How to Drive Social Commerce Sales with Instagram Shops

/ Thoughtspace - Social

If you use social media, you’ve probably noticed the online retail purchasing process has shifted onto the apps. More recently, social commerce has gained popularity on Instagram with Instagram Shops, a page where users can explore brands and products.

This experience integrates all of a brand’s photos and videos of their products into one showing. This makes it easier for customers to research and compare products. While scrolling, customers can purchase items directly from the posts they interact with. This creates a seamless experience for the user and simplifies the purchasing process. The consumer no longer need to be redirected to different webpages. 

Social commerce will be a $79.64 billion industry in the US by 2025. It’s important that D2C brands don’t miss out and one of the best places for you to start is Instagram. 

The Power Of Instagram Shops

According to Instagram, 81% of respondents the app as a way to research products and services. 130 million users tap on shopping posts every month. This underscores the importance of Instagram as a way to promote brand awareness as well as drive sales. The rollout of Instagram Shops makes it even easier for brands to offer their customers a seamless purchasing experience without leaving the app. 

Instagram shopping functions as an extension of the ecommerce experience on brands’ websites. The tools offered by Instagram allow for customization that can individualize the purchase process for customers. The collection tool allows for the curation of products into themes such as new arrivals, gifts, seasonal trends, and more. Users can also shop your products throughout Instagram through Product Tags, which allow users to tap to learn more. Product Tags are also available to use in ads which can increase reach and drive more conversions. 

Driving Social Product Discovery

Instagram has also rolled out Shop tab ads to make it easier for users to discover brands. These ads appear as a tile within the Shop home page. Clicking on an ad takes users to the product details page where they can then view the product on the website. In addition to serving ads within the Instagram Shop feed, using shopping ads in conversion based ads can increase conversions and drive increased ROAS. The user experience of setting up a shopping ad is seamless, with the ads manager pulling shopping posts directly in from what has already been shared. These ads will include shopping links that take people directly to the product details page and allow them to checkout within the app.

A Forbes study showed that two thirds of shoppers use social media as part of their shopping strategy and 77% of Millennials and Gen-Z use social media to shop. This trend towards social media emphasizes the importance of integrating social commerce.

Instagram Shop as a vital piece of a company’s ecommerce strategy. The platform allows for a streamlined path to purchase for potential customers that integrates seamlessly into their social media routine. Ad placement in the shopping feed also allows brands to reach customers who are already in a shopping mindset, which can improve conversion rates for CPG brands. 

Key Takeaways

  • The rapid growth of social commerce cannot be ignored, especially for D2C brands. Instagram is a key player in the space, offering some of the most advanced features.
  • Instagram Shop places products in front of relevant audiences when they are in a receptive shopping mindset. 
  • Instagram allows for a seamless, in-app shopping experience that improves the customer journey and drives streamlined conversions. 

If your brand is interested in setting up an Instagram shop, visit the linked page and review the steps from Instagram found at the bottom of the page. For assistance running ads for your company’s product, contact Coegi to learn more. 

For information about social commerce on other platforms, read Social Commerce 101: What Marketers Need to Know.


/ Contact

Tell us about your project
Are you interested in gaining the latest marketing insights through Coegi’s newsletter, The Loop?
This field is for validation purposes and should be left unchanged.

contact form image