Instagram Reels Shopping Mastery: Transforming Engagement and Sales in 2024

If you use Instagram for business, you must have observed by now that Instagram Reels are now shoppable, allowing creators to establish themselves as trusted product experts and users to shop directly from a reel.

What is the feature?

Instagram Reels Shopping is a new feature that allows users to discover and shop products within the Instagram app. Creators can tag products in their Reels and viewers can select the “View Products” button to either buy, save, or learn more about the featured products. 

This feature is available globally and businesses with Instagram Checkout enabled can make their products fully shoppable. Additionally, creators can tag products from partner brands in Reels, building on Instagram’s branded content tools. Shopping in Reels is a new way for businesses to leverage Instagram’s strong interest in expanding its opportunities for selling on the platform. 

Platforms with similar features

TikTok Shop

TikTok Shopping is the suite of solutions, features and tools that give businesses the opportunity to tap into the power of commerce on TikTok.

TikTok shop offers in-feed video, live shopping, product showcases, affiliate programs and shop ads. 

Social commerce sales are rapidly picking up, with eMarketer predicting that they will reach $67.32 billion in the U.S. alone in 2024. eMarketer also states that U.S. retail social commerce sales will reach $79.64 billion by 2025, with TikTok being a major part of it.

Also read: The Revolutionary Engagement Shift of TikTok

Youtube Shopping

YouTube Shopping lets eligible Creators easily promote products from their own stores or other brands across YouTube. Through YouTube Shopping, you can:

• Connect your store to YouTube to feature your own products in your content.
• Tag products from other brands in your content.
• Check your Shopping analytics in YouTube Analytics to view the performance of tagged products.

What’s in it for viewers?

Discover products organically: As you watch Reels, you’ll see little product tags popping up. Tap them to view details, pricing, and even purchase options without leaving the app.

Save for later: Found something you love but can’t buy right away? Reels Shopping lets you save tagged products for future reference.

Streamlined checkout: If you’re in a country with Instagram Checkout enabled, you can buy directly from the Reel! No more hopping between apps or remembering product names.

How can reels shopping help brands and influencers?

Instagram Reels Shopping can significantly benefit brands and influencers in several ways:

Increasing brand awareness and sales: Instagram Reels are a gold mine for increasing brand awareness and boosting sales on social media. 81% of Instagram users use it to research new products and services, and 90% follow at least one brand account.

Direct connection between brands and consumers: With brand content tags on Reels, influencers can more easily use branded products and provide a link for purchase, creating a more direct connection between brands and consumers. This feature allows influencers to directly tag products they are promoting in their Reels, creating more fruitful relationships between brands and influencers

Showcasing products and driving purchases: Brands and influencers can tag products in their Reels, allowing users to view those products and make purchases directly from the Reels. This feature streamlines the process from product discovery to purchase, making it easier for users to buy products they see in Reels.

Educational and engaging content: Instagram Reels provide a platform for brands and influencers to share educational and engaging content that features their products. This type of content, such as product how-tos and tutorials, can help drive engagement and influence purchasing decisions.

Best practices for brands to improve their selling game 

Create engaging content: Instagram Reels is a new way to showcase your products, so it’s important to create engaging content that resonates with your audience. You can use Reels to showcase your products in real-life situations, create quick tutorials, or try on clothes to show how they look.

Tag products in your Reels: Tagging products in your Reels is essential to make them shoppable. Make sure you have activated and configured the “Buy on Instagram” feature in your profile before tagging products.

Use Instagram Checkout: Instagram Checkout makes the purchase process smooth and easy for shoppers. Make sure your products are eligible for Instagram Checkout to increase your conversion rates.

Provide support through Instagram Direct: Eligible business accounts can sell products through Instagram Direct. Use this feature to provide support and answer any questions your customers may have.

