The digital shopping landscape continues to evolve at pace, and few platforms have adapted as decisively as Instagram. With the introduction of its dedicated Shop tab in late 2020, Instagram signalled a meaningful shift in how Australians discover, explore, and purchase products online. Launched just ahead of what many expected to be the most competitive Christmas retail season on record, this update represented more than a new feature. It marked Instagram's intent to become a core commerce destination.
According to Facebook's announcement at the time, the events of 2020 permanently reshaped how Australians shop. Traditional in-store browsing was replaced or supplemented by mobile-first experiences, often out of necessity. Even consumers who had previously resisted online shopping were prompted to adapt. Instagram did not simply respond to this shift. It positioned itself to actively shape the future of mobile commerce.
Understanding the Shop tab experience
The Shop tab occupies prominent space within the Instagram app, making it immediately accessible from the home screen. Its purpose is discovery rather than direct selling. The experience is curated, personalised, and designed to align with how people already use social media.
Rather than replicating the structure of traditional eCommerce platforms, Instagram focuses on inspiration. Users typically open Instagram to be entertained, connect with others, and discover new ideas. Shopping is introduced naturally within that context.
Key elements of the Shop tab include:
- Personalised product recommendations based on user behaviour
- Editors' picks that showcase trending items and emerging brands
- Shoppable IGTV videos that blend storytelling with product discovery
This approach avoids overwhelming users with endless product grids. Instead, it delivers a curated browsing experience that feels consistent with social content. According to AdNews, brands that adopted Instagram shopping features early experienced measurable increases in both engagement and conversion rates.
The influence on Australian shopping behaviour has been significant. Research shows that 80% of Australians have made a purchase decision on the platform, while 83% report discovering new products through Instagram. These figures position the Shop tab as a core component of the modern marketing mix, not a supplementary channel.
InstaNight: A world-first shopping event
To support the Australian launch of the Shop tab, Instagram introduced InstaNight, a world-first in-app shopping event. Designed specifically for the local market, the event featured more than 50 Australian retailers, ranging from major brands to independent businesses.
InstaNight offered users access to exclusive sales and products unavailable elsewhere. This created urgency and positioned social shopping as an experience rather than a transaction.
A senior Facebook director described the initiative as a way to support Australian businesses during an exceptionally challenging year. This sentiment reflected genuine market conditions. Throughout 2020, retailers faced store closures, disrupted supply chains, and rapid shifts in consumer behaviour. InstaNight provided visibility, reach, and commercial opportunity at a critical moment.
As reported by Mumbrella, social media had already become a key sales channel, with 30.3% of Australians purchasing goods via social platforms. InstaNight demonstrated how platforms could evolve beyond advertising and become active drivers of commerce.
The acceleration of eCommerce innovation
The Shop tab launch followed a broader acceleration in Facebook's eCommerce roadmap. Earlier in 2020, the company introduced Facebook Shops to help businesses establish digital storefronts across Facebook and Instagram. These tools were free, accessible, and designed to reduce barriers to entry.
The impact was measurable. Businesses using Facebook and Instagram commerce tools reported revenue increases of nearly 10% year-on-year, despite operating during a period of economic uncertainty.
According to Marketing Mag, Australia ranked third globally for social commerce adoption, representing more than 30% of all internet users. This high adoption rate made Australia an ideal testing ground for new commerce features and innovations.
The broader transformation of social shopping
Instagram's Shop tab is one part of a wider commerce ecosystem. Shopping functionality has been embedded across the platform, including Stories, Reels, IGTV, and the Explore page. Each surface offers opportunities for discovery and conversion without forcing users to leave the app.
This reflects how modern consumers behave. Purchasing journeys are rarely linear. Users may discover a product while scrolling, save it for later, share it with friends, and return days or weeks later to complete a purchase. Instagram's integrated commerce experience supports this behaviour naturally.
These tools have also levelled the playing field for smaller businesses. Previously, immersive digital shopping experiences required significant budgets and technical resources. Instagram enables small brands and creators to tag products, showcase offerings, and drive sales without complex infrastructure.
For businesses willing to invest in understanding their audience and creating meaningful content, Instagram offers a direct path to relationship-building and long-term value creation.
Shifting expectations and what comes next
As social commerce has matured, consumer expectations have evolved. Shoppers increasingly expect to browse and purchase without leaving their preferred platforms. Discovery, entertainment, and shopping now exist within the same experience.
For retailers, this requires a change in mindset. Success depends on creating content that informs, inspires, and engages, not simply listing products. It also requires ongoing investment in community building rather than one-off campaigns.
Instagram's commerce ecosystem continues to expand, with new features and refinements regularly introduced. For Australian retailers navigating an increasingly digital marketplace, social selling has moved from optional to essential.
If you would like to understand whether Instagram shopping is right for your business, reach out to an ADMATICian today.