Instagram Shifting Focus From Ecommerce to Short Video Reels
Instagram is planning a user experience (UX) change sometime in February that will de-emphasize direct ecommerce on the app.
- Do you need a business bank account for your online business? Have a look at our review of the five best bank accounts for sellers, some of which are free with no minimum balance or deposits.
- AI can change your entire social media game today. Learn how you can save time writing engaging content faster. [sponsored]
- How to lower your taxable income and pay less in taxes. [sponsored]
- ‘My Community Made’ is a new marketplace to compete with Etsy and Amazon Handmade.
- EXCLUSIVE: Interview with Chris Prill, VP eBay Motors, discussing the new Guaranteed Fit program.
In a blog post, the Meta (Facebook) owned social media giant said it will change the app’s “navigation to make it easier for people to share and connect with their friends and interests.”
Instagram will adjust the navigation bar at the bottom of the app by removing the Shop tab, moving the Reels tab to the right, and adding a new shortcut for creating content in the center. (See the yellow boxes at the bottom of this mockup graphic)
The company added the Shop tab in 2020 to expand Instagram into having a marketplace-like social commerce shopping experience.
Shopping through Instagram will still be possible, and users can continue to set up and run shops on the social media platform.
But this UX shift confirms reporting by The Information from last year that the company was drastically scaling back its shopping features to focus on driving advertising revenue from ecommerce on its platform.
An internal memo to staffers supposedly said that Instagram’s existing Shop page would eventually disappear, “given shifts in company priorities.”
These priorities appear to focus on boosting its short video platform Reels, which according to one study shows a 35% higher engagement rate than other content types.
Instagram to Become ‘Safer’ Alternative to TikTok?
Investing in Reels also helps Instagram to better compete with TikTok, which may encourage more advertising on its platform from businesses that are hesitant about using or advertising on TikTok.
TikTok’s rise in the U.S. has been controversial due to its Chinese-based ownership, and last month Washington lawmakers banned the app from all federal employee’s government-owned devices.
The app has now also been banned on government devices in more than 20 states, and the FBI warned in December about national security concerns claiming using TikTok may be a risk as it could collect user data for espionage purposes.
This negative attention may not phase younger users which are more prevalent on TikTok. But it may give a pause to online businesses considering the engagement-rich short video format to advertise their products or services on the Chinese-owned platform.
But while Meta and Instagram are not immune to controversy, as American-based companies, they enjoy a much higher level of trust.
And this is where Instagram’s focus on expanding its Reels short video content could bring more ecommerce advertisers to the platform.
The company so much admitted to this strategy in its announcement by saying, “we continue to invest in shopping experiences that provide the most value for people and businesses across feed, stories, reels, ads and more.”
Connect with us: Head over to our Facebook Group for Small Business Sellers and interact with other small business owners.
Follow us on Facebook, Twitter, or LinkedIn to stay up to date with relevant news and business insights for your online business.
Subscribe to Our Newsletter
Business Insights for Your Online Business Presented with a Dash of Humor
We do not share your information and you can unsubscribe anytime.
Richard is co-founder of eSeller365. He has over 17 years of experience on eBay which includes tens of thousands of sales to buyers in over 100 countries and even has experience with eBay’s VeRO program enforcing intellectual property rights for a former employer. And for about two years Richard sold products on Amazon using Amazon FBA in the US.
To “relax” from the daily business grind, for a few weekends a year, he also works for IMSA as a professional race official.