The live commerce boom that transformed retail in China appears to be facing unexpected headwinds in Western markets. Following Facebook's quiet exit from live shopping, Instagram has announced it will disable product links in live streams next month—marking Meta's complete withdrawal from live commerce development across its social platforms. This retreat comes as competitors including Amazon, Google, and TikTok continue exploring live shopping in North America, raising questions about the model's viability in Western markets.
Meta's "Year of Efficiency" Claims Another Casualty
The move represents another strategic shift under Meta's "Year of Efficiency" initiative following its 11,000-employee layoff. Similar to Facebook's August 2022 exit from live shopping, Instagram's decision reflects persistently disappointing user engagement and conversion rates in North America's live commerce market. Despite maintaining some e-commerce presence through Facebook Marketplace, Meta has systematically dismantled shopping features on Instagram—even removing the dedicated "Shop" tab from the navigation bar in favor of Reels short videos.
Instagram head Adam Mosseri acknowledged the platform is recalibrating its focus toward core photo-sharing features while balancing video content, responding to user dissatisfaction and competition from decentralized alternatives like Pixelfed.
Why the West Hasn't Found Its Live Commerce Superstars
Live commerce's explosive growth in China and Southeast Asia—where the market is projected to exceed $680 billion in 2023—contrasts sharply with its lukewarm Western adoption. While conceptually similar to American home shopping networks, the "watch-and-buy" format has failed to gain traction with U.S. consumers. Even with influencer participation, live streams often prioritize entertainment over sales conversion.
Industry analysts estimate the 2023 U.S. live shopping market at $25 billion—just 3% of China's projected volume. Despite high-profile experiments like YouTube's celebrity-hosted shopping streams and Amazon's 24-hour live channel, 78% of American consumers report never having watched a live shopping broadcast. In contrast, over 70% of Chinese consumers regularly make purchases through live commerce platforms.
Niche platforms like collectibles marketplace Whatnot—recently valued at $3.7 billion—demonstrate pockets of success in specialized verticals. Other emerging players including Popshop (collectibles), NTWRK (streetwear culture), and Loupe (sports cards) have attracted significant investment despite broader market challenges. Infrastructure providers like TalkShopLive have also found success powering live commerce for retailers including Walmart.
Meta's Failed E-Commerce Gambit
Meta's e-commerce ambitions date to 2018 when Facebook launched primitive live shopping features for Marketplace sellers. Subsequent acquisitions and the 2020 launch of Facebook Shops suggested growing commitment—indeed, 57.8% of global social commerce shoppers reported purchasing through Facebook in eMarketer's survey.
Yet Meta's abrupt retreat underscores deeper strategic struggles. With its metaverse vision faltering and core business under pressure, the company appears unwilling to sustain long-term bets on unproven models. As competitors continue experimenting with live commerce formats better suited to Western consumers, Meta's withdrawal may prompt broader reevaluation of how—or whether—the Asian live commerce phenomenon can translate across cultures.