If you’re looking to transform your Instagram account into a sales powerhouse, you’re in the right place. Instagramers upload up to 500 million posts DAILY.  It has evolved over the years from a simple photo and video-sharing tool to a powerful marketing tool and has a significant impact on its users’ buying behavior and how businesses can target their audience. 

90% of users follow a brand on Instagram, 83% have discovered a product/service from Instagram. And 80% have made a purchase based on a product or service they discovered on the platform. 

So, if you are a small business owner and want to keep up with the competition but have a limited budget or want to grow your brand’s awareness and want to be able to prove ROI, you should use Instagram Shopping. 

Key Takeaways

1. Harness the power of impulse buying  – Instagram shopping is all about how to make your target audience see your product and want to buy it immediately. Instagram ads with a link to your online shop is a great way to make buying your product 1 click away. 
2. Limited Budget? – No problem! An Instagram shop doesn’t cost a penny. The only time you’ll need to pay is if you choose to run Instagram ad campaigns. 
3. Utilize user-generated content and influencers – 51% of Americans trust UGC more than any other form of media. Use this to drive traffic to your Instagram shop.  

The Ultimate Guide to Instagram Shopping

Instagram shopping isn’t just a trend—it’s a fundamental shift in how brands connect with consumers. Did you know that 70% of users turn to Instagram to discover new products? So, if you’re not leveraging this platform, you’re seriously missing out!

This guide will walk you through everything you need to know about setting up your Instagram shop, optimizing your posts, and leveraging the platform’s features to boost engagement and sales. 

1. Setting Up an Instagram Shop

First things first: let’s get your shop set up!

Step-by-Step Setup

• Create a Business Account: If you haven’t already done so, switch your personal account to a business account. Go to Settings > Account > Switch to Professional Account and select Business. This gives you access to insights and shopping features, which are essential for tracking performance and ROI. 
• Link Your Product Catalog: You’ll need a product catalog to showcase your items. You can create one through Facebook Business Manager or connect with platforms like Shopify or BigCommerce. For instance, brands like Alo Yoga seamlessly integrate their Shopify catalogs to feature their latest collections directly on Instagram. This integration makes it easier to manage inventory and showcase products without hassle.
• Enable Shopping Features: Once your catalog is set up, head to Settings > Business > Set Up Instagram Shopping. Follow the prompts to submit your account for review. This usually takes a few days. Pro tip: Make sure your account meets Instagram’s guidelines to avoid delays! Instagram typically looks for a complete profile, high-quality content, and a consistent posting schedule.
• Customize Your Shop: Once approved, you can tweak how your shop appears. Highlight your best-sellers or seasonal collections. A good example is Revolve, which showcases curated collections that entice users to explore more. Make sure to use eye-catching visuals and clear descriptions to captivate potential buyers.

2. Product Tagging and Promotion

Now that your shop is set up, it’s time to showcase your products effectively.

Best Practices

• Use Product Tags: Tag your products in your posts and stories. This allows followers to click on the item to see details and make a purchase. This direct link makes it super easy for potential customers to shop. Research shows that posts with product tags can increase engagement by 25%! Victoria’s Secret has NAILED the product tagging game – they use shoppable reels, videos, and posts to make shopping easier for their customers by tagging the items. Often, they will get their models to tag the items, too, creating even more reach and user-generated content. If you want a pro tip on how to utilize reviews, read 5 Ways To Leverage Customer Reviews to Increase Sales. 
• Create Engaging Stories: Use Instagram Stories to promote new arrivals or sales. Incorporate polls, questions, and countdowns to engage your audience and drive traffic to your shop. Did you know that one-third of the most-viewed Stories are from businesses? So, don’t underestimate the power of this feature! Use story highlights to save your best promotions and product showcases for newcomers.
  
• Leverage Influencers: Collaborate with influencers in your niche. They can showcase your products to their followers, expanding your reach and credibility. For instance, Glossier has successfully used influencer partnerships to build a loyal customer base, which generate 11 times more ROI than their traditional marketing avenues. Their approach? Authenticity over perfection, which resonates well with their audience. You can read more on how to create a strong brand identity here. 

3. Algorithm Optimization

Understanding Instagram’s algorithm is key to getting your posts seen by your target audience, or on any social media platform for that matter. If you want to sell on multiple social channels, read this guide on How To Sell Directly Through Social Media. 

