What happened
Shares of BigCommerce Holdings, Inc. (NASDAQ: BIGC), an e-commerce platform company, spiked 37% today after the company announced that its e-commerce checkout service would be available through Facebook's Instagram app.
As of 3:18 p.m. EDT, BigCommerce's stock was up 25.3%.
So what
Investors pushed BigCommerce's stock up after the company announced that its platform will allow eligible merchants on Instagram to sell their products directly through the social media app. The ability for consumers to check out on Instagram, instead of leaving the app and going to a merchant's website to finalize an e-commerce sale, could help merchants more easily sell their products through the app.
Image source: Getty Images.
In a press release, BigCommerce CEO Brent Bellm said:
"Creating a streamlined checkout experience is paramount for merchants looking to social commerce to drive revenue growth. The rollout of checkout on Instagram is another significant step in Instagram's evolution toward becoming an essential commerce channel for customer-focused brands."
After an Instagram user places an order, they'll be able to use the app to view their order, cancel purchases, and find out delivery information.
Now what
BigCommerce doesn't appear to be an exclusive partner for the Instagram checkout service, but the company said in a press release that it's "one of a select group of partners to offer their customers access to this innovative new feature at launch." Investors will have to take a closer look at the company's future quarterly financial reports to see if this new integration boosts BigCommerce's top and bottom lines.
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