How to start and grow an Instagram shop

Instagram isn’t just an image-based social sharing platform anymore; it can now act as your storefront, shortening your customer conversion journey. With an Instagram shop, customers don’t have to work hard to buy your products; the checkout process is smooth, and you can easily reach new customers.

If you’re a new or budding business owner, this guide is here to help you understand a little more about having an Instagram shop, how it works, how to land your first sale, and how to grow your business.

Why bother with an Instagram shop?

Your customers are already there. Around 90% of Instagram accounts follow at least one business, and most people use the app to discover new things to buy, with 81% of users saying they turn to Instagram to research new products. So if your future customers are already active here, that’s a pretty good reason to give it a go.

The overheads are low. As a new business, you might not have access to working capital, so getting a fancy website designed or paying for a brick-and-mortar store is out of the question. On Instagram shop, you can start selling immediately with relatively little expense. The shop is a low-risk way to test if there’s a market for your product.

You can reach people across the world. With a physical storefront, you’re limited to those visiting the local area. Online, you have access to a much wider audience, which is particularly useful if your products are niche. There are a lot of chances to get your product in front of people who will buy it.

What can you sell on an Instagram shop?

You can sell all kinds of physical goods on an Instagram shop. Think dropshipping, clothing, jewellery, skincare, art prints, crafts, homeware, the list goes on.

If you’re not sure what you’re going to sell on your Instagram shop yet, it’s worth researching the categories that perform the strongest. For example, 12% of users search for fashion brands on Instagram, which makes it the largest category. Other categories that perform well include beauty, homeware, and food and drink.

If your product is visually appealing, you can build a connection more quickly with customers; high-quality photos and videos are essential for Instagram shop success.

How to set up a shop on Instagram (a step-by-step guide)

1. Switch to a professional account. Go to settings and choose either a Business or Creator account.
2. Connect a Facebook page. Instagram will pull product information through the Meta ecosystem, so you need to link a Facebook Page.
3. Create your product catalogue. You can sync your products automatically if you’re using a connected platform like Shopify; if not, you can use Meta Commerce Manager to do this.
4. Submit your account for review. Meta needs to check that you meet its rules. This should only take a few days. To get approved, you’ll need to sell physical goods and follow Meta’s commerce policies.
5. After approval, go to your settings and switch on shopping. Now you can start tagging your products in your posts, Reels, and Stories.

Do you need an e-commerce site to sell on Instagram?

Not necessarily. You can use direct message links instead of sending customers to a website. This link forces a direct message to be sent to your account. Then you can reply with a secure payment link from a payment platform like Stripe. This is a great option if you’re starting off with a few orders. If your order volume grows, you can either set up a website or use automated chat tools that send users a checkout link if they comment a certain word, e.g. “comment ‘buy’ and I’ll DM you the payment link”, allowing them to pay immediately.

If you want to set up a website but have a smaller budget, you can create a basic Shopify storefront for just £19 per month. This is a cost-effective way to showcase your products in a professional space without draining your cash reserves. You can also sync your Shopify products automatically with your Instagram shop.

Things to consider before your shop goes live

Here are seven things to consider before you go live with your Instagram shop:

1. Branding. Pick a consistent set of colours, fonts, and a tone of voice. You don’t need a designer; free tools like Canva let you create professional brand assets yourself. You can build a basic brand kit with Canva for free.
2. Photography. Use natural light and clean backgrounds to help your products stand out in your catalogue.
3. Pricing. Don’t forget to set pricing that covers your costs, including postage and packaging.
4. Delivery and returns. Decide how you’re sending your items, how much it costs, and the returns process.
5. Stock and fulfilment. Understand how much stock you have and how you’ll get orders out the door.
6. Descriptions. Write clear product descriptions, include sizing if relevant.
7. Finances. If you need capital to bulk purchase stock or materials upfront, you can consider small business loan options so you’re in the best place to hit the ground running.

