Facebook Marketplace continues to attract younger users, even as overall engagement with the platform declines. According to a recent Pew Research study from 2024, only 32% of U.S. teenagers currently use Facebook, a significant drop from 71% in 2014. Yet, the Marketplace feature remains a vital draw, bridging the gap between necessity and convenience for this demographic.
Marketplace: A Growing Success for Meta
Launched in 2016, Facebook Marketplace has quickly emerged as one of Meta’s notable achievements, boasting over 1.1 billion users across 70 countries. This service rivals established platforms like eBay and Craigslist, providing a user-friendly online marketplace for buying and selling goods.
Users Prefer Cost-Effective Trade
Many individuals use Facebook primarily for Marketplace. Mirka Arevalo, a student at Buffalo University, emphasized, “I only use Facebook for Marketplace. I go in knowing what I want, not just casually browsing.” Marketplace’s structure, which avoids listing fees and emphasizes local pickups, enhances its appeal.
- Marketplace does not charge listing fees.
- Local pickups reduce shipping costs, making transactions more affordable.
According to Jasmine Enberg, VP and Principal Analyst at eMarketer, the absence of fees is a significant draw. “Sellers love that Marketplace has no fees,” she said, noting that introducing fees could drive users to competitive platforms.
Capitalizing on the Resale Trend
Increased consumer interest in affordable and sustainable options has propelled the resale market, projected to reach $350 billion by 2027. Yoo-Kyoung Seock, a professor at the University of Georgia, remarked that Marketplace meets younger buyers’ expectations for both cost-effectiveness and environmental responsibility.
Trust also plays a critical role in Marketplace’s success. Users can rely on their Facebook profiles, minimizing the anonymity that potentially fosters fraud on sites like Craigslist.
Strategic Partnerships Enhancing Marketplace
A recent collaboration between eBay and Facebook Marketplace aims to incorporate some eBay listings into Marketplace in the U.S., Germany, and France, potentially generating an additional $1.6 billion in sales for eBay by 2025, according to Wells Fargo. Enberg notes, “This partnership boosts the number of buyers and sellers, helping to solve some of Marketplace’s trust issues.”
Despite the lack of listing fees, Facebook does retain a 10% commission on sales made through its shipping service. While Marketplace isn’t a major revenue generator, it plays a crucial role in user engagement.
Marketplace’s Role in Facebook’s Strategy
“It’s one of the least monetized parts of Facebook,” Enberg explained. “But it fosters engagement, which advertisers appreciate.” As Meta relies on advertisements for over 97% of its revenue, retaining users is imperative, especially in a rapidly changing digital landscape.
“Marketplace helps Meta demonstrate that younger users still log in,” she continued. “Even if they’re focused on buying and selling instead of traditional browsing.”
By maintaining high user engagement, Marketplace is essential for Facebook’s ongoing relevance, ensuring that it can adapt to evolving user preferences and market demands.
