(PresidentialHill.com)- Instagram plans to drastically scale back its current shopping feature as its parent company Meta re-examines its approach to e-commerce.
According to a report in The Information, in an internal memo to employees last week, Instagram announced that “given shifts in company priorities,” the existing Shopping page will eventually be phased out.
Instead, the company will test a simpler, less personalized version of the shopping page called “Tab Lite.” Testing on “Tab Lite” began last Wednesday.
According to the memo, the decision reflects Meta’s “new northstar and goals for the commerce organization that are more directly tied to advertising revenue for Meta.”
The initial launch of Instagram’s shopping tab was successful. However, while the Shopping page was popular during the COVID lockdowns when online shopping increased, once retail stores reopened, online shopping trends returned to pre-pandemic levels.
Meanwhile, other apps like TikTok, whose shopping features have had great success overseas, abandoned plans to launch an e-commerce feature in the United States after a major test in the UK was deemed a failure.
The UK test went so badly that half of the staff working on the e-commerce project walked out and the executive in charge was replaced after he said he didn’t believe in UK employment law.
In China and other Asian countries, live-streamed e-commerce is popular, with advertisers showing QVC-style videos accompanied by a clickable shopping basket.
The shopping feature on the Chinese version of TikTok, Douyin, has enjoyed rapid growth. TikTok’s parent company, ByteDance, has reportedly sold 10 billion products through this feature.