Facebook’s (NASDAQ:FB) Instagram is reportedly set to roll out a shopping app. Per The Verge, the app, which will most likely be named IG Shopping, is in the test phase.
Facebook is increasingly trying to diversify its revenue streams from a traditional ad-based business model. The company has been ramping up efforts to bring in new features to extend its offerings in various categories including e-commerce.
Instagram’s entry into the rapidly growing e-commerce market, particularly retail that is expected to reach $4 trillion by 2020 per emarketer, is a step toward that direction.
Notably, Instagram now has more than 1 billion monthly users. It was also one of the most downloaded apps on both iOS and Android in the first half of 2018. Moreover, it has nearly 25 million business profiles.
Facebook, Inc. Revenue (TTM)