Look out Etsy, Pinterest is making a move on the handmade makers market. This week Pinterest announced it's going to be rolling out in-app purchases. Instead of having to leave the app, customers are now able to check out directly on Instagram ONLY if you are a verified merchant.
Business account users will be able to create collections, pin their products and have quick and easy checkouts. Their shop will be an extremely valuable asset when competing with other brands. Potential customers now go from browsers, to instant buyers. And since Pinterest verifies its vendors, this provides a layer of trust to new customers who haven't heard of your business prior to this interaction.
To become a verified merchant, it only takes about 1 week at this time. With this news emerging, it is likely the wait time will grow as more companies quickly try to get verified as well to capitalize on these new features.
This news has come at the same time that Etsy has spoken about raising their seller transaction fee from 5% to 6.5%, making a large percentage of Etsy sellers to strike in April of 2022. Etsy sellers are placing their stores on vacation mode, meaning no customers can make purchases until Etsy addresses this issue.
Having these two massive events happen at the same time means there may be a shift to Pinterest. Pinterest's user base is one of the most high spending demographics making them desirable customers to acquire for small businesses.
Etsy has been trying to make handmade goods companies compete with amazon's quick and cheap services which has been angering Etsy users for years. This could lead to a dramatic shift in companies building their own websites and using Pinterest instead to gain new customers.
Time will tell if they are successful at acquiring a chunk of Etsy's makers.
It is not clear yet what Pinterest's fees will be but from others predictions, it is likely for them to be basically free besides credit card transaction fees just to entice their business account users.