Reports suggest that Instagram is working on a new standalone app dedicated to shopping. The Verge reported that app is called IG Shopping and it will allow users to browse through a collection of goods from merchants that they follow and purchase from them directly via the e-commerce app. Sources close to Instagram have declined to comment on this latest development.
The has no prior release date schedules and the development work is still going on and there is always a possibility of it being scraped even before seeing the days light. Though the sources familiar with the current developments of the app said Instagram believes the app is all set to make a major expansion into e-commerce.
The current app development can sure pose a challenge for e-commerce platforms like Shopify. As it is catering to a lot of young people, Instagram can sure be able to target these people makes sense. Earlier this year Instagram had released shopping tools to eight countries, this allowed the merchants to display their products’ prices on their posts.
Speaking on the occasion of Facebook Chief Operating Officer Sheryl Sandberg said – “Four in five Instagram users follows at least one business. Creating a standalone app would allow the company to provide a dedicated home for an increasingly popular activity on Instagram while also expanding opportunities for revenue.”
Right now more than 25 million businesses have Instagram accounts and 2 million of them are advertisers. Hence the development of the shopping app makes perfect business sense.
In the near future, we can see Facebook developing more tools for merchants who are building businesses on Instagram and try to compete directly with Shopify. With many users already having an Instagram account, will be most willing to buy a paid business tool it is available.
Instagram has always been upbeat when it comes to offering apps, Shopping app is just another addition. Earlier last December, Instagram has been testing the new messaging app called Direct and in June it introduced the IGTV app which is a direct competitor of YouTube.