Instagram Forays into e-Commerce, Attracts MSMEs

Facebook-owned Instagram made a move into potentially lucrative e-commerce business by adding an option to buy products shown off in posts by selected brands. Instagram's entry into e-commerce space is considered a strategic move to attract the SME and MSME segment.

Previously, people inspired to buy products featured in Instagram posts had to follow links to outside online shopping sites.

A new “checkout” button for instant purchasing launched in a beta version of the app in the US with a limited number of businesses, according to the popular image-centric messaging service.

Tapping the checkout button will allow shoppers to select options such as size or colour and then pay for items without leaving the Instagram app.

Information entered for an initial purchase will be stored for future use, according to Instagram.

It has pitched its Messenger service as a communication platform for shops or brands to connect with customers.

Brands taking part in the checkout feature included Adidas, Burberry, Dior, H&M, Nike, Oscar de la Renta, Prada, and glasses retailer Warby Parker.