Instagram is Stepping Back from Shopping Features

Instagram Steps Back from Shopping Features.

Instagram is currently seeking to scale back some of its newest features as it enters the fourth quarter, following a trying year of aggressive growth. In recent AMAs, CEO Adam Mosseri acknowledged that they had gone “too far into video,” implying a reduction in the platform's unpopular focus on video material. This week, The Information reported that Instagram was considering eliminating shopping capabilities from the app.

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“Shifts in company priorities” is the reason for this move, as distributed to company staff in an internal memo on Tuesday, reported by The Information. Instagram plans to replace its current shopping page with a simpler and less personalized e-commerce feature called “Tab Lite.” The memo described the shift as “a new Northstar… for the commerce organization that (is) more directly tied to advertising revenue for Meta”.

According to CNBC, Instagram's new location for its first-ever physical store will be in New York City. The decision appears to match up with Meta's efforts to scale back its e-commerce activities, as Facebook's “Live Shopping” feature will be phased out on October 1st. Despite this, a Meta spokesperson told Insider that commerce is still critical for Instagram and that the company has ideas about how it can continue integrating e-commerce into the app's features.

This comes on the heels of last week's news that Meta would be testing paid features across its platforms, including Instagram, in an effort to boost income after the company's first revenue decline and loss in profit earlier this year.

Tabs Lite, a sleek new version of Google's mobile search app, is now available to download via the Play Store. On Wednesday, public tests began and will continue in the months ahead. The company has tentative plans in place to remove the button that takes users back to the original shopping page by March 2023.

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