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Instagram Checkout: Everything You Need to Know For E-Commerce Success

Angela Serednicki
January 26, 2021
Last Updated On
July 18, 2022
Mini shopping cart filled with large skincare products

Shopping on Instagram has become a defining feature of the much-loved channel. Since its launch in 2019, Instagram Checkout has made it easier than ever for users to discover and buy products while browsing the app.

Fast forward to 2021, and to say Instagram Checkout is a success would be an understatement. Over 30 million accounts tap on shopping posts to learn more about products they see each month. And with 72% of users making purchase decisions based on products from the app, Instagram Checkout is transforming how brands sell and users shop on social media. As brands continue to leverage Instagram’s e-commerce capabilities, industry leaders need to double down on data to stay ahead in this competitive marketplace.

A 50% increase in online shopping within the past year means brands can’t miss out on the opportunity to sell on Instagram. While more businesses are investing in ways to elevate their customers’ social shopping experiences, LikeShop’s unique features allow leading brands and publishers to go above and beyond their competitors. Here’s how businesses can use Instagram Checkout hand in hand with Dash Hudson’s LikeShop to convert online audiences.

What is Instagram Checkout?

Instagram has always been the place to discover new products and to stay in the know with leading brands. 80% of Instagram users already follow at least one business on the platform. The app’s pivot to an e-commerce-friendly platform is based on two integral features: Instagram Checkout and Shopping.

Instagram Checkout allows users to buy a product directly from a post without leaving the app. It’s simple: once a user taps on a product in a shoppable post, they’ll see a blue “Checkout on Instagram” button. Afterward, users can select different product specifications such as color and size. From there, they need to fill out their name, email, billing information, and shipping address, then simply tap the “Place Order” button to complete the purchase. This streamlined process makes it easy for customers to go from discovery to checkout.

What is Instagram Shopping?

Much like Instagram Checkout, in the sense that you are selling on Instagram, Instagram Shopping allows users to purchase items from Instagram via linked content. Posts, videos, and stories can be tagged with your product for your audience to learn more. A user clicks the link to go to your Instagram storefront where they can find the product description, price, and more photos. From there they can 'view your website' to make the purchase. The main difference between Instagram shopping vs Instagram checkout is Instagram Checkout transactions happen on the app whereas, Instagram Shopping transactions happen elsewhere.

Instagram Product Tags and Product Stickers: The Benefits of Instagram Checkout for Business

The best e-commerce marketing persuades followers without being pushy. With this in mind, the product tag feature on Instagram Checkout makes it easy for businesses to highlight products in their feed. Product tags are much more subtle than relying solely on calls to action.

Product tags and product stickers are best described as a virtual storefront. Product tags are used for shoppable content in-feed, while product stickers are the Stories solution. When brands add product tags or stickers, users can hover over a specific item on an image to learn the product’s name and price. Brands can tag up to five different products per image in a shoppable post. For product stickers, brands must focus on one sticker per story.

Learning these critical details about a product during discovery helps personalize and facilitate the shopping process. Whether it’s through the feed or through a story, access to the price of an item or the different colours and sizes available cuts down on the need to browse or search and sends customers directly to the checkout.

Instagram Storefront: Digitally Integrate the In-Store Experience

A branded Instagram profile is more than just another avenue to drive sales. It gives brands an unparalleled opportunity to reach users, engage audiences, and build a loyal following. For customers missing the experiential aspects of shopping, LikeShop ties in brand identity and seamlessly directs them wherever you want them to go, much like a strategically laid-out retail space.

In tandem with Instagram’s native shopping features, LikeShop acts as a bridge between the product and the unique narrative your brand has crafted. For example, customers can shop a product on Instagram and follow your LikeShop link to a tutorial on how to use it—without ever leaving the app. It’s never been easier to provide a holistic picture of your brand, its ethos, and offering in a way that feels natural to the user.

Instagram Checkout: Dive into Deep Insights

There are more than 25 million businesses on Instagram, which is why marketers must focus on a dedicated strategy based on personalized insights to stand out from the crowd in this saturated market. Lack of customer data can be a roadblock for brands solely relying on the current Instagram Checkout and Shopping integrations, and brands need to harness the power of data and elevate their e-commerce strategies.

This is also where LikeShop comes into play. As a monetizing solution, LikeShop allows users to make the most of Instagram’s selling functionality with the added benefits of key metrics. Plus, comprehensive reporting means marketers can identify strengths, weaknesses, and opportunities at a glance, including which creative resonates best with audiences, which posts drive the most revenue, and the CTAs that encourage users to buy.

Building trust with followers and using data to identify audiences' needs should be a priority for all e-commerce brands. Those that create a superior user experience based on personalized analytics are more likely to increase sales, boost engagement rates, and continue to grow. Using Instagram Checkout and Likeshop hand in hand is the simplest way brands can optimize social strategies to their full potential and convert followers into loyal customers.

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