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Meta is exiting the livestream shopping business on Instagram starting from March 16, 2023.
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Livestream shopping has been popular and profitable in Asian markets, but the U.S. market has struggled to make it successful.
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Live shopping was adopted by U.S. businesses during the pandemic, but analysts found that U.S. consumers had not embraced it.
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Social commerce, including livestream shopping, only made up around 5% of total e-commerce sales in the U.S. last year.
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TikTok scaled back its live commerce plans in the U.S. and Europe as many livestream tests produced zero sales.
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Western markets' different cultures and digital habits have made it difficult to replicate China's live commerce success.
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Meta is still invested in shopping, as 90% of users follow at least one business on the site.
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Pundits had initially called live shopping the "future of e-commerce."
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Live shopping was seen as a way for U.S. businesses to boost their own online retail revenues during the pandemic.
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Livestream shopping had been available to U.S. businesses and creators on Instagram since 2020, but this capability will no longer be available starting March 16, 2023.