Instagram Shopping has become a powerful tool for retailers to feature their products in Instagram posts.
According to research by GlobalData, the data and analytics company, 38.7% of online shoppers aged 16 to 24 years are now using Instagram Shopping to purchase an item, highlighting the potential of the feature for product marketers and brands.
Among the 25 to 34-year-olds, 34.3% of users were making purchases based on Instagram Shopping posts, compared to 20.8% among the 35 to 44-year-olds.
The study demonstrates just how much more receptive the younger generations are to the format compared to older generations.
“Retailers targeting young consumers need to seize the opportunity created by the new shopping habits of this demographic as they increasingly use Instagram Shopping as a platform to make purchases,” said Emily Salter, Retail Analyst at GlobalData.
“Using the tool, retailers can promote specific products to a huge number of followers – for example, H&M and ASOS have 30.0m and 9.3m respectively – and engaged shoppers, in particular boosting impulse purchases.”
Instagram provides a more personalised advertising and shopping experience as users choose to follow brands and retailers and can search for products and tags they are interested in. This ensures that consumers are exposed to more relevant content.
“However, stock availability is vital to ensure the effective use of Instagram Shopping, as the products featured and tagged on Instagram Shopping have heightened visibility compared to the rest of the retailer’s products. Retailers should be prepared for greater popularity of featured items and use forecasts based on previous reactions to avoid stock selling out too quickly. For instance, Marks & Spencer often highlights products on Instagram Shopping that rapidly sell out, leading to numerous comments from frustrated shoppers, creating a more negative perception of the shopping experience,” Salter added.
Instagram Shopping may be particularly suitable for smaller retailers without large resources to invest heavily in boosting mobile sales. At the same time, it provides a good overview of which products and ads performed particularly well.