Instagram is beginning a whole new revenue stream. Now the 130 million users who engage with product tags on Instagram’s shopping posts can buy those items without leaving the platform, thanks to reserved payment info.
“Checkout with Instagram” rolled out today in the U.S. with more than 20 top brands, including Adidas, Warby Parker, and Kylie Cosmetics which will no longer need to direct people to their websites for purchasing.
An Instagram spokesperson announced, “We will introduce a selling fee to help fund programs and products that help make checkout possible, as well as offset transaction-related expenses, We aren’t sharing the specific number right now. We are testing a selling fee with businesses during the closed beta. It will not change the price of the items for consumers.” That means Instagram wants retailers to cough up the fee in a switch for higher purchase conversion rates rather than pushing users to pay a convenience fee for purchasing through the app.
Check out tags will display on feed posts, Stories and Explore page from the brands in the limited beta that Instagram plans to ultimately open to more companies. When people tap the posts to reveal product tags and initiate one, they’ll see a Checkout with an Instagram button instead of the old “View on Website” button.
Checkout on Instagram is currently in exclusive beta for brands and accessible to users in the US. The brands below will start rolling out today and over the next weeks — and more will be coming soon!
Adidas @adidaswomen & @adidasoriginals
Anastasia Beverly Hills @anastasiabeverlyhills
Huda Beauty @hudabeautyshop
Kylie Cosmetics @kyliecosmetics
MAC Cosmetics @maccosmetics
Michael Kors @michaelkors
Nike @niketraining & @nikewomen
NYX Cosmetics @nyxcosmetics
Oscar de la Renta @oscardelarenta
Ouai Hair @theouai
Outdoor Voices @outdoorvoices
Warby Parker @warbyparker