A new app that may be called IG Shopping will be Instagram's shot at the world of e-commerce. It's still in development and the release date is still unknown to the public, but it could be a game changer.
According to The Verge, the app could also get canceled, but if it does make it's way to the public, this would operate in a similar fashion to Instagram. This means users could browse selections of products from merchants, who they also follow.
Users will purchase items directly from IG Shopping, which is not the case with traditional Instagram purchasing that normally requires buyers to follow links to the seller's website connected to the image.
The standalone app could really benefit both Instagram and businesses everywhere by connecting companies from around the globe with customers, while the app would benefit Instagram because of the fees that are likely to be slapped onto the seller. While this is not set in stone as of yet, it is common practice for websites and other online retailers that act as a middleman to charge a listing fee or even a sold fee to the seller. This is actually exactly what the e-commerce website Etsy does.
Some of the items already sold on Instagram are just digital products such as advertising an account for a period of time or aiding companies set up post management and content moderation. While these products are useful in the current market, IG Shopping could be different.
While IG Shopping is a great concept, it's not a new thing on Instagram. In fact, the company tested the feature in November 2016 and later opened it up to the world in March last year. Currently, Instagram is looking to expand this feature to allow people to buy from stories.
Instagram is not the only app that is looking into shopping directly, Facebook has also been doing that. Many businesses only sell on Facebook since the market is just so large.
Overall, Instagram really has something on their hands, but it depends on what they can offer the merchants as they are one of the most important parties in the success of the IG Shopping app. We also don't know how the shopping feature on Instagram will be affected by this change, especially with some of the products that are currently offered to people.