How to Set Up Instagram Shop in 2025: Everything You Need to Know

Instagram isn’t just for scrolling anymore, it’s for shopping. If you’re selling anything physical in 2025 and not using Instagram Shop, you're missing one of the most powerful (and underused) eCommerce tools on the internet.

This guide covers everything you need to know, from setup to strategy. Whether you're a small business, creator brand, or online store owner, we’ll walk you through how to set up Instagram Shop in 2025 and start selling directly on the platform.

What is Instagram Shopping?

Instagram Shopping is a built-in feature that lets businesses sell physical products directly on Instagram. It turns your profile into a storefront and allows you to tag products in your posts, Reels, Stories, Lives, and carousel galleries.

Shoppers can click on a product, view details, and either purchase through your website or, if you're eligible, checkout directly within the Instagram app.

Key features include:

• Product tagging across all content formats

• Customizable Shop tab on your profile

• In-app checkout (available in select countries)

• Shoppable collections and drops

  
  

It’s fast, visual, mobile-first, and designed for how people naturally browse and buy.

Why Sell on Instagram in 2025?

Instagram is where discovery meets purchase. Users aren't just there to connect with friends, they’re browsing for inspiration, trends, and products.

Here’s why Instagram Shop still matters in 2025:

• 1 in 2 users use Instagram to discover new brands

• 44% of users shop on the platform weekly

• Product Reels now account for 42% of Instagram's shopping clicks

• It reduces friction. Shoppers can purchase without ever leaving the app

  
  

Most importantly, Instagram’s AI now pushes shoppable content into Explore, Reels, and suggested posts, making it easier than ever to get discovered by new audiences.

How to Set Up Instagram Shop in 2025

Setting up Instagram Shop isn’t as complex as it used to be, but you still need to follow the steps carefully to avoid delays or rejections.

Step 1: Switch to a Business or Creator Account

• Go to your profile

• Tap Settings > Account > Switch to Professional

• Select Business or Creator

  
  

This unlocks Instagram Shopping tools and analytics.

Step 2: Set Up Meta Business Manager

Go to business.facebook.com and:

• Create a Business Manager

• Connect your Instagram account and Facebook Page

• Verify your website domain under “Brand Safety”

  
  

Domain verification is crucial. Meta won’t approve your Shop without it.

Step 3: Add a Product Catalog

Via Meta Commerce Manager, either:

• Manually upload products with photos, descriptions, prices, and links

• Or sync with Shopify, WooCommerce, or BigCommerce for automated updates

  
  

Make sure your products:

• Match your website domain

• Follow Meta’s commerce policies (physical goods only)

• Use clear images and optimized descriptions

  
  

Step 4: Submit for Review

In Instagram:

• Go to Settings > Business > Set Up Instagram Shopping

• Link your product catalog

• Submit for approval

  
  

Review usually takes 24–72 hours, depending on your catalog size and industry.

Step 5: Enable Shopping

Once approved:

• Go to Settings > Business > Shopping

• Select your product catalog

• Tap “Done”

  
  

You’re now ready to start tagging products and building your Instagram storefront.

Requirements to Sell on Instagram

Before you apply, make sure your business meets the current requirements:

✅ A Business or Creator account

✅ A connected Facebook Page

✅ A verified Meta Business Manager

✅ A product catalog with physical items

✅ A functional website that matches your catalog’s domain

✅ Compliance with Meta’s Commerce and Community Guidelines

⚠️ Services, digital products, and drop-shipped items often get flagged or rejected.

How Much Does it Cost to Sell on Instagram?

Setting up Instagram Shop is free, and as of 2025, so is Instagram Checkout for most sellers.

Feature	Cost
Instagram Shop setup	Free
Product tagging	Free
External checkout (via your website)	Free
Instagram Checkout (in-app purchases)	Free for most U.S.-based sellers (Meta waived the 5% fee in 2023)

Meta originally charged a 5% selling fee for in-app purchases using Instagram Checkout. However, that fee was waived in 2023 and remains waived for the foreseeable future as part of Meta’s small business support initiative.

💡 Good to know: Meta may reintroduce fees in the future or apply them in other regions, so always check Meta’s Commerce Policies for current terms.

How to Effectively Sell on Instagram

Once your shop is set up, the real work begins: converting content into clicks.

Here’s what actually works in 2025:

1. Tag Products in Every Content Format

Every piece of content you post should be shoppable. Instagram gives you multiple ways to tag products, and each format taps into different user behaviors.

• Feed Posts: Still effective for storytelling, reviews, and carousels.

• Reels: Great for reach and discovery, especially when paired with trending audio.

• Stories: Use the Product Sticker to create urgency (“Only a few left!”) or highlight reviews.

