Social commerce

Facebook and Instagram Shops for Australian Retailers in 2026

Meta moved Facebook and Instagram Shops to website checkout. How Shops, product tags and Shops ads work now and how Australian retailers make them sell.5 min read6 cited sourcesUpdated

Facebook and Instagram Shops still matter for Australian retailers, but they now work as a shop window rather than a till. Meta told sellers that from June 2025, Shops would gradually move to website checkout, so shoppers discover and browse products in the apps and then pay on the retailer's own site. With 17.7 million Facebook users and 15.2 million Instagram users in Australia, the reach is large; the work is in making the click-through convert.

What changed with Meta Shops

Meta launched Shops in 2020 and spent several years pushing in-app checkout, mainly in the US. According to Shopifreaks' history of the program, international merchants mostly kept using website checkout because native checkout was not available in most markets. In 2025 Meta reversed course for everyone, saying website checkout gives sellers more control and reduces the time needed to set up and maintain a shop. Meta expected most shops to be updated by the end of August 2025.

For Australian sellers the practical change is small, since most never had in-app checkout. The lesson is bigger: Meta is a discovery and advertising platform first. The sale happens on your store, so its speed, accuracy and trust signals decide the result.

What Shops still do

Meta's help centre lists the current benefits. Shops are required for Shops ads, which use machine learning to send each person to the destination Meta predicts is most likely to convert, either your website or your shop on Facebook or Instagram. Shops let you tag catalogue products in posts, and tagged content can appear in Instagram's Explore tab. Meta also notes that you do not need a shop to run ads with product tags or to boost tagged posts.

In practice, a well-run Shop gives you:

  • a browsable catalogue on your Facebook Page and Instagram profile
  • product tags on posts, Reels and Stories
  • collections for seasons or campaigns
  • access to Shops ads and catalogue-based dynamic ads

All of these depend on a clean product catalogue: accurate titles, prices, availability, variants and images.

Facebook versus Instagram for Australian shoppers

Both platforms are large, but they play different roles. We Are Social's Digital 2025 report found Facebook is the most widely used platform (78% of users), while Instagram is Australians' preferred social app (22%), ahead of Facebook (20%) and TikTok (14%).

Broadly, Facebook suits broad reach, community groups, local promotion and older audiences. Instagram suits visual categories such as fashion, beauty, homewares and gifts, where Reels and creator content drive discovery. Most retailers run both from one catalogue through Meta Commerce Manager.

Paid reach on Meta remains comparatively affordable for retail categories, although prices are rising (see social media ad costs in 2026). WordStream's 2025 benchmarks, based mostly on US advertisers, found the average Facebook traffic campaign cost per click was US$0.70, and Shopping, Collectibles and Gifts had the lowest CPC at US$0.34 and the highest click-through rate at 4.13%. Australian costs differ, so use these as orientation only.

Making Shops convert in 2026

  1. Keep the catalogue in sync. Out-of-stock products or stale prices in your Shop waste ad spend and frustrate shoppers. Sync availability and price automatically from your store or OMS.
  2. Make product pages fast and complete. Every tag now leads to your site. Mobile load speed, clear delivery costs and returns information matter more than the Shop itself.
  3. Use images built for the feed. Square and vertical formats, lifestyle shots and short videos fit social feeds better than a single white-background marketplace image. Test both and keep what your audience responds to.
  4. Post tagged content consistently. Product tags only work if you post. A steady calendar of tagged Reels, carousels and Stories keeps products in front of people.
  5. Measure beyond clicks. Use Meta's pixel and Conversions API, and compare platform-reported sales with your own order data. See how to measure social media ROI.

Key figures

How eComChannels helps

Shops only perform when the catalogue, creative and destination line up. AI social media outreach drafts product posts for Facebook and Instagram, along with TikTok, Pinterest, YouTube and other networks, from the same master product record. Your team approves them, so you can keep a steady posting rhythm without writing every caption.

AI graphics produces image sets sized and styled for each channel, so the same product looks right in an Instagram carousel and on a marketplace listing. Approve once and publish everywhere. And because Meta now sends shoppers to your website to pay, a branded storefront connected to your order management gives them a fast, SEO-ready page with live stock and pricing.

Book a demo or start a 30-day free trial to see how it works with your catalogue.

FAQ

Can customers still check out inside Instagram or Facebook?

Generally no. Meta began moving Shops to website checkout in June 2025, so customers browse in the app and are sent to your website to pay. Shops ads may send people to your site or your in-app shop, depending on what Meta predicts will convert.

Do I need a Facebook Shop to tag products on Instagram?

Not necessarily. Meta says you do not need a shop to create ads with product tags or to boost tagged posts, but you do need a shop to run Shops ads. A product catalogue in Commerce Manager is the common foundation.

What is the most important thing to get right?

The catalogue. Accurate prices, stock, variants and images in your Meta catalogue, kept in sync with your store, prevent wasted clicks and mismatched claims, and make every post and ad easier to run.

Sources

  1. Meta Phases Out Native Checkout For Facebook & Instagram Shops Value Added Resource, 2025
  2. Meta ditches onsite checkout on Facebook and Instagram Shopifreaks, 2025
  3. About Shops on Facebook and Instagram Meta Business Help Center, 2026
  4. Digital 2026: Australia DataReportal, 2026
  5. Digital 2025 Australia: Social media rivals search for brand discovery We Are Social, 2025
  6. Facebook Ads Benchmarks 2025 WordStream by LocaliQ, 2025

Figures are from the third-party studies listed and were checked against the source when this guide was written. They are not eComChannels customer results.

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