Updated: Aug 27, 2019
Over the last three years, Instagram has introduced several add-on features for businesses to facilitate commerce on the platform.
Instagram has a visually superior discovery platform, Better microtargeting through hashtags and Direct contact between buyer and seller.
Instagram is estimated to be a global market worth $10 billion by 2021, according to a Deutsche Bank analysis. Over 80% of Instagram users follow a business account and 20 Million users visit a business profile at least once a day.
A recent report by performance marketing firm Merkle says there’s been a 114% increase in web referrals through Instagram between Q1 2018 and Q1 2019.
Users can shop using the Shop Now button seen at the end of a few sponsored posts.
Instagram also allows businesses to use Shoppable Tags for regular posts and Insta Stories. Users can tap on a tag in a picture or a video to buy products directly from a brand’s site.
Additionally, the Explore section has a separate vertical titled Shop that showcases brands across categories based on user’s interest.