Instagram has come up with a brand new way for businesses to open a new revenue stream. In the past Instagram had allowed businesses to direct traffic to their websites now it’s gone one step further. The globally popular website has decided to make generating sales so much easier by becoming a sales channel.

What this ultimately means is that customers do not have to leave the app in order to buy something. This potentially means you could have a lot more sales if the customer wants to buy your product there and then.

The “Checkout on Instagram” feature is displayed as a blue button and is shown when a user taps on a product in one of your posts. As soon as the button is tapped they have the chance to select the size and colour of the item (if applicable). Users add their payment and contact details and can expect their new item to arrive at their door soon.

Helping to Win More Sales

A recent report released by Facebook said that almost 9 out of 10 people had taken some action after they’d seen a product advertised on Instagram. The action they’d taken consisted of searching for more information, visiting the website, or making a purchase online. Other forms of action include speaking to someone about the product, visiting a store, or following a brand’s account.

While only 46% of people purchased the product before Instagram enabled a checkout feature, things could change. Chances are that the percentage will rise as it won’t take as many steps to reach the checkout option. The easier it is to buy something the more likely a user is to go ahead with a purchase.

Beta Testing

At the time of writing, beta testing was only taking place in the United States which means most people cannot access the feature as yet but time will tell. 23 brands have signed up for the Checkout test so there’s already a market out there.

What Will it Cost you?

Instagram will take a portion of each sale from you, however, it’s too soon to say how much this will be. When this feature becomes more widely available there may be more information on this.

For now, Instagram’s Checkout feature is likely to be a hit for many businesses and could ultimately help every business win more sales.