I-Commerce: the Beginning of the end for E-Commerce

Instagram is the unlikely rival for e-commerce in the long haul as it rolls out Instagram Shop for all businesses. As more e-Commerce platforms like Shopify make it easier for people to open business, marketing gets a lot harder. However, the opportunities are still there, as evident with increases in online orders by 49%. As a business, you should use Instagram Shop instead of traditional e-commerce platform. 

Instagram combines the best of both worlds

Instagram’s biggest advantage: it’s a social platform first and commerce second. Instagram has 1 billion active monthly users who are likely to see your products, as 90% users follow at least one business account. On top of that, you can build followings on Instagram, contrast this with e-commerce platforms buyer and seller relationships. Having an audience enables you to give repeated products exposures consistently.

Window shopping has gone virtual
Credit: Unsplash

A frictionless experience

Instagram is in the perfect position to take advantage of virtual window shopping trend where impulse buying are common. People already spend 53 minutes every day on the app, so Instagram Shop’s checkout where customers don’t need to leave Instagram to make purchase will create a frictionless experience that will increase sales. This is another advantage compared to e-commerce platforms, which have smaller conversion rates as they require customers to switch website and enter checkout information.

Although Instagram is still in early stages for their commerce feature, they make it up with a “Shop” tab to showcase your products. Customers will also see a familiar payment platform with PayPal , Visa, and Mastercards, ensuring a secure payment. As Instagram further develop it’s commerce features, e-commerce will be a thing of the past. As a digital marketer, capitalize early on this opportunity and establish your brand in Instagram Shop now!

Do you think all businesses will benefit from Instagram Shop? How do you think e-commerce will fight against I-commerce rise?

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17 thoughts on “I-Commerce: the Beginning of the end for E-Commerce

  1. I love how you put in facts and statistical input to this! I guess that Instagram is paving its way as a commerce channel, however it shall be noted that this feature has not been utilised to its potential as it is only available to branded accounts and still very little to small businesses. Great job!

    1. Thanks Cindy! Yesterday they just opened it to all eligible US businesses and creators, so we’re getting it faster! Have you tried using the feature?

      1. That’s amazing! It’d totally be in my go-to list to assure possible increase to consumer awareness. IG Shop’s ease-of-use feature will particularly eliminate the hassle of going through a manual operational system, thanks for the information. That is very useful, Sher!:)

        1. Exactly, shopping will be so frictionless and it will help your business too. Be aware that they have 5% processing fees if you want to use instagram shop

  2. Curious to see how the consumers will react to Instagram’s commerce channel as I still think e-commerce platforms hold greater scalability which is reflected in the prices. Perhaps influencers and niche products will dominate the Instagram market. Nice read 🙂

    1. That’s a good point Tommy. I think Instagram influencers will benefit most too as it’s more seamless for followers to buy their endorsed products. Instagram doesn’t charge the fees to customers, instead they charge it to the businesses so I think the challenge will be getting the businesses on board

  3. great post! I think that more and more business nowadays uses I-commerce to sell their products. It is very beneficial especially for new companies where they are just starting their business. But I don’t think that they are a match for e-commerce

  4. Such a great post Sher! I actually only use Instagram for fashion inspiration and to find new clothing businesses. With shoppable content on social media it’s just so easy to purchase products, and I can absolutely imagine how brands are taking advantage of impulse buying here! It’s dangerous! I’ve had to be so mindful of my habits to stop myself from making impulse purchases on Instagram…!

  5. Thanks Ella! Your impulse buying is carefully engineered by Instagram Shop hahaha. I think it’s especially hard to control when we’re spending so much time online

  6. Nice article, the writer’s datas n statics very updated.

    This is a good insight for me to even considered to switch my Marketing to I-commerce.

    Thanks Sher, you are amazing.

  7. Nice article, the writer’s datas n statics very updated.

    This is a good insight for me to even considered to switch my Marketing to I-commerce.

    Thanks Sher, you are amazing.

    Can you predict how long that I-commerce Will replace E-commerce position?

    1. Thanks Susanto! It’s great that you’re adapting so quickly and move into I-commerce straightaway. I would give it at least 2 years, but it all depends on Instagram’s commerce features improvement. A more advanced features will attract big players, their existing system isn’t advanced enough for companies with thousands of catalogs and I don’t see it coming until at least 2 years later

  8. Great post! It’s crazy how these platforms which began just as vehicles for content and entertainment have enable businesses to reach consumers via more channels then ever! I haven’t user instagram shop yet, and honestly I dont think I ever will. I think I would definitely rather buy products from the actual sellers website (if they have one) just so that instagram wont take any of the funds from my order!!

    1. Thanks Eliza. I agree, instagram is super creative (although sometimes they copy others e.g. Insta reels). Do you mean extra fees on your order? Technically they’re taking cuts from the business, not consumer so you don’t need to worry about price increases!

  9. This is really interesting, the way social media will transition into commerce platforms will change the entire e-commerce world. Between this and your basketball articles, you’ve got an awesome site. keep it up!

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