Fill your Instagram shop’s catalogue: Make sure your Instagram shop’s catalogue is up-to-date and filled with your products. You can pull from an existing Facebook catalogue, connect to your e-commerce website, or create a new catalogue.

How will reels shopping impact influencer marketing on Instagram?

Instagram Reels shopping is expected to impact influencer marketing on Instagram in several ways:

Increased engagement: With the introduction of reels shopping feature, users can now discover and shop products directly within the app, making it easier for them to make purchases, leading to a much higher conversion vs if the link is somewhere else (increasing drop-offs).

Increased reach: Instagram Reels Ads can help brands reach a larger audience, with advertisers being able to reach 726.8 million users through this ad placement. This feature may further boost the popularity of Instagram Reels and attract more influencers to the platform.

Monetization Opportunities for Influencers: Instagram Reels Shopping could provide influencers with additional opportunities for monetization. By featuring and promoting products in their Reels, influencers might earn commissions through affiliate marketing or other partnership models.

Rise of Micro-Influencers: Short-form content like Reels thrives on authenticity and relatability, favouring micro-influencers with niche audiences. This opens doors for brands to collaborate with diverse voices who resonate better with specific demographics, potentially leading to more targeted and impactful campaigns. 

Influencer-driven sales: Influencers can directly tag products they are promoting in their Reels, making it easier for their followers to find and purchase the products. This feature may lead to more sales and revenue for both brands and influencers.

Transition to Sales Conversion-Oriented Influencer Marketing

Previously, influencer marketing primarily focused on creating brand awareness and engagement. However, the incorporation of direct shopping features within Reels on Instagram is reshaping this landscape by emphasizing sales conversion metrics as a critical evaluation criterion for influencers.

Data suggests that this shift has been underway:

Sales Metrics Taking Precedence: Brands are now prioritizing tangible sales metrics over traditional engagement indicators like likes and shares when assessing influencer collaborations. According to a survey by Influencer Marketing Hub, 67% of marketers were planning to measure influencer marketing success through conversions and sales in recent years.

Influencer Performance Tied to Revenue: Reels shopping enables influencers to directly promote products, allowing brands to measure their impact on sales through clicks, conversions, and purchases. This shift aligns an influencer’s success more closely with the brand’s bottom line, holding them accountable for driving actual sales.

Rise of Performance-Based Partnerships: Brands are increasingly opting for performance-based partnerships, where influencers earn incentives based on the sales they generate. This marks a significant shift from flat-fee collaborations, emphasizing rewarding influencers for their measurable sales contribution.

Potential Challenges

Overemphasis on Sales: The focus on conversion might overshadow the genuine connections and authenticity built by good influencer marketing. Overly promotional content can backfire, leading to audience fatigue and diminishing the influencer’s credibility.

Transparency and Disclosure Concerns: Clear disclosure of sponsored content remains crucial. As purchase intent becomes more immediate, ensuring transparency is vital to maintain audience trust and avoid accusations of deception.

Measuring Success Beyond Sales: While sales are important, influencer marketing encompasses broader goals like brand awareness, engagement, and community building. Attributing these aspects to Reels Shopping and moving beyond a purely sales-driven metric remains a challenge.

Content Saturation and Algorithm Fluctuations: The influx of product-focused Reels might lead to content saturation, making it harder for influencers to stand out. Additionally, Instagram’s algorithm changes could impact reach and visibility, requiring constant adaptation and strategic content planning.

Will You Be Selling on Reels?

As Instagram aims to enhance its role as a selling platform, integrating shopping into your content strategy becomes imperative. By making your content shoppable, you not only reach potential buyers but also elevate your brand’s visibility and engagement. In a landscape where entertainment and commerce seamlessly coexist, selling on Reels is not just an option; it’s a strategic move toward the future of influencer marketing.

In the ever-evolving world of social media, those who adapt and innovate thrive. So, will you be selling on Reels? The answer may very well shape the trajectory of your brand in the exciting realm of influencer marketing.