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Selling on Instagram: a channel with massive sales potential

Last updated: July 31, 2025
Selling on Instagram

Social media has been the fastest-growing driver of eCommerce referrals in recent years. Instagram’s growing eCommerce influence has been a massive contributor to this transformation.

Making followers leave the app to purchase items has always been a huge barrier to conversion on Instagram. But with enhanced in-app purchases and sophisticated shopping features now available, selling on Instagram has become much easier and is now an essential part of eCommerce marketing in 2025.

Why should selling on Instagram be a priority?

Currently, over 2 billion Instagram accounts are active worldwide monthly, with 61.9% of users being active daily according to Instagram’s latest data. More importantly for businesses, 89% of online furniture & appliance stores and 81% of food and personal care online stores use Instagram Shopping to connect with consumers.

Delving deeper into user behavior, 81% of Instagram users say they use the app to discover new products and make purchase decisions. Another survey found that 61% of users have discovered a new regular-use product or brand on Instagram. The platform’s visual nature makes it perfect for product discovery, with 44% of people shopping on Instagram weekly using features like shopping tags and the Shop tab.

For businesses wondering if they can sell on Instagram, the answer is a resounding ‘yes’. Instagram generated an estimated $37.2 billion in social commerce sales in 2024, making it the second-most popular platform for social commerce after Facebook. With 29% of users making purchases directly on Instagram, according to the 2025 Sprout Social Index, the platform has evolved from a discovery tool to a complete sales channel.

Instagram Shop: The Central Hub for Selling

Does Instagram have a marketplace? Absolutely. Instagram Shop serves as the platform’s dedicated marketplace, functioning as both a discovery tool and a point of sale. This feature allows businesses to create comprehensive storefronts where customers can browse, save, and purchase products without ever leaving the app.

Instagram Shop includes several key components:

  • Shop Tab: Users can explore products from businesses they follow and discover new brands
  • Shopping Ads: Sponsored product listings that appear within the Shop tab
  • Shop from Creators: Products tagged by influencers and content creators
  • Personalized Recommendations: AI-powered product suggestions based on user behavior

The Shop experience has been optimized for both discovery and conversion, with Instagram selling becoming more seamless than ever before.

Shoppable Instagram Posts: The Foundation of Social Commerce

For a long time, Instagram was about building loyalty, awareness and using word-of-mouth style marketing to boost a brand. It only allowed external links in bios and, later, in its stories feature.

Nowadays, Instagram has features that allow users to purchase items directly from the app, which is great news for sellers looking to sell on Instagram! Modern selling on Instagram takes place mainly through multiple interconnected features designed to reduce friction in the buying process.

Shoppable Instagram posts remain a cornerstone feature that allows businesses to add product names and prices to their Instagram photos and videos. These posts look just like organic content, with the only difference being a small shopping bag icon or a ‘Tap to view products’ option.

Shoppable Instagram Posts
Instagram shoppable posts have proven incredibly effective, with some brands reporting traffic increases of up to 1,416% and revenue boosts of 100% from implementing product tagging. When users tap on these shopping tags, product details appear within the post, showcasing price, description, and a direct link to purchase.

Enhanced Shopping Features for 2025

Instagram has significantly expanded its selling on Instagram tools beyond basic product tagging:

Instagram Stories Shopping

Instagram Stories now offers sophisticated product stickers that can be placed anywhere within a story. When uploading content to Stories, businesses can choose product stickers from the sticker tray and link them directly to their catalog. You can add multiple product stickers to each story, making it easy to showcase entire collections.

Reels Shopping Integration

With 62.2% of marketers now using Instagram Reels for influencer marketing, shopping integration in Reels has become crucial. Brands can tag products directly in Reels, allowing the 89% of Gen Z consumers who discover products on Instagram to make purchases without interrupting their viewing experience.

Shop Through Direct Messages

One of the newest features allows customers to purchase products directly through Instagram DMs. This creates a conversational commerce experience where customers can ask questions, receive personalized recommendations, and complete purchases all within the messaging interface.

Collection Ads and Dynamic Product Ads

For paid advertising, Instagram now offers collection ads that show multiple products in a single ad unit, and dynamic product ads that automatically show relevant products to users based on their browsing behavior on your website.

Requirements for selling on Instagram

The requirements for setting up selling on Instagram have evolved and expanded. Here’s what you need:

  • You must be in one of the supported countries (now over 50 countries, including the US, UK, Canada, Australia, and most of Europe)
  • Instagram Business or Creator Account (required for all commercial activities)
  • The latest version of the Instagram app
  • Primarily sell physical goods (digital products and services have limited support)
  • Facebook Business Page with admin access
  • Product catalog that complies with Facebook’s Commerce Policies
  • Meet Instagram’s Merchant Agreement terms
Requirements for selling on Instagram
Important Update for 2025: Instagram has streamlined the approval process, but businesses must now meet additional requirements around customer service response times and return policies to maintain their selling privileges.

How to Set Up Selling on Instagram in 2025

The process has been simplified compared to earlier years, though it still requires coordination between Facebook and Instagram:

1. Set Up Your Business Accounts

First, ensure you have a Facebook Business Page and an Instagram Business Account. If you haven’t connected these accounts, go to ‘Edit Profile’ in Instagram and link them under business information. Make sure you’re an admin on the Facebook page.

