this year, the social media platform started trialling ‘Checkout on Instagram’, a feature that enables users to buy products without leaving the app.
Adidas, Burberry, Dior, H&M, Michael Kors, Nike, Outdoor Voices, Uniqlo and Zara are amongst the 20 retailers involved in the US-based trial, which now seems certain to roll out more widely.
Furthermore, Mosseri noted that, “hopping is a long-term plan for Instagram, and that it will require significant infrastructure, including integration with inventory systems and payment providers in different countries. This isn’t a one year thing, this is like a five to 10-year project.”
Financial Times reported that an analyst at Deutsche Bank mentioned that, Instagram could make US$10 billion shopping revenues as early as 2021.
Additionally, Analysts at SunTrust Robinson Humphrey estimated that the company will generate US$15.8 billion in advertising revenues this 2019, which is nearly a quarter of Facebook’s group total.
Mosseri is hopeful that they can increase the safety and well-being of its users considering its promising future.
Source: Inside Retail
Westpac, Kounta collaborate to speed up retail transactions Posted on: 18-07-2019
Westpac and Kounta collaborated to connect the former's Presto Smart payment terminal to the latter's PoS system using cloud-based technology.Read More
H&M trims store openings to focus investment on its online operations Posted on: 09-07-2019
H&M announced that they will open fewer stores this year because the group intends to concentrate investment on its online operations.Read More