Instagram eCommerce: How to Sell and Grow Your Business 

Key takeaways: 

• Instagram has become an excellent platform for eCommerce. 

• Since Instagram has plenty of ad formats, picking the right gimmick for each format is important. 

• Plenty of other small businesses have successfully leveraged Instagram eCommerce, and with the right strategy so, can you. 

Back in 2010, people didn’t think that Instagram and eCommerce would be said in the same sentence, but the app is no longer just for sharing aesthetic photos. It’s transformed into an active online shopping platform that allows product showcasing and customer connection. 

Instagram’s love for visuals and handy eCommerce features makes it a go-to platform for selling online. And with TikTok’s recent ban, business owners and entrepreneurs might need alternative channels to promote and sell their offerings. 

Let’s talk about how Instagram can help with your eCommerce experience. 

We’ll guide you with helpful tips and tricks to get started. 

What is Instagram eCommerce? 

Many often ask: Can you sell on Instagram? The quick answer is “yes”. 

Instagram eCommerce is the process of selling products directly through Instagram. Businesses don’t need a website to reach customers; all you need is an account from the said platform. 

The app first rolled out its eCommerce features in 2016, gradually expanding over the next few years. Now, other key features include:  

• Instagram shopping. This provides a digital storefront on your profile, displaying products for direct purchase.  

• Product tagging. It enables the tagging of products in posts, Reels, and Stories, so customers can shop right away after watching your content.  

• In-app checkout. It allows customers to complete purchases within the app. A simplified buying process rakes in more customers ready to purchase immediately. 

• Live shopping. It lets you showcase and sell products in real time via Instagram Live. It also engages customers through Q&A and product demonstrations.  

5 benefits of Instagram eCommerce 

 Since its release in 2023, TikTok Shop’s conversion rate soared. Statista’s survey found that approximately 43.8% of American TikTok users had bought something from the platform. 

However, suppose you’re selling on TikTok without other alternatives and you’re worried about its future developments. 

In this case, Instagram might be a good alternative to check out because of these advantages: 

1. Increased brand visibility and engagement 

Instagram’s focus on visuals makes it easier to showcase your products. After all, if you’re a buyer, seeing a product is better than just reading it. 

To catch your audience’s attention, it’s key to make engaging content, such as: 

• High-quality images 

• Videos 

• Stories 

• Reels 

• Interactive posts 

• Polls 

Let’s say a small handmade jewelry brand posts a stunning photo of a new bracelet collection and asks followers in the caption, “Which one is your favorite? Comment below!” It’s a simple engagement strategy, but it’s enough to boost visibility. 

More comments increase the post’s chances of being shown to new users in the Explore tab. The brand can interact with comments to connect with potential and existing buyers. 

2. Seamless shopping experience 

If you’ve ever bought anything online, you know you don’t want to go through plenty of pages just to finally make a purchase. As a seller, you want to strike fast once your customers are in the perfect state to buy your product. 

The in-app checkout feature reduces friction by allowing customers to buy directly on the Instagram app without being redirected to an external website. 

For example, a skincare brand uploads a Reel showing how their face serum improves skin hydration. The video already includes product tags. An Instagram user who sees the post can just tap the tag and check out buttons within seconds. 

3. Access to a large and engaged audience 

Instagram is one of the largest social media platforms for businesses. With 1.44 billion active Instagram users expected in 2025, you’re selling right where most of your customers are on the internet. 

Imagine you’re a fitness apparel startup. Since you’re not very well known yet, you posted on Instagram and used the hashtag #ActivewearStyle. A user searching for trendy gym outfits discovers your page through the hashtag. The potential customer browses your Instagram Shop, likes a few posts, and follows your account. A few days later, they might purchase a workout set after seeing it in an Instagram Story promotion. 

4. Stronger brand-consumer relationships 

Since Instagram is a place for interaction, it lets brands interact with customers in real-time. You can directly read what your customers think about your brand through features like: 

• Polls 

• Question and answer (Q&A) stickers 

• Instagram Live 

• Direct messages 

A small coffee shop can host a new flavor launch by creating an Instagram poll in Stories, asking followers, “Would you try our new Caramel Mocha Latte? Yes or No?.” Followers engage by voting, and the shop can DM those who voted ‘Yes’ with a discount code, encouraging them to visit and try the new drink. 

