Two years ago, Meta aggressively pushed American stores on Instagram and Facebook to adopt its in-app checkout system, aiming to revolutionize social commerce.
Now, the experiment has been rolled back, with the company reverting to its original approach. Starting soon, in-app payments will be gradually disabled, and Shop-enabled accounts will once again be able to direct customers to their own websites for purchases.
This reversal highlights the shortcomings of Meta’s ambitious plan to dominate e-commerce within its platforms.
The in-app checkout, intended to streamline shopping without users leaving Instagram or Facebook, faced hurdles including resistance from brands over revenue-sharing terms and operational challenges like sales tax management. With advertising already driving 97% of its revenue, Meta seems to have prioritized its core strength — ad sales — over building a competing e-commerce ecosystem.
The pivot suggests that social commerce didn’t deliver the expected returns, prompting Meta to refocus on its lucrative advertising business. Moving forward, Shops will likely serve as a discovery tool, funneling traffic to external merchant sites rather than handling transactions.
This shift reflects the difficulties of integrating a full-scale shopping experience into social media and underscores Meta’s decision to lean into what works best: connecting brands with audiences through ads.
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As of 08:56 PM CEST on Saturday, June 07, 2025, this strategic retreat marks a clear acknowledgment that Meta’s future lies in enhancing its advertising platform rather than challenging e-commerce giants.
