“Checkout” launched this week after the platform first began testing ecommerce features in 2016.
Consumers in the US will now be able to buy some products directly from Instagram without needing to leave the app. The beta program called Checkout will enable users to pay for products on Instagram, with payments processed through PayPal.
Adidas and Burberry are among the twenty brands partnering with Instagram in a limited trial for the new feature. The move will see the photo and video-sharing social network take a “small cut” of each sale made on the app and could significantly increase online sales for direct-to-consumer brands.
But it is still unclear if the Facebook-owned platform will allow brands access to the customer data, potentially hurting CRM and insights into their user base. Born Social’s Calum McMahon commented that, while it will make shopping easier, the feature is unlikely to drastically change revenue from Instagram overnight.
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