Page 30 - RLI July / August 2019

RLI RETAIL INSIGHT

#Instantcheckout

In this month’s Retail Insight, Philip Belamant,
CEO of Zilch for Business takes some time out of his
schedule to discuss shopping on Instagram and what
this could mean for the ecommerce sector.

nstagram is one of the largest social media networks Retailers will have to adapt to this new outlet at speed and
in the world. At the last count at the beginning of 2019 make concerted efforts to grow their Instagram audience in
there were an estimated 24 million Instagram users in order to engage with potential users.
Ithe UK; that’s 42 per cent of the UK’s population. Now
they have announced that they will be releasing Instagram RISE Of ThE EcOmmERcE SOLE TRAdER
Checkout which lets users buy items without even leaving This update has the potential to essentially turn all
the app. At present, the app is only available to a select few Instagram profiles into sole, independent ecommerce
influencers like Kim Kardashian-West and Kylie Jenner. But traders. Being able to tag products and sell directly through
as this gets rolled out wider what could it mean for the the app could mean sellers no longer need to showcase their
ecommerce sector, here in the UK? products on a website. We could well see an explosion in
the number of influencers, big and small, going it alone and
AN ALTERNATIvE OUTLET fOR RETAILERS opening up their own online store without a website.
Despite the very limited availability of the new feature it We already see a huge number of entrepreneurs acting as
represents a big moment in the way that users will be able to sole traders in marketplaces like Amazon, with some turning
consume content and shop online. Users will no longer need over excess of £500,000 in sales, the only current limitation is the
to visit a retailer’s website and be forced through a clunky, availability of large marketplaces to sell in, mainly Amazon or Etsy.
time-consuming process on a platform built for an outdated This Instagram update will democratise the world of ecommerce
way of making a purchase as they do at present. The entire to the point at which anyone can become an ecommerce retailer.
process of shopping, from start to finish will be housed on With the huge number of highly engaged users on the platform,
one page allowing users to add the item to their cart and even micro-influences will see the benefits of the new update.
continue scrolling. They will no longer have to drag users from the app to online
This update will transform Instagram from a social media shop fronts which can be a barrier to sales meaning influencers
site to an enormous shopping mall with millions of store lose money. The update makes it a very exciting moment to be
windows in front of billions of shoppers with trillions of on the platform from the perspective of an ecommerce retailer.
pounds to spend. This creates a huge opportunity for
ecommerce retailers as shopper’s intent to purchase has GREATER ImpORTANcE ON
little time to be diluted. This increased sales opportunity and INfLUENcER mARkETING
the modest percentage of each purchase that Instagram will Influencer marketing is already big business and it is set to
take means this could be very lucrative for retailers. stay that way with nearly two thirds of marketers planning
Looking ahead at where this could go, Instagram will be on increasing their influencer marketing budgets this year
a major rival to Amazon as a major online marketplace. and this update will see demand for these services increase
dramatically. From top celebrities and influencers to smaller,
micro influencers, brands will be looking to align themselves
with people who have strong followings to take advantage
of the increased commercial potential of these partnerships.
One of the biggest bug bears around selling through
Instagram previously was that users were taken to a third-
party site to complete their purchase. The introduction of
Instagram Checkout will drastically reduce the rate at which
people add to cart and ultimately make a purchase. In 2017
online retailers in the UK saw add to basket conversions
at a rate of per cent. However, consumers shopping on
smartphones convert at just 8 per cent and 9.5 per cent.
Considering that 67 per cent of us access social media
through mobile apps, this slicker version of Instagram will
make it even more appealing for ecommerce retailers
looking to boost online sales conversions.
Although Instagram is playing its cards close to its chest
around when we will see Instagram Checkout arrive in the
UK, it is an exciting development for the ecommerce industry.
A new ecommerce outlet is always good for retailers and
one with an existing and engaged audience will only help
ecommerce retailers to grow on their own terms.

30 RETAIL & LEISURE INTERNATIONAL JULY / AUGUST 2019