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Instagram Shop: Is It A Waste of Money or Truly Profitable?

With the introduction of Instagram shops, the app has become a mini-eCommerce platform for many. But is this feature profitable or not worth the effort?

By Hermes FangPublished 2 years ago 3 min read
Instagram Shop: Is It A Waste of Money or Truly Profitable?
Photo by Alexander Shatov on Unsplash

Instagram has rapidly evolved from being an app for just documenting beautiful pictures and videos to becoming a powerful marketing tool. With over two billion people using the app at least once a month, this social media app’s advertising reach left that of Facebook’s in the dust earlier this year.

With the introduction of Instagram Shops in 2020, Instagram has now transformed into a mini-store for eCommerce store owners. This new feature allows eCommerce store owners to create a collection of their products with short bios, prices, and stocks left on their Instagram Shop page.

The addition of checkout tabs makes Instagram shopping easier. Now, you can make all payments on the app using your credit card or PayPal. Talk about simple! But are Instagram shops profitable or just a waste of money despite all these features? Let us find out!

Should I Use Instagram Shops?

Absolutely! We think it’s a great idea. With 90% of the users on Instagram following a brand, it definitely brings more visibility to your eCommerce store. Also, it represents another avenue for getting both traffic and revenue. Explained below are some other reasons why Instagram Shops can be profitable:

1. The Checkout Feature

One place where most eCommerce stores lose customers is the checkout page. 87% of online shoppers admit to abandoning online purchases due to complicated checkout processes. Once they notice a product on an Instagram page and take action, getting diverted to another website could be a deal-breaker for many. However, with the Checkout feature, customers don’t need to leave the app. Customers can just buy the product and go back to browsing. It's a win-win situation for everyone!

2. More Product Visibility

Visibility is the soul of any online business. The higher the number of people that see your products, the higher the chances of making a sale. Facebook statistics show that 70% of online shoppers use Instagram to discover new products. With the addition of Instagram Shops, they can easily buy from these brands, making sales easier.

3. You Can Sell With Content

Content on Instagram is meant to direct shoppers to your Instagram page and then to your eCommerce platform. You can now easily integrate content marketing with sales with Instagram Shops. This makes the selling process more accessible than ever before.

I believe these factors hugely influence your selling potential as an eCommerce store owner. Hence, you can easily make money using two avenues.

By Jakob Owens on Unsplash

What You Need to Know Before Using Instagram Shops

If you’re deciding to start using the Instagram Shops features, here are a few things you must know before starting:

1. You must have an Instagram Business Account

Only users with business accounts can add and sell products on their Instagram profiles. You can also convert a personal account to a business account. Apart from getting to sell with a business account, you also get access to a feature known as Instagram Insights. This helps track the performance of your posts on the platform.

2. You Must Connect Your Facebook Business Page

This means you must get a Facebook business page if you don’t have one. You should then connect it to your Instagram account. After connecting it to your Instagram account, your Instagram Shops should be activated within a few days.

3. Your Account Must Pass the Criteria for Instagram Shops

There are some requirements you must meet before you can open an Instagram Shop account. First, you must have an online store. Also, your products must be eligible for display on Instagram. Finally, your e-commerce store must follow Instagram’s Merchant Agreement and Commerce policies.

By Souvik Banerjee on Unsplash


Nowadays, many eCommerce stores like Shopify and Shoplazza see that opportunity and allow people to connect social media accounts and monitor the content or ad performance in a single background. However, the Instagram Shop is just an option. Streaming, gamification, etc., are also worth a try.

(Contributed by ​​Oluwafemi Adedeji & Hermes Fang)


About the Creator

Hermes Fang

Eyes open wide, feel your heart and it’s glowing.

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