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How to Set up an Instagram Shop: A Guide for eCommerce Sellers

Written by Marc Guberti

Marc Guberti is a Certified Personal Finance Counselor who has been a finance freelance writer
for five years. He has covered personal finance, investing, banking, credit cards, business
financing, and other topics.
Marc’s work has appeared in US News & World Report, USA Today, Investor Place, and other
publications. He graduated from Fordham University with a finance degree and resides in
Scarsdale, New York.
When he’s not writing, Marc enjoys spending time with the family and watching movies with
them (mostly from the 1930s and 40s). Marc is an avid runner who aims to run over 100
marathons in his lifetime.

Updated April 14, 2024​

5 min. read​

Opening an Instagram Shop can increase your sales and put your products in front of more people. Instagram is a visual social network that makes it easier to promote products and services. Posting on Instagram regularly to promote your shop can also increase brand recognition and encourage existing customers to buy from you again.

This guide will reveal what it takes to open an Instagram Shop and walk you through the steps. You will also learn how to grow your Instagram Shop and get in front of more customers.

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How Can eCommerce Sellers Benefit from an Instagram Shop?

eCommerce sellers can reach more potential customers with an Instagram Shop. Instagram has more than two billion monthly active users, and some of those users may want to buy from you. An Instagram Shop also lets you reconnect with customers who first found you on another platform.

Requirements to Set Up an Instagram Shop

These are some of the requirements you’ll have to fulfill to start an Instagram Shop:

  • Comply with Instagram’s policies
  • Confirm that you own the eCommerce store’s domain through a Domain Verification process
  • Be located in a supported country (i.e., the United States)
  • Maintain a sufficient follower base and have an authentic, established presence
  • Product listings must contain accurate information

How to Set Up an Instagram Shop: Step-by-Step Guide

Setting up an Instagram Shop can increase your brand’s visibility and boost your revenue. These steps will help you get started.

1. Sign Up on Facebook/Instagram and Create a Business or Creator Account

You will have to sign up for a Facebook or Instagram account if you haven’t done so already. You must have a Business or Creator account to open an Instagram Shop.

2. Connect Your eCommerce Store to a Facebook Page

Instagram wants to verify that you own the eCommerce store. Connecting it to a Facebook Page and going through the domain verification process will get you closer to making money with an Instagram Shop.

3. Upload Your Catalog of Products

You will have to upload your products to Instagram Shop and ensure the descriptions accurately represent your offerings. Instagram Shop owners can use Commerce Manager to enhance the customer experience. Online store owners can categorize their products into themes so customers can more easily find what they want.

You can also integrate your Instagram Shop with an eCommerce database to access more features and see more data. Shopify lets its users integrate with the Instagram app so all of their products automatically move over to the app. This integration can save you a lot of time when you set up your Instagram Shop.

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4. Account Review

Instagram will review your account to ensure your shop meets its standards. You must have at least nine products in your Instagram Shop to get approved.

5. Activation of Shopping

If you get approved, you can activate your Instagram Shop. Launching your eCommerce store on Instagram can lead to more revenue and opportunities.

How to Use the Instagram Shop

These are some of the ways you can use Instagram Shop to grow your business.

Creating Product Posts

Product posts bring more attention to individual products and your shop as a whole. These posts are discoverable on Instagram’s algorithm, which can attract new followers. Some people who come across your product for the first time may proceed to browse through your Instagram Shop.

Categorizing Products

Categorizing products helps customers find more of what they want. Customers may put more products in their shopping carts, which will lead to higher revenue. A well-organized Instagram Shop assists customers with the buying journey and makes it easy to window shop. Some customers may browse through your product categories several times before purchasing a good or service.

Promoting Products

You can promote products by posting about them on your Instagram account or through paid advertising campaigns. Advertising returns don’t always show up in the beginning, but businesses that stick with their advertising campaigns can potentially run profitable ad campaigns within a few months. You can promote your Instagram Shop and its products through advertising on your own, but you can save time and money by working with a professional.

Drive Sales Using Instagram Stories

Instagram has pushed its stories feature by listing accounts’ stories at the top of the Instagram feed. Using this feature can keep you on the top of your customers’ minds. You can use this feature to increase engagement and product products in your shop.

Your brand will become more recognizable among your followers if you post daily stories. People will get into the habit of looking for your stories. Displaying products, showing your audience your personal side, and offering educational stories can make people excited to see that your shop came out with new Instagram content.

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How to Optimize Your Instagram Shop

Every business owner wants to get more sales this year than in the previous one. These strategies can help you optimize your Instagram Shop and generate more revenue.

Utilize Insights

Instagram Insights gives you a deeper glimpse into when your followers are active on Instagram. You can schedule posts to go out when more of your followers are online. It’s also possible to compare individual posts and see which ones are garnering the most engagement.

Consistent Branding and Style

Using the same branding and style will make your Instagram Shop more recognizable. Instagram Shop owners should use the same color schemes for their product listings. You should also use the same font if you include text in your images.

Be Inclusive and Share User-Generated Content

Don’t only share your own content. Spreading the love and sharing Instagram posts and videos from other creators can draw more attention to your Instagram Shop. Due to the law of reciprocity, some people may feel inclined to share your content if you have already promoted it on your Instagram account.

Partner with Influencers

You can partner with influencers through cross-collaborations and sponsored posts. Cross collaborations involve an exchange promotion. You share someone else’s content, and they share yours. Repeat this process with several influencers, and you can accumulate a large following.

It takes less time to offer money for sponsored posts. You can have an influencer promote your product listing, shop, or post to their followers. Micro-influencers are the best group for these campaigns. These influencers have under 10,000 followers and usually charge lower prices since fewer people approach them for sponsorships. Instagram influencers with more than 100,000 followers will charge more, but that doesn’t guarantee you will get a return on your investment.

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How to Finance the Instagram Shop Expansion of your eCommerce Business

An Instagram Shop can be a great resource for your eCommerce business. You’ll get more exposure, but more visibility also has its challenges. If you sell out of inventory and can’t fulfill customer orders, people may lose trust in your brand.

Financing can mitigate the risk of these types of scenarios so you can scale your business. You can reach out to financial institutions and credit unions about traditional business financing. However, the traditional route often has stiff requirements and fixed monthly payments. Not every eCommerce owner has the flexibility to make fixed payments since their monthly sales fluctuate.

Revenue-based financing is a viable alternative that gives you the capital you need for your Instagram Shop. You will receive a lump sum and then make monthly payments equal to a percentage of your store’s gross monthly revenue. This payment structure makes the monthly repayments more manageable during slower months. Revenue-based financing providers typically have generous credit score requirements, but they require that your company generates a minimum amount of gross annual revenue.

Stenn is a leading provider of strategic funding solutions for eCommerce businesses seeking to access capital for specific needs and growth objectives. Through Stenn’s innovative revenue-based financing option, eCommerce businesses looking to invest in advertising online, inventory, expanding marketing efforts, or enhancing technology infrastructure can benefit from its flexibility and freedom without the burden of strict repayment terms of traditional loans. Submit an online inquiry to see if your eCommerce business qualifies for revenue-based financing with Stenn or to learn more with no obligation.

Conclusion: Is an Instagram Shop Right for You?

An Instagram Shop can put you in front of your ideal prospects. These people may discover your store on Instagram and become regular buyers. An Instagram Shop can also re-engage your existing customers and increase the frequency of their purchases. An Instagram Shop is a worthwhile opportunity for many eCommerce business owners.

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