What Happened: The e-commerce software-as-a-service company said its checkout service would now be available through Facebook subsidiary Instagram's social media platform for eligible merchants in the United States.
Instagram users would be able to shop for products, checkout, and make payments using BigCommerce's service, according to a company statement.
BigCommerce CEO Brent Bellm claimed that a streamlined shopping and checkout experience from social media platforms could positively impact sales.
The integration of the BigCommerce portal with Facebook Commerce Manager would allow merchants to sync their online product catalogs directly with Instagram. Instead of visiting a brand’s e-commerce website, users can browse through products and purchase them through their Instagram profiles.
Some other features include viewing the order status, shipment tracking & delivery details, order cancellation & returns, as well as customer support.
Why It Matters: BigCommerce partnership with Facebook comes at a time when the Mark Zuckerberg-led company is increasingly expanding e-commerce features across its platforms. Facebook on Tuesday announced it was also adding the "Shops" feature to its main social media platform, which already existed on Instagram.
Benzinga's Take: Based on past trends, merging social media and e-commerce under the same roof has complemented business growth.
With an estimated 130 million Instagrammers, there is a lot of untapped market potential for small and big brands alike. The collaboration would also allow new entrants to launch and sell products on Instagram directly to consumers.
Price Movement: BigCommerce stock gained an impressive 36.87% on Tuesday to close at $104.09 per share. The shares traded another 4.86% in the extended trading hours.
The stock is up 333.7% from the IPO price of $24 per share as of Tuesday's close.