Instagram working on a standalone shopping app, The Verge reports

Instagram could be about
to move into e-commerce.
Jirapong
Manustrong / Shutterstock.com

• Instagram is working on a new standalone app focussed
  on shopping, reports The Verge.
• It would allow people to buy products directly from
  retailers they follow on Instagram.
• Amazon has shown third-party sellers can be a huge
  source of revenue.

Instagram is developing a new standalone app focussed on
shopping, The Verge reported on
Wednesday, citing people familiar with the matter.

The app would allow users to purchase directly from retailers
they follow on Instagram. The current Instagram app
started testing a shopping feature, which allows retailers to
tag specific products in photos in November 2016, and it rolled
out more widely in March 2017.

It is not certain when this new app, which could be called IG
Shopping, might launch. As with all apps still in development,
there’s always a chance it could be killed before it ever makes
it to market, but the Verge spoke to anonymous sources who said
that Instagram feels it’s well-positioned to make the move into
e-commerce.

Another source familiar with the company’s thinking, told the
website that Instagram could introduce enough tools and features
for retailers over time to challenge other dedicated e-commerce
platforms such as Shopify. They also said most retailers already
have Instagram accounts, so theoretically they would be inclined
to use paid business tools if they became available.

The set-up would not be dissimilar to Amazon, which provides a
platform for third-party sellers. It’s an important part of
Amazon’s income, generating $9.7 billion of revenue in the
second-quarter of 2018, up 40% year-on-year.

Nike is the retailer with the biggest single Instagram account,
according to Social
Blade, with over 80 million followers. Second is Victoria’s
Secret, which has almost 61 million followers.

Business Insider contacted Instagram to confirm whether the app
is in development.