The Essential Guide to Instagram Shopping in 2025

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Updated on: August 27th, 2024Ken Braun7 min read
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The Essential Guide to Setting up an Instagram Shopping Account

Imagine having free access to a huge shopping mall displaying only the products that you’re interested in — all in the palm of your hand!

Whatever a person’s interests, they are continually self-curating their Instagram feed to create a customized environment of all the things they love. This “sweet spot” is where you are able to engage with committed potential buyers on Instagram who are curious about the products you sell.

For retail and direct-to-consumer businesses, Instagram offers a unique platform to reach customers who are already excited and engaged with specific categories of merchandise. Especially effective for small businesses, you can easily create a brand offering that communicates your product, i.e., elegant and chic for luxury pieces or more adventurous and outdoorsy for athletic wear or camping equipment.

So Just How Big is this Dynamic Marketplace?

With over 1 billion monthly users worldwide (and over 140 million in the US alone), Instagram continues to grow exponentially. Instagram engagement saw remarkable growth, particularly in recent years, as people increasingly rely on the platform for both social interaction and shopping.

Instagram shopping stats loungelizard 1 300×172 1

Instagram recently reported that over 100 million users interact with shoppable posts every month, and the platform remains a major player in the e-commerce space, with the overall marketplace estimated to be worth over $300 billion per year.

What Types of Products are Successful on Instagram?

Instagram is home to all things visual! Users are drawn to stunning images that captivate the imagination. Color, beauty, and a classic design aesthetic can all collaborate to tell a story and inspire users to visualize how their world might look.

Screenshot of a home décor Instagram shopping account with a “view products” tab and product tags.

Screenshot of an apparel Instagram shopping account with a “view on website” button

With Instagram, you can take a simple product and showcase it in the perfect way. Whether you’re selling luxury kitchen wares or stylish apparel, using high-quality visuals and engaging product tags can make a significant impact. Here’s what works particularly well:

  • Home Décor: Furniture, accessories, seasonal decorations.
  • Beauty and Skincare: Custom blend serums, organic products.
  • Fashion: Clothing, shoes, and accessories, including sustainable fashion.
  • Eco Living: Reusable products, bamboo toothbrushes.

Exciting New Features and Best Practices

Shoppable Posts and Stories: Instagram has enhanced its shopping features to include shoppable posts and stories, allowing users to purchase directly from the content they engage with. By tagging products in your posts or stories, users can click to view product details and make purchases without leaving the app. This streamlined experience helps increase conversion rates and reduces friction in the shopping process.

Instagram Shop: The immersive Shop feature continues to be a powerful tool. With an Instagram business profile, you can set up a shoppable storefront where users can browse products and collections. Customize the shop with themes that reflect your brand’s story and allow customers to check out seamlessly within the app. This feature enhances the shopping experience and aligns with Instagram’s goal of creating a more integrated shopping environment.

Checkout on Instagram: The Checkout feature lets customers complete their purchases directly on Instagram using various payment methods, including Facebook Pay, Visa, Mastercard, and PayPal. This feature simplifies the purchasing process, reducing the need for users to leave the app, and can lead to higher conversion rates. Instagram has also waived fees for small businesses to support them during challenging times, making this a valuable tool for driving sales.

Setting Up an Instagram Shop

To set up your shop, follow these steps:

  1. Ensure Eligibility: Confirm that you’re selling eligible products and are located in a supported market.
  2. Agree to Policies: Review and agree to Instagram’s merchant agreement and commerce policies.
  3. Have a Website: Ensure you have an active website domain or use an integrated platform partner like Shopify or BigCommerce.
  4. Convert to Business Account: Change your Instagram account to a business or creator account.
  5. Link to Facebook: Connecting your Instagram account to a Facebook page provides additional features and marketing options.
  6. Upload Product Catalog: Upload your catalog through the catalog manager or use an integrated ecommerce platform partner.
  7. Submit for Review: Your account will be reviewed by Instagram to verify your domain and ensure compliance.
  8. Activate Shopping Features: Turn on shopping features and start tagging products in your posts and stories.

Using Instagram Ads

Instagram Ads are an effective way to reach audiences beyond your current followers. Ads can be targeted to specific audiences and are particularly effective for small businesses. Here are some key tips:

  • Target Audience: Use Instagram’s targeting options to reach specific demographics or interests.
  • Budget: Set a budget that fits your marketing goals and allows the ad delivery system to optimize performance.
  • Conversion Tracking: Track the performance of your ads to understand their effectiveness and adjust strategies as needed.

Screenshot of an apparel Instagram shopping account with a “Add to Cart” button

Instagram Marketing Opportunities

  • Optimize Your Profile: Ensure your profile is complete with a clear description, clickable URL, and a compelling call to action.
  • Create Engaging Content: Post high-quality visuals and engaging captions to captivate your audience and encourage interaction.
  • Use Hashtags Wisely: Incorporate relevant hashtags to increase visibility but avoid overloading with too many.
  • Engage with Followers: Respond to comments and messages to build a community and show that you value customer feedback.
  • Leverage Influencers: Collaborate with influencers to expand your reach and build trust with potential customers.

A Final Word

As you execute your 2025 marketing strategy, consider integrating Instagram shopping to tap into a large, engaged audience. With features like shoppable posts, Instagram Shop, and Checkout, you can create a seamless shopping experience that drives sales and boosts your brand’s visibility.

While stay-at-home restrictions may have eased, e-commerce continues to thrive, with Instagram at the forefront of this digital shopping revolution.

For more insights on Instagram shopping and enhancing your digital presence, contact Lounge Lizard today!

Published on: February 2nd, 2021
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