This tactic lets you promote your drink while reaching out to your customers. In the future, there’s a higher chance they’ll engage with your posts and think of your brand. 

5. Potential for influencer marketing and user-generated content 

People trust recommendations from other users more than direct brand advertisements, so partnering with influencers and resharing customer content adds authenticity and expands reach. Let’s face it, most customers know brands want their product to sound appealing in ads, so they tend to be more skeptical about what you’re selling. If they can see a real person using the product with their own positive opinions, they’re more likely to believe their experience. 

If you’re a sustainable swimwear brand, you can partner with a travel influencer who wears their bikini in a tropical destination. You can ask them to tag your brand in their Instagram post. Their followers, who trust her style and recommendations, might click on the tag and explore your Instagram Shop. 

Real small businesses using Instagram eCommerce 

Several small businesses have effectively utilized Instagram’s eCommerce features to achieve significant growth:  

1. Urban EDC 

Urban EDC, founded by Yong-Soo Chung, sells high-quality everyday carry (EDC) gear like pocket tools, knives, and notebooks. Instead of focusing on mass marketing, they built a niche community on Instagram by sharing high-quality product photos and engaging with their audience. 

Why it worked: They didn’t just sell products—they built a brand identity that resonated with their audience. Their Instagram releases content for their niche audience, so they stay engaged and excited about new releases. 

2. Spotted By Humphrey 

Spotted by Humphrey is a boutique pet shop inspired by its founders’ French Bulldog after its name, Humphrey. They used Humphrey’s Instagram account, with over 120,000 followers, to promote stylish pet accessories. Fun, relatable content like cute dog photos, behind-the-scenes clips, and engaging captions turned followers into paying customers. 

Why it worked: People follow pet accounts for entertainment, and they leveraged that into eCommerce. Instead of hard selling, they created organic content focused on Humphrey’s lifestyle so naturally that it promoted their products while keeping followers engaged with their adorable dog. 

3. Bro Glo 

Bro Glo, a self-tanner for men, was born from an inside joke between the founders. Instead of traditional beauty marketing, they used humor and relatability to break into a male-dominated market. Their Instagram strategy focused on funny, engaging content that showed real-life product use while normalizing self-tanning for men. 

Why it worked: They tackled a pain point—men wanting a tan without looking fake—while using authentic, personality-driven content that resonated with their audience. Instead of pushing sales, they built a brand voice that felt like a friend giving advice. 

4. Beer Cartel 

Beer Cartel started as an online craft beer store in Australia in 2009. Most brands stopped posting product photos for promotions, but Beer Cartel took it a step further and educated their followers about different beer styles, tasting notes, and food pairings. Once they mixed expert content, community engagement, and promotions, they managed to establish themselves as a credible source about anything beer related. 

Why it worked: Their educational approach helped attract a loyal customer base who are interested to learn more about beer. Rather than just push sales, they also gave back to the beer-loving community with their fun info and resources. 

How to use Instagram for your eCommerce business 

To make the most of Instagram’s eCommerce potential, follow these steps: 

1. Set up an Instagram business account 

You need to switch from your personal account to an Instagram Business or Creator account before you can start selling. It will give you access to features so it’s easier for customers to purchase from your store. Just follow these steps: 

1. Go to Profile Settings. 
   • Open the Instagram app and go to your profile. 
   • Tap the three horizontal lines (☰) in the top-right corner. 
   • Select Settings and Privacy from the menu. 

2. Select “Account type and tools”. 

3. Tap “Switch to professional account and select “Business“ as your account type. 

4. Set up your profile. 

• Follow the on-screen prompts to: 
  • Choose a business category that best describes your brand. 
  • Add contact details. 
  • Link a Facebook Page (if applicable) 

2. Create an Instagram shop 

Instagram Shops allow you to showcase your products in a dedicated storefront on your profile. To set up a shop, you’ll need to: 

1. Connect your Instagram account to a product catalog. 
   • Use Meta Business Suite or an eCommerce platform like Domain.com’s eCommerce website builder to create a product catalog. 
   • Ensure your catalog includes product names, descriptions, pricing, and high-quality images. 

