In July 2020 Facebook owned social media giant; Instagram, began testing a very new kind of navigation on its mobile applications. This new navigation which allows Instagram’s users to shop with top creators and brands directly with one tap in the navigation bar, is expected to give the platform’s shopping feature a more important position. Users will also have the ability to sort products by categories within Instagram Explore’s Shop and also check out directly.
With the launch of the revamped Shop feature powered by Facebook Pay, Instagram is being more deliberate with its plan to position itself as a convenient shopping alternative.
Instagram Shop and Facebook Pay were first announced in 2019, but were not rolled out until this year, as the platform decided to first test out the Shop tab.
The new and improved Instagram Shop is essentially designed to boost users’ discovery of products, creators and brands. The revamped Instagram Shop experience is also personalized to the end user, including a ‘Suggested For You’ section at the bottom. Rows with your favorite creators and brands are also available below images at the top of your smartphone’s screen.
Instagram Shop was created as a direct answer to users who were already using the Social Media platform to source for new products to purchase. A substantial number of users on the photo and video sharing platform, upload creative content that includes, music, interior decorations, beauty products, photography, fashion, modeling and more. The byproduct of that content became various products getting exhibited, advertised and put up for sale on the platforms.
Facebook Pay on the other hand, was announced as a way to ensure secure transactions across WhatsApp, Instagram and Facebook Messenger. Facebook Pay will allow users (United States users only for now), donate to the businesses they patronize especially if they have been affected by the ongoing pandemic and also pay for their purchases. If the business the user is patronizing uses Instagram’s very own Checkout feature, a selling fee will be in play. The selling fee is currently 5 percent per shipment or a flat fee of 0.40 Dollars for shipments of 8 Dollars and below. The selling fee also includes the cost of processing payments, it applies to all checkout transactions for all the product categories on Instagram and Facebook as well, includes taxes and also helps the platform fund other features for a good selling and buying experience.
This development is most likely, going to create a new stream of revenue for the social media conglomerate that is Facebook. Especially as online shopping has exploded due to the ongoing pandemic.
The revamped Shop feature on Instagram powered by Facebook Pay is currently only available in the United Stated. The rest of the world is expected to follow shortly after.
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