Instagram is maturing as a ‘bread and butter’ platform for businesses wishing to leverage social commerce as a revenue stream with new analysis estimating that sales on the social media poised to generate $10 billion a year by 2021.
The social channel has developed from a photo-sharing network to a $10 billion business opportunity as the newly added checkout feature is making sellers eye the platform as a potential sales booster, says new research by Deutsche Bank.
The study highlights an increasing consumer shift towards shopping on alternative channels such as Instagram, with 43% of the survey participants saying they were either very likely (18%) or somewhat likely 25% to purchase goods on Instagram via its checkout tool.
The picture is even more positive amongst shoppers already using the social network to browse and buy with 83% are saying they’re either very likely (60%) or somewhat likely (23%) to shop on Instagram in the next six months.
The “ease of” Instagram checkout is the attribute behind consumers’ liking of the service, underscoring the wider shift towards seamless customer experiences.
This news highlight a 360-degree opportunity for merchants to pitch their products to consumers, namely, sellers can directly market to shoppers in their private space as the definition of personal and social interactions are blurring.
As the social commerce market continues to mature, sellers can expect an excitement of new tools and services ready at their disposal to woo consumers beyond traditional channels.