Instagram is introducing Shopping capabilities within Reels, its short-form video feature designed to compete with TikTok. This new functionality, initially announced in October, represents a continuing effort by the company to integrate shopping experiences throughout the Instagram application.

With this release, businesses and content creators alike will have the ability to associate products with their Reels – the concise videos now accessible through a dedicated tab in Instagram following last month’s app update.

Furthermore, creators can utilize a “Branded Content” tag within their Reels to clearly indicate when they are collaborating with a brand for promotional purposes, representing a form of sponsored content.

This update further emphasizes the importance of shopping within Instagram and coincides with a growing trend of increased adoption of video-based shopping. Numerous emerging companies specializing in live-stream video shopping are gaining prominence. Recent investment activity has supported platforms such as Popshop Live and Bambuser, while established technology companies like Alibaba, Amazon, Google, and JD.com are also actively participating in the video shopping landscape.

Notably, Instagram’s competitor, TikTok, has already established a partnership with Shopify for e-commerce and currently supports brands through direct advertising and influencer collaborations, thereby challenging Instagram’s market position. TikTok also received acquisition interest from Walmart during the period when a potential U.S. ban was being considered. In 2020, TikTok surpassed Instagram in terms of global app downloads, signaling a significant change in how younger demographics engage with social media platforms.

Aiming to maintain its relevance, Instagram has redesigned its application – a change that received some negative feedback from users regarding the relocation of core features – with the intention of becoming a leading destination for online shopping. The company earns revenue through transactions completed within the app using Facebook Pay, providing an additional income stream beyond traditional advertising.

Currently, Instagram users can make purchases from videos featured in Feed, Stories, Live, IGTV, and now, Reels.

The company states that this feature is being deployed worldwide, beginning today.