What does an e-commerce app mean for Facebook?

Instagram might be launching a shopping app, according to sources. The Verge reported on this a few hours ago.

I think a lot of people forget that Facebook owns Instagram. I have been a huge proponent of Facebook, and I hold multiple positions in them. Their monetization potential for their apps are tremendous, and I think this new shopping app proves that.

This would catapult Facebook into the e-commerce realm, and they would now compete with the likes of Amazon. Will they be able to swoop in and steal all of Amazon’s business? LOL!! Absolutely not. But what they will do, is make revenue from it.

What the app will do

The app will be ‘standalone,’ which simply means it will be a separate app than the typical Instagram app.

According to The Verge, users will be able to follow merchants and purchase items from them, directly from the app.

According to Facebook’s Chief Operating Officer, Instagram currently has 25 million businesses on Instagram, and 4 out of every 5 users follow at least one business. WOW! That is some serious exposure.

What I think about this

Duh! I think everyone knows what I think. I am big on Facebook as a company, so I am thrilled at this news from an investors prospective. This just proves, to me, that Facebook’s potential is huge.

Money in Facebook’s pocket, is money in my pocket, since I am an owner in the company. So, anything they can do to monetize their businesses, I am all for. It’s as simple as that.



Categories: Investing

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