Instagram Expands Shopping Functionality to IGTV and Reels

Businesses and creators can now sell items directly in-app through Stories, Live, IGTV, and soon, Reels.

October 6, 2020

Need to Know

Instagram has expanded its Shopping functionality to now include almost every feature of the app: Live, Stories, IGTV, and later this year, Reels.
The new feature offers more ways for small business owners and creators to earn money online while providing a new revenue stream for the social media giant.
Facebook-owned Instagram makes money through advertising as well as a selling fee on in-app purchases.

Analysis

Instagram has updated its Instagram Shopping functionality to offer even more ways for businesses to sell directly to their audiences.

After expanding Shopping features to include small business owners and creators this past spring, the social media mega platform is now evolving once again to include its Shopping service across IGTV and Reels.

Now, Instagram users can shop directly from Instagram’s Live, Stories, IGTV, and later this year, Reels features.

“Digital creators and brands help bring emerging culture to Instagram, and people come to Instagram to get inspired by them. By bringing shopping to IGTV and Reels, we’re making it easy to shop directly from videos. And in turn, helping sellers share their story, reach customers, and make a living,” said Instagram COO Justin Osofsky in a statement.

The changes are designed to appeal to businesses and content creators who want more ways to monetize their Instagram platforms without having to direct fans to an online shop.

This new functionality allows Instagram to collect a “selling fee” on those purchases (taking 5% per shipment, which are waived until December 31), producing a new revenue stream for the company, as well as incentivizing businesses to advertise within the app (in 2019, Instagram generated $20 billion in advertising revenue).

As more and more businesses move online or improve their digital strategy, Facebook, which owns Instagram, has put a spotlight on e-commerce too. Big brands and small businesses alike can now benefit from Instagram’s in-app Shopping functionality, and with the holidays approaching, the timing couldn’t be better.