Is #Insta #Sell creating a niche space in the #e-commerce market?

by rejof / Tuesday, 27 August 2019 / Published in Business Insights

We all know of Instagram as a photo and video sharing platform, which has grown to 1 billion users presently since its launch in 2010…So how, is e commerce becoming a part of this platform…

Let’s consider these facts

80% of Instagram users follow a business account
35% of the most viewed stories on Instagram are by business houses
200 mn users visit a business profile at least once a day
Over 90mn users globally use shopping tags every month

So in addition to its photo and video sharing features Instagram has been quietly building up maybe on its ambition to be part of the e commerce space. Let’s track how it has been trying to enter this space

In November 2016 Instagram introduces #Shoppable #tags which allowed users to tap on a tag in a picture to buy products from the brands website
In March 2017 it launched in app booking and reservation facility for service brands
In May 2018 adds payment feature for some users
In September 2018 introduces Shoppable Tags in Instagram stories
In March 2019 launches Check out feature for top brands like Adidas, Zara, Nike and Dior in the US

Why is the platform trying to enter this space?

The ad business is still the primary focus — but Instagram will increasingly push users to shop on the app. Instagram’s focus will be on scaling the e-commerce business. Instagram is pushing e-commerce because the market opportunity is in fact greater, In 2018, US retail e-commerce sales totaled $513.6 billion, up 14.2% year-over-year (YoY), per US Census estimates. US ad sales are about half that, totaling $207 billion in 2018, up 6.9% YoY, per Magna estimates.
In addition, e-commerce can boost the ad business, and vice versa, in a virtuous cycle. As more users make in-app purchases, brands and businesses of all sizes are likely to respond by purchasing more ads on the app. The hope will be to direct users to the Instagram profiles of brands, which will increasingly act like virtual storefronts where users can buy products. Instagram now has 25 million active businesses, and half of them do not list a website, meaning they are native to Instagram. Instagram is considering allowing businesses to turn shopping posts into ads, which would further hybridize shopping behavior and ad engagement in a virtuous cycle, and further reduce friction in the path to purchase.

So what is it that it is trying to do differently?

Product discovery

With Product discovery, Instagram is trying to “broaden the spectrum” of what a user is looking for. More than four in five Instagram users say the app helps them to make purchasing decisions, with 83% saying it helps them discover new products or services. Instagram is trying to convert meaningful sales through casual engagement — scrolling, not searching — in which users happen upon something they want to buy without having had a prior intention to shop and this is particularly helping smaller vendors

Let us consider a few examples of such small vendors

1.@sanskritikvastrashala a user specialising in handwoven apparel and accessories has close to 20,000 followers

2.@rawbeauty2018 which specializes in organic beauty products has close to 9000 followers

[email protected] which specialises in handmade smile has also close to 9000 followers

These vendors with their specialised products would never have been noticed in a huge ecommerce platform like amazon …

So what is this niche space that Instasell is likely to develop?

1. Product discovery platform. I have friends who sends me links of some of very fine crafted stuff, which you would never have been able to notice on any other platform.

2. It also offers a better micro targeting with hashtags and is a huge platform for niche sellers and offbeat categories.

Most of the existing e commerce players are themselves not making money in the e commerce space .Though the potential for Instasell is huge and is a smart niche to grow whether this will lead to business results remains to be seen.

When we think about some of Instagram’s biggest feature releases over the past 12 months, none might be as significant as the launch of shoppable media, a product that will undoubtedly transform how e-commerce brands utilize the platform going forward…

WRITTEN BYRejo Francis

Strategy & Leadership| Sales & Marketing|Start Up |Customer LifeCycle Mgmt|P & L Management | People Management| Operational Excellence| Speaker|Blogger

Social Media

Is #Insta #Sell creating a niche space in the #e-commerce market?

We all know of Instagram as a photo and video sharing platform, which has grown to 1 billion users presently since its launch in 2010…So how, is e commerce becoming a part of this platform…

Let’s consider these facts

80% of Instagram users follow a business account
35% of the most viewed stories on Instagram are by business houses
200 mn users visit a business profile at least once a day
Over 90mn users globally use shopping tags every month

So in addition to its photo and video sharing features Instagram has been quietly building up maybe on its ambition to be part of the e commerce space. …Read more · 3 min read

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The #Subscription #Economy …The only #Business Model for the #Future?

Having been used to working in product companies I was in for a surprise when I first joined a service provider company in 2006 whose entire business model was based on customer acquisition and their retention based on monthly subscriptions for the service provided.

The world economy as we know it has always been a product driven economy. …