The company’s employees were notified of the change in direction and told that the platform’s existing shopping page would eventually disappear, tech publication The Information reported, citing an internal company memo.
The company still has visions of becoming the go-to destination for users to find and purchase products, it said.
“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 for parent company Meta told Insider.
Instagram’s move also comes on the heels of Meta reporting its first revenue decline in history in July.
Meta’s revenue drop followed a decline in the digital advertising market also faced by rivals like Google’s parent company Alphabet and Snap.
Instagram has also been facing stiff competition with rival app TikTok.
Tackling some of these challenges, Meta announced last week that it was testing a number of paid features across its platforms, including Instagram, in line with announcements made by Mark Zuckerberg in June.
“Rolling out more ways for creators to make money on Facebook and Instagram – and sharing updates that will help creators build for the metaverse,” Mr Zuckerberg had said.
“We’re heading towards a future where more people can do creative work they enjoy, and I want platforms like ours to play a role in making that happen,” he shared on Facebook.
While it is putting a number of its e-commerce features on the back burner – including Meta’s investment in “creator commerce” within Instagram shopping and its “Friends & Family Shopping” section – the app’s shopping tab will still provide a platform for people to find new brands personalised for them.
Over the next few months, the company says it plans to test a simpler and less personalised version of the shopping page called internally as “Tab Lite”, The Information reported.