The application is still in development, and it is not yet known when it will be released and whether it will be released at all. Instagram and so actively used by brands to promote their products.
Companies not only use advertising in the application and post information about their products, but also order advertisements from celebrities to attract more attention. By launching an application for shopping, Instagram will make the process of purchasing goods more simple and convenient for users, and also will be able to receive revenue from sales.
Facebook can add brand-friendly tools to the IG Shopping platform, thus luring them from other services, like Shopify. Many brands already use Instagram as the main platform for promotion, and the company can provide more opportunities for this.
At the moment, Instagram allows brands to post links in stories, and this shows the commercial potential of the social network. The IGTV service was not as welcome as Facebook expected, but the shopping application has a lot of potentials.
Many celebrities sell their merchants using Instagram. They could use a separate platform for shopping. It is unlikely that the new Instagram service will compete with Amazon, but platforms like Shopify should beware.