Selling on Instagram: how to get your first sale

The thought of getting your first sale can be daunting and exciting. So, how can you convert that very first customer?

• Post consistently and tag your products in anything relevant. The more chances people have to buy it, the better.
• Create shareable short-form videos. Reels drive more discovery than any other content format on Instagram at the moment.
• Give your shoppers all the information they need in the caption. Price, sizing, materials, and how to order. Make it as easy as possible for the shopper to make a decision on the purchase.
• Reduce as much friction as you can from the buying process. Don’t give them a reason to hesitate. 71% of UK social media buyers have made a spontaneous purchase.
• Reply quickly to every message and comment. The quicker you respond, the greater the chance of converting that customer before they move on.
• Share reviews and customer content; trust is valuable.

How the Instagram algorithm affects shop visibility

The more shares, saves, and comments, the more Instagram pushes it out to similar people.

Reels in particular play an important part in Instagram visibility. If users watch your reels multiple times or all the way through, it signals to Instagram that your content is valuable. The more you create shareable content, the better. When a user shares your post with a friend, it signals again that your content is worth showing to more people.

Stay consistent with your content posting instead of posting sporadically. Consider committing to a few times a week, and be realistic in your social capacity. If you’re a sole trader doing this alone, don’t try to spread yourself too thin. Decide what you can deliver and stick to it.

How to promote your shop on Instagram

There are a few growth strategies you can implement to help increase your shop’s reach.

Engage genuinely

Before and after posting your content, engage with the community. Comment and interact with accounts in your niche. Don’t just sell, sell, sell. Show your human side and integrate with the community.

Tap into relevant communities

If you sell baby products, for example, you’ll want to tap into the parent spaces and show up consistently, leaving thoughtful comments, without pushing your product. Use niche hashtags, or local tags if you’re local, and find trends that genuinely fit your product.

Work with micro-influencers

Don’t waste budget backing a celebrity so early on. Find small niche influencers who would benefit from your product. 30% of UK shoppers have bought a product based on a creator’s recommendation, so the right partnership can pay off.

Run ads when you’ve already built a small audience

Most boosted posts perform well through paid ads if they’re already performing well on their own. Boosting just enhances that post. You can run separate campaigns called ‘dark posts’; these don’t appear on your grid and run independently in Meta Business Suite. You can typically target your audience more specifically and test multiple ads using the same budget.

Keep branding consistent

Building a recognisable feed builds trust with your audience. Stick to the same colours, fonts, tone of voice, etc. Remember, you can create these brand assets for free using tools like Canva.

Consider cross-posting

Using multiple platforms helps you reach different audiences and presents a joined-up presence for your brand online. If you’re just starting out, it could be worth focusing on just one or two social channels first, as your resources might be limited initially.

How to have a successful Instagram shop: 3 best practices

1. Check your analytics regularly

See what performed well, what didn’t, who’s engaging, etc. Make decisions for future content based on your results. E.g. you notice your reels are out-performing other content types, consider investing more time and strategy into them.

2. Reinvest your money thoughtfully

It’s tempting to quickly boost a post here and there but before you know it, you’ve spent half your marketing budget with nothing to show for it. Instead, put profits back into stock or properly strategise your marketing tactics.

3. Stay adaptable

As the update from last September shows, Instagram features can change quickly. Stay on top of trends and updates so you can adapt quickly to continue growing.

How Capalona can support your shop

Sometimes, all it takes is for one of your reels to go viral and you’re suddenly facing a mountain of orders. This is a dream situation, but now you need more stock, better packaging, proper photography, and an ads budget.

If you don’t want to deplete your cash reserves, we can help you instantly find and compare eligible small business loans. Then you can stock up on inventory, cover quiet seasons, or invest in marketing to grow your business quickly.

Remember, you don’t have to grow immediately. Start small and reach out for funding when your business would benefit from it most.

If you’re just starting out, give our ultimate guide to starting a business a read.