Step 1: Create a Business Portfolio
It can be created at: https://business.facebook.com/.
Complete Business Portfolio details after login.
Step 2. Create a Facebook Shop
Step 2.1. To start the Shop creation, go to All tools > Commerce in the left menu.
Step 2.2. Create a Shop by clicking on "Add account"
Step 2.3. Complete the Shop creation
Step 2.4. Facebook page has to be created for the sales channel
Remember: Adding E-commerce website as the category is mandatory while creating Facebook Page for integration to work. If not added at this step, you can add later from About section in Facebook page.
Step 2.5. Choose a Pre-created business portfolio or create a new business portfolio in this step
Step 2.6. Create a product catalogue and click Next. Complete all the steps and Submit by agreeing to TnCs.
Step 2.7. Facebook Shop Setup complete!!
Step 3. Create a Instagram Shop
Step 3.1. Click and open the created shop
Step 3.2. Add the Instagram sales channel by clicking on "Settings"
Step 3.3. Click on "Connect" to link to Instagram account to Shop