Instagram’s growing focus on e-commerce and making its users to transact business with the new checkout feature will be so successful that the app will bring in US$10 billion in revenue in 2021 alone.
After years of ogling beautiful images of food, fashion and design on Instagram, people will now be able to buy things they see and like directly through the app — providing instant gratification for the trend-obsessed and a new source of income for parent Facebook.
Now the photo-sharing app is testing a shopping feature, called Checkout, with a handful of retailers including Nike Inc. and designer fashion platform Revolve.
“Over time, as we are creating value for people, this could be a significant part of our business,” said Vishal Shah, Instagram’s head of product.
On Checkout, people will be able to buy directly within Instagram, rather than being directed to a retailer’s website.
It’s unlikely Instagram will release further details about the financial specifics until next year, although Shah said he sees it as the next big business model opportunity after advertising.