2. Create Your Product Catalog

Using Facebook’s Commerce Manager, create a product catalog or connect to an existing one. You can manually add products or integrate with eCommerce platforms like Shopify, BigCommerce, or WooCommerce for automatic synchronization.

2025 Enhancement: Meta has introduced AI-powered catalog optimization that can automatically improve product descriptions and suggest better categorization for improved discoverability.

3. Submit for Review

Navigate to Instagram Settings > Business > Shopping and submit your account for review. The approval process typically takes 2-7 business days, during which Instagram reviews your business, website, and product catalog for compliance.

4. Configure Your Shop

Once approved, you can customize your Instagram Shop appearance, organize products into collections, and set up featured products that appear prominently in your Shop tab.

Instagram is a rapidly growing marketplace. If you can build followers and then turn them into customers, you’ll see a huge boost to your sales.

5. Start tagging

Begin adding product tags to your posts, Stories, and Reels. You can tag up to 5 products per single image, 20 products in carousel posts, and unlimited products across your content.

Advanced Selling on Instagram Tools and Software

Modern selling on Instagram software has evolved to include sophisticated analytics and automation tools:

Native Instagram Tools

Instagram Shopping Ads Manager: Advanced advertising tools specifically for product promotion

Instagram Insights: Provides detailed analytics on Shopping engagement, including product discovery metrics and purchase journey analysis

Creator Studio: Allows bulk product tagging and content scheduling with shopping features

Third-Party Selling on Instagram Tools

  • Later: Social media scheduling with shopping integration and visual content calendar
  • Hootsuite: Comprehensive social media management with Instagram Shopping analytics
  • Sprout Social: Advanced listening and engagement tools with commerce tracking
  • Gorgias: Customer service platform that integrates Instagram DM shopping
  • Klaviyo: Email marketing automation that syncs with Instagram shopping behavior

eCommerce Platform Integrations

Most major eCommerce platforms now offer seamless Instagram integration:

  • Shopify: Direct Instagram Shop integration with automatic product sync
  • BigCommerce: Native Instagram Shopping with advanced catalog management
  • WooCommerce: Plugin-based integration for WordPress stores
  • Magento: Enterprise-level Instagram commerce solutions

Maximizing Your Instagram Sales Potential

Optimize for Instagram’s Algorithm

With over 200 million users tapping on shopping posts daily, standing out requires strategic content creation:

  • Post consistently (top brands average 1.84 posts per day)
  • Use Instagram Reels for maximum reach
  • Leverage user-generated content and customer photos
  • Implement trending audio and hashtags strategically

Create Engaging Shopping Content

Instagram users spend 45% more time engaging with content compared to other platforms, making quality crucial:

  • Show products in use, not just static product shots
  • Create behind-the-scenes content that builds brand connection
  • Use high-quality visuals that showcase product details
  • Include clear calls-to-action that guide users toward purchase

Leverage Influencer Partnerships

With influencer marketing spend expected to reach $3.17 billion in 2025, partnerships remain crucial for Instagram selling success. Focus on:

  • Micro-influencers with highly engaged audiences
  • Long-term brand ambassador relationships
  • Authentic product integration rather than obvious advertisements
  • Performance tracking through unique discount codes and links

Measuring Success and Optimization

Instagram provides comprehensive analytics for businesses engaged in selling on the platform:

Key Metrics to Track

  • Shopping Engagement: Taps on product tags, saves, and website clicks
  • Discovery Metrics: How users find your products (hashtags, explore, etc.)
  • Conversion Tracking: From Instagram discovery to website purchase
  • Customer Journey Analysis: Multi-touch attribution across Instagram features

A/B Testing Opportunities

  • Product tag placement and quantity
  • Content types (photos vs. videos vs. Reels)
  • Caption length and call-to-action phrasing
  • Shopping ad creative, and targeting

Looking Ahead: The Future of Selling on Instagram

As we move further into 2025, several trends are shaping the future of instagram selling:

  • Augmented Reality Shopping: Try-before-you-buy experiences directly in the app
  • AI-Powered Personalization: Smarter product recommendations based on user behavior
  • Live Shopping Events: Real-time product demonstrations with instant purchase options
  • Subscription Commerce: Recurring purchase options for consumable products

Final Thoughts

Now you know the comprehensive landscape of selling on Instagram in 2025, you should work to constantly improve your presence on the platform. Use Instagram Insights to gather data and optimize your strategy based on performance metrics.

The evolution from simple product discovery to full-scale social commerce has made Instagram an essential sales channel for businesses of all sizes. With $37.2 billion in social commerce sales and growing, the platform offers unprecedented opportunities for brands willing to invest in quality content and customer engagement.

Make sure you stay on top of other elements of your business too – think social media customer support, inventory management, and logistics, because running a multichannel eCommerce business requires coordination across all touchpoints.For comprehensive customer service solutions that support your Instagram selling efforts, eDesk integrates with all major social commerce platforms to help you manage customer inquiries across Instagram DMs, comments, and other channels from a single dashboard. Book a Demo with one of our experts today, to see how you could make the most of selling on Instagram.

Additionally, explore how AI-powered automation can enhance your social commerce operations and customer support capabilities.

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