Instagram is now getting more serious about how to monetize its huge user base. While the popular Facebook-owned video and photo sharing already has an existing shopping feature, recent reports are now saying that the company is now developing a totally separate app just for shopping, which could mean that it's planning to get serious in the e-commerce segment and compete with more established companies such as Amazon and Alibaba.
Instagram could be developing a standalone shopping app which it may call IG Shopping upon launch, according to a report by The Verge. Users will be able to browse goods and even purchase them via the upcoming app. However, there seems to be some limitation as to what products will be viewed by the user as the report said that only items being sold by merchants already followed by the user will appear in the app's browsing mode.
However, The Verge warns that the app is currently in under development and there is still that possibility that the project might be scrapped before it will even be launched. The publication only cited unnamed sources who are familiar with the project but also added that Instagram has declined to make an official comment on the matter.
Instagram is confident that it is well positioned to enter into e-commerce, the report added. The social network already has 25 million registered businesses and a staggering 2 million of these business accounts already advertise on the platform. Eighty percent of Instagram users already follow at least one business account which means there is already an extensive network between potential buyers and sellers, a fact that the company could exploit for additional revenue.
Instagram is not exactly new to the e-commerce space. At the moment, it has a shopping feature that is integrated into the main app. Launched in March 2017 in the US, it allows businesses to create shoppable organic posts, where companies can tag their posts and link them to their own eCommerce site. App users can just browse through these posts and, if they like a particular product, a click on the picture will redirect them to the brand's shopping page.
The shopping feature proved to be such a success that Instagram even expanded its range overseas early this year. In June 2018, the company started testing out a new feature which lets users shop direct from Instagram Stories.
Aside from connecting people together, social media platforms are perfectly positioned to take advantage of their user base and enter into the e-commerce segment. While Amazon had a headstart in the area, popular social media companies such as Facebook and Instagram enjoy the advantage of having large user bases as potential customers.
