Is It Good To Shop Directly On Social Platforms?

Instagram launched Instagram Checkout in March 2019 in conjunction with 26 big brands such as Prada and Warby Parker. This feature allows users to complete the checkout purchase process without leaving the Instagram application, thereby helping brands convert Instagram users into customers.

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

Two years have passed. Will the big-name allies of Instagram Checkout still choose to stand behind Instagram now?

The truth doesn't seem to be that popular.

Rather than letting customers check out directly on Instagram, big brands actually prefer to direct customers to their official websites. According to digiday’s latest website survey, all the first 26 big-name partners to use Instagram, including Prada, Dior and Ouai Hair, have direct links to their respective brands’ official websites for their advertising campaigns on the platform, rather than completing the final work within Instagram. of ordering and payment.

Some brands that still use Instagram Checkout use it to sell lower-priced accessories, such as Warby Parker, one of the original partner brands. It currently only uses Instagram Checkout to sell non-prescription sunglasses and includes suitcases and cleaning tools. Accessories included.

Now that TikTok is also promoting in-app shopping, the trend of social media for e-commerce has become unstoppable. Why do these big names want to do the opposite?

In the final analysis, it is still driven by interests.

According to digiday website analysis, brands may miss out on valuable customer data, such as email addresses, when using Instagram Checkout, even though the checkout page will say that the customer's contact information will be shared with the seller. This is part of the reason why brands are opting out of Instagram Checkout and linking products directly to their own websites, ensuring they can capture users’ emails at the point of purchase.

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

Dan Brewster, vice president of marketing at e-commerce management company Scalefast, said: “The real struggle for brands with Instagram Checkout is the battle for customer relationships. When consumers use Instagram directly to complete a purchase, their information (billing, shipping and payment information, etc.) is stored in the app, and brands don’t always have access to this customer information. Not only does this cost brands the opportunity to capture the emails of potentially loyal consumers, it also loses the opportunity to build intimacy with customers through direct and personalized marketing The ability to relate.”

It’s unclear the specific number of accounts opened by Instagram Checkout, but DTC brands may have a higher proportion. An executive from Digishopgirl, a performance marketing agency, pointed out: "Despite the high demand for social media shopping functions, trust issues still exist. Users do not really dare to register credit card information on the Instagram social platform, and in order to avoid buying For fakes, consumers are more likely to go to the store’s official website to check.”

After this analysis, the emergence of these problems seems to be reasonable. After all, no system is without weaknesses. Sellers themselves should also make trade-offs, and may be able to formulate diversified social media sales strategies in stages to maximize profits while promoting brand development!