Google will turn stop selling its Nexus One handset on its online shop to use the site as an 'online store window' for a range of Android handsets.
This has led to a move away from this particular experiment to a more traditional system of partnerships with service providers.
"While the global adoption of the Android platform has exceeded our expectations, the web store has not," blogged head of mobile Andy Rubin last week.
"It's remained a niche channel for early adopters, but it's clear that many customers like a hands-on experience before buying a phone, and they also want a wide range of service plans to chose from."
After admitting defeat, Google will look to increase the availability of the Nexus One handset in shops and move from trying to sell its handset online to promoting slected Android phones.
"…we'll stop selling handsets via the web store, and will instead use it as an online store window to showcase a variety of Android phones available globally," explained Rubin.
"Innovation requires constant iteration. We believe that the changes we're announcing today will help get more phones to more people quicker, which is good for the entire Android ecosystem: users, partners and also Google."