Tips for Optimization

• Post Consistently: Maintain a regular posting schedule to keep your audience engaged. Studies show that brands that post at least once a day see higher engagement rates. Use scheduling tools like Later or Buffer to plan your content in advance. Consistency not only keeps your brand top-of-mind but also helps build a loyal community.
• Use Relevant Hashtags: Research and use hashtags relevant to your target market. Mix popular hashtags with niche ones for better visibility. For example, if you sell handmade jewelry, use hashtags like #HandmadeJewelry along with trending ones like #JewelryAddict. Hashtags can boost your post’s discoverability, leading to a 12.6% increase in engagement.
• Engage with Your Audience: Respond to comments and messages! The more you interact, the more likely your content will show up in their feeds. Remember, Instagram rewards engagement – so don’t leave your fans hanging! Host Q&A sessions or give behind-the-scenes looks to foster community. Theo Chocolate encourages buyers to share pictures, which helps broaden its community and links them back to their online shop. 
• Analyze Timing: Use Instagram Insights to determine when your audience is most active. Posting at peak times can significantly increase your visibility. Experiment with different times to see what works best for your audience. 

4. Analytics and Adjustments

Tracking your performance is crucial for success and proving all the important ROIs. 

How to Use Analytics:

• Access Insights: Go to your profile, tap the Insights button, and review key metrics such as reach, engagement, and sales.
• Evaluate Content Performance: Identify which posts drive the most traffic and sales. Adjust your strategy to focus on what works – whether that’s certain types of posts, timing, or content style.
• Test and Learn: Don’t be afraid to try new things and make mistakes. Test different types of content and promotions, and be ready to pivot based on what the analytics tell you.

5. Emerging Trends

Staying ahead of the curve is essential in the ever-evolving world of social media.

Latest Features and Trends:

• Instagram Reels: Short, engaging videos are gaining traction. Use Reels to showcase products, share behind-the-scenes clips, or provide styling tips.
• Live Shopping Events: Consider hosting live shopping events. This allows real-time interaction with potential buyers and creates a sense of urgency for your products. Sephora tapped into its target market by live-streaming shopping events to demonstrate a variety of cosmetics in real-time tutorials, allowing customers to buy straight from links next to the stream. According to McKinsey & Company, live-streamed events are seeing conversion rates of almost 30%, well above traditional e-commerce strategies.
• Augmented Reality (AR): Explore AR features to let customers virtually try on or use your products. This can enhance the shopping experience and increase conversions. For example, just before COVID, Adidas launched AR Sneakers. This innovative addition empowered shoppers to make informed purchase decisions without the necessity of physically visiting a store. 
• Sustainability and Ethics: Today’s consumers value sustainability. Highlight eco-friendly practices or materials in your products to resonate with conscious shoppers. Green businesses have flourished with Instagram marketing! Nau, the Portland-based clothing company, has become a pioneer in the fashion industry by blending style, performance, and sustainability in its products. #NauMadeToLast emphasized how long-lasting Nau’s clothing is. With more than 5,000 participants, the campaign was a huge success.

And there you have it – your ultimate guide to Instagram shopping! If you own an eCommerce brand, you’re thinking about starting one or you’re a marketing manager, you should take advantage of it! By following these steps, you can transform your Instagram account into a vibrant storefront that not only engages your audience but also drives sales. Now, get out there and start turning those likes into sales! 

If you would like some personalized business coaching to help sky-rocket your Instagram and your business, then look no further. You can get access to Foundr+ for just $1. This gives you access to 14 days of live coaching, real-life human support, a community of over 30,000+ like-minded professionals, and over 30 business courses to fast-track your learning and business growth. 

FAQs:

How successful is Instagram shopping?

Instagram users spend an average of 30.6 minutes daily on the platform – with 500 million people using Instagram Stories daily and 130 million Instagram users tap on shopping posts monthly. Is Instagram Shopping Driving Sales? The Results Are In: Brands Report +1,416% Traffic, +20% Revenue.

How do I make my Instagram shop successful?

With your Instagram shop set up, harness these Instagram marketing tips to start bringing in sales:

• Partner with influencers
• Run Instagram ads
• Use product tags
• Publish Reels
• Curate user-generated content
• Use the right hashtags
• Use video to showcase your product
• Leverage Instagram Stories for sales

What are the disadvantages of Instagram shopping?

Pricing! Although it is free to set up – there are a few sneaky fees you should be aware of: 

• Subscription Fees –  Signing up for Instagram Shop is free, but you’ll need to pay processing fees for your sales.
• Transaction Fees – Transaction fees are an important aspect of using Instagram Shop. The selling fee is 5% per shipment or a flat fee of $0.40 for shipments under $8.00
• Additional Fees.