How to Boost Your Sales: Setting Up an Instagram Shop That Converts Followers to Customers

Jessica Pridmore • June 3, 2025

In today’s digital age, the Instagram shop is more than just a trend. It is a powerful sales strategy. With over 1 billion Instagram users worldwide and 130 million tapping on shopping posts each month, brands that aren’t leveraging this social network are missing out on a goldmine of potential customers.


This comprehensive guide from Social Media Time will show you how to boost your sales: setting up an Instagram shop that converts followers to customers. Whether you’re new to Instagram marketing or looking to refine your existing Instagram sales funnel, this is your ultimate roadmap.

1. Why Instagram Shopping Matters for Your Business

An Instagram shop allows businesses to display their product catalogue directly within the Instagram app. Users can browse, save and purchase products without ever leaving the platform. For brands, this reduces friction in the buying process and makes it easier to convert Instagram followers into paying customers.


  • Unlike a personal Instagram account, a business account on Instagram provides a suite of tools designed to drive sales, such as:
  • Access to Instagram Insights
  • The ability to tag products in posts and stories
  • Promotion via Instagram ads and retargeting ads
  • Integration with your e-commerce store or Facebook Business Page


These easy-to-use features empower you to create a streamlined and immersive shopping experience.

2. Step-by-Step: How to Set Up an Instagram Shop

Setting up your Instagram shop the right way is critical for success. Here's how:


Step 1: Convert to an Instagram Business Account


Start by switching to a business account.


  • Go to settings in your Instagram app
  • Tap “Account”
  • Select “Switch to Professional Account” and choose “Business”


This gives you access to analytics, Instagram tools, and shopping features.


Step 2: Connect to a Facebook Business Page


An Instagram shop must be connected to a Facebook Business Page. This step is vital for syncing your product catalogue and enabling product tagging.


  • Head to Facebook’s Business Manager
  • Link your Instagram business profile under Business Settings > Accounts > Instagram Accounts


Step 3: Upload Your Product Catalogue


You can either:


  • Upload your products manually through Facebook Commerce Manager
  • Or use an e-commerce platform like Shopify or BigCommerce to sync your catalogue


Make sure to include high quality images, accurate descriptions and prices. Your catalogue is the backbone of your shoppable Instagram posts.


Step 4: Submit Your Account for Review


Instagram will review your account to ensure it complies with its commerce policies. This process typically takes a few days. Once approved, you’ll unlock the ability to tag products and set up the Instagram shop tab on your profile.

3. Crafting a Profile That Converts

Your Instagram profile is prime real estate. It should reflect your brand’s voice, build social proof and guide users through your sales funnel. Optimise it by:


  • Using a clear, keyword-rich Instagram bio
  • Adding a website link or a custom landing page
  • Highlighting customer testimonials via Story Highlights
  • Including high-quality visuals that reflect your brand personality


This creates a professional first impression and builds trust with Instagram users.

4. Shoppable Posts: The Key to Conversions

With your shop live, start posting shoppable Instagram posts. These are regular posts where you tag products, turning your Instagram feed into a digital storefront.


Tips to maximise effectiveness:


  • Use high-quality images and behind-the-scenes content
  • Mix in video ads for dynamic engagement
  • Add product tags early in carousels to capture attention
  • Showcase different product angles and uses
  • Regularly post content to stay top-of-mind


These posts shorten the customer journey by letting users shop directly from your Instagram account.

5. Drive Traffic with Instagram Stories & Highlights

Instagram stories are one of the most powerful tools for boosting social media engagement. With features like polls, countdowns and direct links, you can easily guide your audience toward purchase.


  • Tag products in your stories
  • Create a “Shop Now” Story Highlight
  • Share exclusive promotions to create urgency
  • Add customer testimonials for trust


Use Stories daily to remain visible in your followers’ feeds and reinforce your product offerings.

6. Leverage User Generated Content for Authenticity

Nothing sells like a happy customer. Leverage user-generated content (UGC) to create authentic and trustworthy experiences.


Ask your customers to:


  • Tag your brand when they post
  • Use branded hashtags
  • Participate in social media contests


UGC builds social proof, showcases real-life product use and encourages repeat purchases. It also provides you with a content pipeline that feels organic and relatable.

7. Engage Through Direct Messages

Engagement isn’t just about likes and comments. Direct messages (DMs) are an overlooked channel for building relationships and converting followers into customers.


Encourage conversations by:


  • Offering support via DMs
  • Responding quickly to queries
  • Using quick replies to streamline communication
  • Offering exclusive promotions for DM inquiries


This personalised touch can lead to higher conversion rates and a more loyal customer base.

8. Run Targeted Instagram Ads

Want to scale quickly? Instagram ads allow you to reach a target audience beyond your followers. From video ads to carousel formats, the platform offers robust ad options.


Use ads to:


  • Retarget users who’ve visited your shop
  • Promote best-selling products
  • Drive traffic to a custom landing page
  • Increase visibility among new customers


Combine your ads with Instagram insights to refine your strategy based on audience demographics and engagement.

9. Build a Strong Instagram Sales Funnel

To convert followers, you need a structured Instagram sales funnel. Here’s what it looks like:


  1. Awareness: Use reels, influencers and Instagram posts to attract users
  2. Interest: Educate via Instagram stories, lives and UGC
  3. Decision: Push shoppable posts and exclusive promotions
  4. Action: Direct to purchase via the Instagram shop
  5. Retention: Follow up with content, DMs and loyalty offers


This full-funnel approach ensures you’re nurturing your audience at every stage.

10. Collaborate with Influencers for Maximum Reach

Influencer marketing helps you reach potential customers through voices they already trust. Partner with influencers who align with your brand to showcase your products in authentic ways.


  • Focus on micro-influencers with high engagement.
  • Offer affiliate links or promo codes
  • Use influencers in both feed posts and stories


This increases visibility and builds trust faster than traditional ads.

11. Optimise with Instagram Insights

Finally, no strategy is complete without measurement. Use Instagram Insights to:


  • Track which Instagram posts drive the most clicks
  • See what times your target audience is most active
  • Identify high-performing shopping features
  • Understand what content leads to more sales


Use this data to tweak your content and keep boosting engagement for long-term results.

Final Thoughts: Turning Instagram Followers into Loyal Customers

Setting up an Instagram shop isn’t just about tagging products. It is about creating a full-blown sales strategy on one of the most engaging social media platforms. By aligning your content, leveraging social proof, using Instagram ads and tapping into analytics, you can successfully convert Instagram followers into loyal customers.


With tools like shoppable posts, user-generated content, Instagram Stories and retargeting ads, you’re equipped to transform your social media presence into a powerful online store.


If you’re serious about growing your Instagram sales, there’s no better time than now to set up an Instagram shop that not only looks good but delivers real results.


Need help getting started? At Social Media Time, we specialise in helping businesses build high-converting Instagram shops. From setup to content strategy, we’ve got your back. Let’s turn those followers into paying customers together.

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