2. Submit your account for review. 
   • Go to Instagram Settings and navigate to Business > Set Up Instagram Shopping. 
   • Follow the prompts to submit your account for review. 

3. Wait for approval. Instagram reviews applications within a few days. Processing time may vary. You’ll receive a notification once your shop is approved. 

3. Optimize your profile for sales 

Your Instagram profile serves as your storefront. It should be clear, professional, and designed to convert visitors into customers. 

Start with a high-quality profile picture, preferably your brand logo, for easy recognition. Your bio should be short but informative, explaining what you sell and including a call to action such as “Shop Now” or “Browse Our Collection.” 

Recently, Instagram allowed more than one link in your bio, but you can still but you can consider using a service like Linktree or a landing page that funnels users to your shop, website, or latest promotions. 

4. Post high-quality content 

Instagram puts focus on images, so your content needs to be engaging and professional. Quality product images and videos can make a big difference to potential customers’ perception of your brand. 

You can use a mix of content types since they all have different purposes. Variety also makes sure you keep your audience engaged. 

For instance, Instagram’s carousel posts let you showcase multiple product images, while Reels and Stories are great for behind-the-scenes footage, product tutorials, and even customer testimonials. 

5. Leverage Instagram shopping features 

As we previously mentioned, one of Instagram’s advantages is its seamless shopping process since business owners can advertise their products through their content, and users can buy them right away without leaving the app. 

Once your Instagram shop is approved and you already created your content, you can enable your shopping features and start tagging products in your posts and stories. 

Pro tip: Collections help keep things organized by grouping similar products, so shoppers easily find what they need according to product categories. 

6. Engage with your audience 

People expect businesses to be responsive on Instagram, so replying to comments and direct messages promptly can help establish trust. 

Interactive features like polls, Q&A stickers, and countdowns in Stories can encourage participation and keep followers interested in your brand. Hosting giveaways or contests can also drive engagement and attract new customers. 

Building a community around your brand makes people more likely to support your business and recommend it to others. But engagement doesn’t end at brand awareness, because it can directly impact sales by keeping your brand top-of-mind for potential buyers. 

7. Run Instagram ads 

Instagram ads allow you to reach wider audiences due to their advanced targeting options. It ensures your ads are seen by people who have better chances of being interested in your products. 

If you want to target people who have interacted with your business before, retargeting ads can be effective. These ads show products to users who previously visited your website or engaged with your content but haven’t made a purchase yet. You can also monitor your ad performance using Instagram Insights to determine what works best for your audience. 

Types of Instagram Ads for eCommerce 

Instagram offers a variety of ad formats specifically designed to help eCommerce businesses. It can get confusing if you’re new, so here’s a closer look at the best Instagram ad types for eCommerce: 

Photo ads feature a single high-quality image with a caption, call-to-action (CTA), and a link to your website or Instagram Shop. These ads blend seamlessly into users’ feeds and work well to highlight best-selling products, special deals, or new arrivals. 

1. Photo ads 

Best for: Showcasing single products, promotions, or brand storytelling. 

Pro tip: Use bold, eye-catching visuals and short, compelling copy to grab attention quickly. Make sure your product stands out in the feed. 

2. Carousel ads 

Carousel ads let you upload multiple images or videos in a swipeable format. Customers can swipe through the slides and tap on a CTA, leading them directly to a product page or your Instagram Shop. In fact, according to Statista’s survey, carousel ads generated 10.15% engagement in 2024. 

Best for: 

• Showcasing multiple products 

• Displaying different product variations 

• Showing a before-and-after transformation 

• Step-by-step guides 

• Telling a brand story 

Pro tip: Keep the first image engaging so users are encouraged to swipe through the rest of the carousel. 

3. Story ads 

Instagram Stories are one of the most highly engaged parts of the platform, with over 500 million people watching Stories daily. Ads appear between organic user Stories, taking up the full screen for a seamless viewing experience. They are short-lived but highly impactful. 

Best for: 

• Limited-time offers or flash sales. 

• Product teasers with a “Swipe Up” or “Shop Now” link. 

Pro tip: Since Story ads disappear quickly, add bold text, stickers, and countdown timers to create urgency. 

