Instagram’s Powerhouse for Businesses: Shops and Reels

Instagram has an estimated 2.35 billion monthly active users globally, a dramatic increase that proves the platform’s continued growth and relevance. Users now spend an average of nearly 52 minutes a day on Instagram, providing businesses endless opportunities to build brand awareness and engage with potential customers. That’s a lot of social media sales.

In the past, businesses could only sell to users through a link in their bio or by using the Swipe-Up feature in Stories. These options required users to leave the app to complete a purchase, leading to a fragmented shopping experience that frustrated shoppers and retailers alike. Now, if you’re creating Instagram content, there’s a big lane for you to push your Instagram Store to your followers — or do we mean potential customers?

But Instagram has leveled up. Enter Instagram Shops, an in-app storefront where users can browse and purchase products without ever leaving the platform. This seamless shopping experience is a game-changer for brands, offering the potential for higher conversion rates and more engaged customers. Adding a shopping feature is huge — right there in the Instagram app, someone can snap up that hot sauce collab or share your Instagram post because they want their network to know they support you by spending their cash. 

Creators should care about Instagram Shops because they offer a seamless way to monetize their content and build deeper relationships with their audience. Here’s why:

1. Monetization without Disruption: Instagram Shops allow creators to directly sell products to their audience without interrupting the user experience. Rather than sending followers off the platform to external sites (which often results in losing potential sales), creators can tag products in their posts, Reels, and Stories. This means followers can browse and buy products immediately while still engaging with the creator’s content. The shopping experience becomes effortless, driving higher conversion rates.
    
2. Streamlined Merch Sales: For creators selling their own merchandise, Instagram Shops make it easy to create a professional storefront within the app. With features like product collections, creators can group their merch, showcase limited-edition items, and create a branded shopping experience that feels native to Instagram. This is especially useful for creators who want to monetize their audience more effectively without relying solely on affiliate links or outside e-commerce platforms.
    
3. Capitalizing on Real-Time Engagement: Instagram Shops integrate well with Instagram Live and Reels, making live shopping events and product drops highly interactive and engaging. Creators can host live shopping sessions where they show off products, and viewers can purchase them instantly via tagged products. This real-time interaction fosters trust and authenticity, which can lead to spontaneous purchases.
    
4. Boosting Brand Collaborations: Brands increasingly seek out creators who have integrated shopping capabilities because it offers them a more direct path to conversions. By partnering with brands, creators can highlight products through posts, Stories, or Lives and link directly to the brand’s products in Instagram Shops, making collaborations more lucrative and streamlined thanks to featured products in their Instagram Story. Creators with Shops have more opportunities to work with brands since their content can now lead directly to social media sales.
    
5. Building Trust and Community: Instagram Shops also foster a sense of community and authenticity. When creators offer products that align with their personal brand, followers feel like they’re buying into more than just a product — they’re supporting a creator they admire. This builds a deeper connection, making followers more loyal and more likely to engage with future content or purchases.

How Does an Instagram Shop Work 

The power of an Instagram Store provides a full-screen storefront that allows businesses to build their brand within the app. Customers can explore your products directly from your profile, Stories, Feed posts, or even from the Explore page. Whether they discover you organically or through targeted ads, shoppers can browse collections, view detailed product descriptions, and purchase — all within the app.

With customizable storefronts, businesses can create curated product collections, grouping items by themes or campaigns, and tell their brand story. Plus, new features like Augmented Reality (AR) Try-On tools allow users to “try on” products like glasses, makeup, or shoes directly through Instagram, offering an immersive shopping experience that boosts conversion.

And the best part? Setting up a shop is still free.

Why Instagram Shops Are Essential for Brands 

1. Streamlined Buyer Journey: Instagram Shops reduce the number of steps between discovery and purchase. Rather than navigating to an external site, users can browse, learn about, and buy products without leaving the platform. This reduces friction, making the buyer journey smoother and more immediate, resulting in fewer drop-offs.
2. Influencer-Driven Sales: Influencer marketing remains a key strategy in 2024, but now it goes beyond awareness. With Instagram Shopping, influencers can tag products directly in their content, making it easy for their followers to make purchases on the spot. This direct integration into influencer posts allows brands to better track ROI and leads to higher conversion rates.
3. Enhanced Product Discoverability: Instagram’s AI now powers a more refined product discovery experience, recommending products in users’ feeds and Stories based on their previous interactions. Whether it’s through Reels or the new Instagram Explore AI-Powered Shop tab, users can easily find products that match their tastes, leading to increased visibility for businesses.
4. Instagram Checkout: For U.S.-based businesses, Instagram Checkout allows users to complete purchases without ever leaving the app. With over 130 million people tapping on shopping posts each month, Checkout reduces friction by offering a seamless in-app purchase process. Businesses can connect Instagram Checkout to platforms like Shopify and WooCommerce for better data integration and easier management of orders.

Setting Up an Instagram Shop

Step 1: Confirm Eligibility

Before you get started, make sure your business meets Instagram’s criteria:

• Eligible product categories (physical goods only)
• You must have a website domain to sell from
• Your business must be located in a supported market
• Compliance with Instagram’s Merchant Agreement and Commerce Policies

Step 2: Switch to a Professional Account

Ensure your account is set up for business by switching to a Professional Account in your settings. This unlocks advanced features like Instagram Shopping, analytics, and paid promotions. You can also link your Instagram account to your Facebook Page, giving you access to even more marketing tools.

Step 3: Set Up a Product Catalog

Link your Instagram account to a product catalog through:

• Facebook Commerce Manager: Create your product catalog from scratch.
• E-commerce Platforms: If you’re using Shopify, BigCommerce, or other partners, integrate your product catalog easily.

Step 4: Submit Your Shop for Review

After adding your product catalog, submit your account for review. Instagram will verify your eligibility, a process that usually takes a few days.

Step 5: Turn on Instagram Shopping

Once approved, enable Shopping in your settings and start tagging products in posts, Stories, and Reels.

Tips for Selling on Instagram in 2024

1. Tag Products in Reels and Stories: Instagram’s algorithm now heavily favors Reels, and with the integration of product tagging in Reels, businesses can see a significant boost in discoverability. Using trending audio in combination with product tags can dramatically increase your reach and conversion potential.
2. Leverage Augmented Reality (AR): AR Try-On features allow users to visualize how products would look on them — whether it’s eyewear, makeup, or even home decor. This immersive experience increases purchase confidence and leads to higher sales.
3. Partner with Influencers for Takeovers and Lives: Collaborate with influencers for Instagram Live events or profile takeovers. With live shopping features, influencers can engage viewers in real-time while showcasing products that users can purchase directly through product pins, leading to spontaneous buying and higher engagement.
4. Use Interactive Features: Polls, quizzes, and shopping stickers in Stories offer a fun way to engage users and direct them to your shop. These tools foster two-way communication, driving engagement while gently guiding followers toward a purchase.
5. Create Compelling Product Collections: Organize your shop into themed collections for better user navigation. Group products by seasonal trends, new arrivals, or curated looks to give users a clearer, more organized shopping experience.

Why You Should Care About Instagram Shops

Instagram Shopping isn’t just another feature — it’s a game-changing tool that blends social engagement with e-commerce. For brands looking to grow their audience and increase sales, Shops offer a frictionless way to reach engaged users who are ready to buy.

With Instagram’s ever-evolving ecosystem of Reels, Stories, Live Shopping, and AR Try-On features, businesses of all sizes can now reach a global audience, convert casual viewers into loyal customers, and drive measurable growth — all without leaving the app. Pretty cool, huh?