Source: Business Insider
Shopping on Instagram is going to be huge, but it has barely gotten started. Just 12% of users currently use the Facebook -owned photo-sharing app for finding or shopping for products, according to new research from Cowen. By 2021, Instagram is predicted to generate $10 billion a year in new revenue from shopping. Click here for more BI Prime stories . Shopping on Instagram promises to be the next big money-making hit for the Facebook-owned photo-sharing app — but it still has a long way to go. New research from financial services firm Cowen found that just 12% of Instagram users currently use the app for shopping purposes — far behind better-established rivals in the space like Pinterest, with 45%. The data illustrates the opportunity — and challenge — ahead of Facebook, as it attempts to diversify away from its core advertising business and to muscle in on the ecommerce space. Instagram has been adding a bevvy of new features dedicated to helping users shop, including tags that highlight product costs and link out to websites to buy them, as well as an integrated checkout feature that allows users to buy goods without ever leaving the app.