4. Reels ads 

Instagram Reels have skyrocketed in popularity thanks to the TikTok-style short-form video trend. Reels ads are only 15–30 seconds long, so you have to showcase products in fun, quick and creative ways to immediately engage your audience. 

Best for: 

• Capturing attention with short, engaging video content. 

• Product demonstrations in action. 

• Before-and-after transformations. 

• Unboxing videos or customer testimonials. 

Pro tip: Use trending sounds, effects, concepts, and skits to boost engagement. 

5. Shopping ads 

Shopping ads display product details and pricing, and a direct “Shop Now” CTA leads to your Instagram shop or website. They can appear in: 

• The Explore tab 

• The Instagram Shop tab 

• Instagram Stories 

• The feed 

Best for: Driving direct sales with a seamless shopping experience. 

Pro tip: Your product catalog should have accurate pricing, product descriptions, and high-quality images. 

Collection Ads combine video, images, and product listings to create a mini storefront within Instagram. When users tap the ad, they’re taken to an Instant Experience where they can browse more products and make a purchase without leaving Instagram. 

6. Collection ads 

Best for: Showcasing a product catalog in an interactive, shoppable format. 

Pro tip: Use an attention-grabbing cover image or video so it encourages users to explore your collection. 

7. Explore ads 

Explore Ads appear in Instagram’s Explore tab, where users go to discover new content, trends, and brands. These ads help eCommerce businesses reach high-intent shoppers who are actively looking for inspiration. 

Best for: Reaching new audiences actively trying to find new products. 

Pro tip: Blend your ads naturally into the Explore feed with trendy, lifestyle images. 

Instagram eCommerce Best Practices 

To maximize your success on Instagram, follow these best practices: 

Use high-quality visuals 

Instagram is all about visuals, so your product photos and videos need to stand out. Your content shouldn’t stop at being high-quality, well-lit, and attention-grabbing. Showing your product in action tends to be more attractive than simple, static images. 

Don’t forget to follow Instagram’s recommended image sizes to keep everything looking sharp and professional. 

Maintain a consistent brand identity 

Your Instagram feed should reflect a cohesive brand identity. The easier you are to recognize, the better your customers remember you. If you’re consistent with your color scheme, fonts, and tone of voice, soon customers will associate those components to your branding right away. 

Leverage Instagram Reels & Stories 

Short-form video content is currently a very engaging content format on Instagram, and it would be a waste not to use it to its full potential. Create engaging reels and stories to capture more attention. 

Partner with influencers and brand ambassadors 

Collaborating with influencers in your industry or niche can expose your products to a wider audience. Micro-influencers, or Instagram users with 10K–50K followers, often have higher engagement rates than celebrities and can drive sales through authentic recommendations. 

Encourage user-generated content (UGC) 

Customers trust other customers. Ask buyers to tag your brand in their posts or Stories, then share their content on your page. A simple report can go a long way in strengthening loyalty since your customers might even feel appreciated. 

You can also create a branded hashtag to make it easier for people to share their experiences. Perks like discounts or a feature on your profile might even encourage more posts. 

Utilize Instagram Insights to track performance 

One of the benefits of marketing online is its easy analytics tracking, and Instagram provides a detailed report on engagement, reach, and sales. Regularly analyze your data to see what content performs best and adjust your strategy accordingly. You’ll want to make decisions that are backed with proper information. 

Be responsive and engage with your community 

Replying to comments, DMs, and Story interactions fosters a connection with your audience. A responsive brand builds customer loyalty and encourages repeat purchases. Engaging online also tells your customers that your brand is active, up-to-date, and the real deal. 

Grow your small business with Instagram eCommerce 

Instagram has long moved past being just another social media platform. Now, it’s a powerful eCommerce tool that you can use to generate revenue with the proper steps and strategies. 

If you’re serious about selling online, now is the time to leverage Instagram’s eCommerce features. Whether you’re a new entrepreneur or an established business looking to scale, you surely can start selling on Instagram anytime! 

However, building your sales channel on Instagram alone is like building your house on leased land. You’re always at the limits and mercy of Meta’s terms and conditions, since they own the platform. 

Nothing beats the full control and customization you get from selling through your own eCommerce website. Consider building your online store with Domain.com’s eCommerce plan.  

No time to DIY? We can also build it for you. 

FAQ for Instagram eCommerce