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How Facebook Marketplace Amassed More Shoppers Than Amazon

#E-commerce
2025-03-18 12:009 min read

Content Introduction

The video discusses the declining engagement of younger users on Facebook while noting the platform’s significant global reach. Recent statistics reveal that only 32% of U.S. teens use Facebook, a stark drop from 71% in 2014. Despite this decline, Facebook Marketplace has emerged as a key feature retaining user engagement, boasting over 1.1 billion users in 70 countries. The Marketplace’s appeal lies in its cost-effectiveness—no listing fees and the option for local transactions, making it attractive for budget-conscious consumers. As younger generations prioritize sustainability and affordability, Marketplace aligns with these values by providing a platform for secondhand goods. The video also explores the partnership between Facebook Marketplace and eBay, enhancing inventory and addressing trust issues in transactions. The narrative concludes by underscoring the importance of Marketplace in Facebook's strategy to retain users and drive engagement amid competition from other platforms.

Key Information

  • Facebook has a massive global reach but is losing grip on younger users, with only 32% of U.S. teens using the platform today compared to 71% in 2014.
  • Despite the decline, Facebook Marketplace is a significant feature that keeps users engaged, becoming one of the biggest success stories of Facebook with 1.1 billion users in 70 countries.
  • Facebook Marketplace rivals eBay and Craigslist, being referred to as the 'garage sale of the internet', primarily attracting older generations, including Baby Boomers and Gen X.
  • The platform is popular due to its cost-saving advantages, as it does not charge listing fees and allows local pickups, avoiding shipping and transaction costs.
  • Facebook Marketplace plays a crucial role in Meta's strategy to attract users and retain engagement while offering a way to generate valuable consumer data for targeted advertising.
  • Facebook's ad revenue is primarily derived from the main feed, with Marketplace contributing indirectly to user retention and engagement, despite it being less monetized.

Timeline Analysis

Content Keywords

Facebook Marketplace

Facebook Marketplace, launched in 2016, has become one of the largest platforms for secondhand sales, with 1.1 billion users in 70 countries. Despite Facebook's declining popularity among younger users, Marketplace sees heavy engagement among those who use it for specific purchases.

User Engagement

While Facebook's overall user engagement is decreasing, Marketplace provides a different kind of engagement driven by necessity. Users often visit Marketplace looking for specific items rather than for social networking.

Marketplace Features

Marketplace allows users to buy and sell large items without listing fees or shipping costs, enhancing its appeal as a cost-effective option for consumers compared to other platforms like eBay and Craigslist.

Demographic Trends

Only 32% of US teens currently use Facebook compared to 63% on TikTok and 61% on Instagram, indicating a significant shift in platform preference among young users while Marketplace continues to attract a diverse demographic for secondhand shopping.

Strategic Importance

The long-term strategy for Facebook involves maintaining Marketplace as a vital part of its e-commerce offering, as it helps retain users and drive ad revenue indirectly, presenting a mixed success story compared to other aspects of the platform.

Related questions&answers

What is the current percentage of U.S. teens who use Facebook?

Only 32% of U.S. teens use Facebook today, down from 71% in 2014.

What feature keeps users engaged on Facebook?

Facebook Marketplace is a feature that keeps users engaged on the platform.

Why do users prefer Facebook Marketplace?

Users prefer Facebook Marketplace because it doesn't charge listing fees and allows for local pickups, avoiding shipping fees.

How has Facebook Marketplace been described?

Facebook Marketplace has been referred to as the garage sale or flea market of the internet.

What is a significant factor affecting the popularity of Facebook Marketplace?

The lack of selling fees is a major selling point for Facebook Marketplace.

What kind of business model does Marketplace represent?

Marketplace represents a Consumer-to-Consumer (C2C) business model.

How does Marketplace impact Facebook's advertising revenue?

Marketplace helps retain users on Facebook longer, thus providing more opportunities to serve ads.

What type of items do younger users look for on Marketplace?

Younger consumers often seek affordable and sustainably sourced secondhand items on Marketplace.

What has been the growth trajectory of the resale market?

The global resale market is projected to hit $350 billion by 2027.

What did Facebook do to respond to the competitive landscape?

Facebook is expanding Marketplace's reach and enhancing its features to attract and retain users.

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