Instagram moved to capture a higher share of social commerce sales by adding a new payment feature in direct messages. The Meta-owned platform just launched a new social buying tool that makes buying products on Instagram easier. The Instagram payment feature allows shoppers to message a brand directly and then pay and track their order from the same chat.
Social commerce stats
Before exploring Instagram’s new payment tool, let’s look at the growth of social commerce to understand why Instagram is investing in it.
Statistics suggest social commerce is here to stay, and it’s taking root quickly. Experts predict social commerce to grow three times as fast as traditional e-commerce.
The chart below shows 108 million American shoppers will make regular purchases via social media by 2025, representing 37.9% of the population, according to Insider Intelligence.
With so many shoppers using social media to discover products, research, and watch reviews, it makes sense for consumers to purchase there too.
Instagram launches Payments in Chat
Instagram has introduced the Payments in Chat feature, which gives small-business owners the chance to make sales via direct messages or DMs.
How it works
A shopper reaches out to a business, asking about a product. The business responds, perhaps with product availability or sizing information. If the shopper is interested in making a purchase, the business can send a payment request to the shopper in the chat. Payment is collected, and the company sends the product.
The same thread can be updated with tracking information or as a customer support window to facilitate questions once a product is received.
The benefits
This new feature gives shoppers and brands a chance to connect and make sales easily. The benefits of such a feature include:
- A streamlined checkout: Consumers can go from browsing to chatting to buying, all by sending a company a DM.
- Businesses have another way to make sales: Any business can use it after a short setup process. The feature provides another way for businesses to connect with customers and make direct sales.
- Personalized attention: A DM is a personalized message, which means customers get one-on-one attention from a brand they love.
Setting up Payment in Chat
Any business can use this new payment feature, but there is a setup process. A business must:
- Set up an Instagram Direct account.
- Provide the necessary contact information and banking details.
- Enable the Payment in Chat feature.
Instagram Shops also invest in social commerce
During the height of the pandemic, when everyone was stuck inside, Instagram launched Instagram Shops. This gives small businesses a chance to feature products and sell them right in the app.
Consumers can visit the brand’s Instagram page and click “Shop” at the bottom to view a product catalog and make purchases.
Brands can also create shoppable posts, where each item worn by an influencer is for sale. When a shopper clicks the image, the prices for each piece appear. If they’re interested, they can make a purchase right in the app.
Do you need an Instagram Shop to use Payment in Chat?
No, an Instagram Shop isn’t necessary to use Payment in Chat.
Payment in Chat is actually aimed at small businesses that don’t have an Instagram Shop. These companies might not have the time, resources or products to create a social shop but still want the ability to streamline purchases via Instagram.
Best practices for social selling on Instagram
If you’re looking to make sales on Instagram, there are a few best practices to follow.
Research hashtags
Hashtags make your posts searchable, so be sure to research and add hashtags to your posts. Hashtags like #OOTD (outfit of the day) or #ShopLocal, for example, can help new shoppers find your products.
Give your posts a boost
If you invest time and effort into selling on Instagram, amplifying the posts via ads could be a wise choice. Attracting customers organically can be done, but ads increase your reach and visibility.
Establish influencer partnerships
One of the best ways to promote a product is to collaborate with an influencer. With influencers promoting your product and sharing it on their social channels, you can engage with a new audience. Pair an influencer campaign with Instagram’s new Payment in Chat feature and you’ve got a streamlined way to sell products.
Social channels are quickly becoming mini online stores, meaning consumers and brands must adapt to the shifting behavior. Get started with an influencer marketing campaign to make your social commerce efforts more successful.
Influencers:
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Marketers:
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