Instagram to Retool Shopping Experience, Focus More on Ads

Instagram will be cutting back on its shopping features, according to a report Tuesday (Sept. 6) from The Information, citing an internal memo the company sent to staff.

The reason is the company is focusing on eCommerce efforts that directly drive ads. Staff were notified in the memo that Instagram’s existing shopping page will eventually disappear because of “shifts in company priorities” with parent company Meta.

Instagram won’t be cutting out shopping altogether, as it plans to test out a simpler, less personalized shopping option called “Tab Lite.”

The company will begin a public test Wednesday (Sept. 7) of changes to the app, to switch users to the Tab Lite version of the shopping page. The company reportedly plans to phase out the button sending users to its old shopping app by March.

Memos to staffers, cited by The Information, show that Instagram will talk about its retreat from eCommerce by saying the Shop Tab is “just one of many ways” people can shop on Instagram.

“Commerce remains important for Instagram as we continue to make it easier for people to discover and shop products throughout the app from feed, stories, reels and innovations like live shopping and drops,” a spokesperson told PYMNTS.

PYMNTS’ Karen Webster said, “This does come as a surprise, and they really should shut it down. It was very clunky to use —  and buying directly from the brand off their platform was easier and better.

“Instagram shouldn’t retreat from commerce, the team should figure out a better business model and brand experience that doesn’t keep the user captive inside of a walled garden that can’t deliver.”

Among other changes being contemplated for Instagram include a possible paid option for the service, a PYMNTS report said.

Read more: Meta Exploring Paid Facebook, Instagram Features

Meta has formed a group to identify and build potential paid features for Instagram, Facebook and WhatsApp, per an internal memo to employees from last week. The group is called “New Monetization Experiences.”

But John Hegeman, Meta’s vice president of monetization, said the company was still looking into expanding its ad business — it didn’t plan on letting people pay to shut off ads in the apps.

“I think we do see opportunities to build new types of products, features and experiences that people would be willing to pay for and be excited to pay for,” he said. But he didn’t elaborate on what specific paid features were being considered.