• Lives: Pre-load products into your Live stream so viewers can shop in real-time.

• Carousels: Tag multiple products across different slides, ideal for bundles, collections, or styling tips.

  
  

Pro tip: Avoid tagging every product in one post unless it makes contextual sense. Too many tags can overwhelm or confuse the viewer.

2. Customize Your Shop Like It’s a Storefront

Think of your Instagram Shop tab as your mobile homepage. When users land there, you want them to know:

• What you sell

• What’s new

• What’s relevant to them

  
  

Use Shop Collections to create an intuitive shopping experience:

• “New Arrivals”

• “Best Sellers”

• “Gifts Under $50”

• “Seasonal Picks”

• “Staff Favorites”

  
  

Each collection should have a purpose and match how your customers actually shop.

Tip: Update collections regularly to keep your shop feeling fresh. You can rearrange or pin collections based on what’s performing or what’s relevant seasonally.

3. Build a Shoppable Reels Strategy

Reels are no longer optional. They’re one of Instagram’s most powerful sales tools, if you use them right.

How to make Reels that sell:

• Keep it short (7-12 seconds is the sweet spot)

• Show your product in use, not just posed.

• Use trending audio (check what’s hot in your niche)

• Add clear CTAs like “Shop now” or “Tap the tag”

• Tag the product before publishing to make it instantly shoppable

  
  

Bonus: Reels tagged with products may get pushed into the Shop tab, Reels Explore, and in-feed recommendations, giving you free reach.

4. Run Product Drops to Create Buzz

Instagram’s Drop feature lets you build hype before you launch. When you create a product drop:

• Users can set reminders to be notified when it goes live

• You can showcase the item in Stories and Reels

• The Drop appears in Instagram’s Shopping Explore tab, increasing discoverability

  
  

Use it for:

• New product launches

• Collabs

• Limited editions

• Flash sales

  
  

It’s a great way to turn interest into action, especially with Gen Z shoppers who value exclusivity.

5. Tap Into User-Generated Content (UGC)

Customer photos and videos sell better than branded content. Why? Because people trust people.

Ways to collect and use UGC:

• Ask customers to tag your products in their posts

• Run hashtag campaigns (“Tag us with #ShopNameStyle for a chance to be featured”)

• Share UGC to your feed or Stories—and tag the products yourself

• Feature customer posts inside your Shop (yes, you can now request to add customer content to your storefront)

  
  

UGC builds trust and gives new buyers visual proof your product delivers.

6. Post Consistently, Not Constantly

Instagram’s algorithm favors accounts that post regularly and engage with their audience. That doesn’t mean you need to be online 24/7, but it does mean:

• Create a weekly content calendar

• Mix up post types (Reels, Stories, Lives, carousels)

• Engage with comments and DMs quickly

• Use scheduling tools like Alkai to plan ahead

  
  

Consistency builds trust, keeps you visible, and helps shoppers feel confident buying from you.

7. Use Paid Promotion Strategically

Credits: Buffer

Even a small ad budget can drive serious results on Instagram, especially when combined with shoppable content.

Options that work well:

• Boosted product-tagged posts: Reach a broader but similar audience.

• Reels ads: Target users with quick, shoppable videos using popular audio.

• Dynamic product ads: Automatically show the most relevant product to each viewer based on their browsing behavior.

  
  

Start small (even $5 - $10/day), and double down on what’s converting.

Conclusion

Instagram Shop in 2025 is more than a feature—it’s a sales engine. When set up correctly, it transforms your Instagram profile into a discoverable, shoppable storefront that converts your followers into customers.

Whether you're just getting started or optimizing an existing store, focus on:

• Meeting setup requirements

• Using product tags across formats

• Creating consistent, visually engaging content

• Leveraging tools like Drops, Collections, and Reels

  
  

Once you’ve built momentum, Instagram Shop can drive real, repeatable revenue—right from your feed.

FAQs

Is Instagram Shop available in all countries?

No, Instagram Checkout (in-app purchases) is only available in select countries like the U.S., U.K., Canada, and Australia. But you can link to your external store globally.

Can I sell digital products or services?

No. As of 2025, Instagram only allows the sale of physical products that comply with Meta’s commerce policies.

What happens if my Shop gets rejected?

Double-check your catalog, verify your domain, and make sure your products follow Meta’s policies. Fix any issues and reapply through Commerce Manager.

Do I need a Facebook Page to use Instagram Shop?

Yes. Your Instagram Business or Creator account must be linked to a Facebook Page via Meta Business Suite.

How long does it take to get approved?

Typically 1–3 business days, but it can take longer depending on catalog size, product type, and region.