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Shopping on Instagram has started to become a method that is becoming more common day by day and preferred by consumers especially abroad. Instagram recently announced two important developments in the field of e-commerce. First; The right shopping can be done from the story usage of the brands whose tests were started in June. The second is that there will be special shopping channels in the Explore tab of Instagram.

From Stories to Online Stores

Today, many brands and businesses are looking for various ways to bring their products to consumers. During this search, “easy accessibility” to the product is the most invested issue. Unlike the standard Instagram story usage that brands invest in, there are tags that link to the products, where you can make the purchase directly through the story, which you can see the screenshot below. Of course, this feature, which is very popular for a limited number of brands, currently operates in 46 countries. To explain with an example; When you press the label of the pants you see in a brand’s story, it directs you to that brand’s shopping page. Thanks to these tags, users will be able to visit the brands’ shopping sites, buy the product they see in the story or buy different products they see on the site. Of course, the critical point here is that that brand must have an e-commerce site in order to use this story model.

In addition to this feature, the new shopping channels that will take place in the Discover tab will bring products based on the interests of users, along with other personalized topic channels.

All these updates for the Instagram app show Instagram’s appetite to expand its e-commerce space. Although we do not observe an aggressive approach yet, the e-commerce channel is seen as a great opportunity for Instagram and these two updates signal that big steps will be taken for the growth of this channel in the coming period.

Competing with Amazon…

Facebook COO Sheryl Sandberg stated that when looking at the ways Facebook can earn through Instagram, they observe that there are more than 25 million business profiles on Instagram and that the application is likely to continue to grow by leaning more towards shopping. According to a recent report by The Verge, it was said that Instagram may be working on a standalone shopping app.
“Instagram is one of the fastest growing commerce channels we have,” says Satish Kanwar, VP of Product at Shopify. Shopify’s e-commerce platform, which is used by many companies active on Instagram, became one of the first companies to use the advertising model that allows direct sales via story earlier this year.

For Instagram, it becomes much more profitable to invest in e-commerce rather than just investing in new advertising models. Of course, this increases the desire of brands and businesses to be on Instagram. The app, which has more than one billion users and is estimated to be worth $100 billion, has prioritized its consumer-oriented features until recently. But given its growth over the past few years, she has her eye on brands and businesses and is looking for new ways to sell so they can be active on Instagram.

If this strategy works, Instagram could become a real Amazon competitor, not just a social media outlet. What do you think?


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