Initially launched in 2007, Facebook Marketplace was relaunched in October 2016. The second-hand peer-to-peer market is yet another industry Facebook is trying to enter. It is directly competing with existing online retailers such as Craigslist and eBay. Facebook Marketplace has a couple pros and cons relative to the current competitors.
Where does Marketplace have the upper hand?
The main advantage that comes from shopping on Facebook Marketplace is increased trust. When you find an item you like on Facebook Marketplace, you can see the profile of the person who posted it. While someone can always create a false profile, it takes a lot more effort than simply adding an email to a nameless Craigslist page. Moreover, it takes significantly more effort to create an authentic-looking profile in a short period of time. There is also the added benefit that if you look for sellers in your area, you might end up having mutual friends, which can further increase trustworthiness.
Another opportunity for Facebook Marketplace is that it can easily incorporate a payment system. As mentioned in a previous post, users can now send money to friends over Messenger. While Facebook has yet to incorporate that into Marketplace, it clearly has the technological capabilities to do so. Also, if someone wanted to pay using their credit card, they can become friends with the seller on Facebook and do it through Messenger. This adds another layer of security as both the buyer and the seller will be able to see if the profile is authentic before they do business. If it’s not or if the buyer refuses to add you, you can always cancel the deal and take your money somewhere else.
Of course, even with this added trust, scammers are out there. Various sites offer tips on how to avoid scams, which can be very helpful. Beyond that though, Facebook has attempted to leverage its network effects by adding a “Report item” and “Report seller” buttons at the bottom of each listing. This will hopefully add a couple barriers to scam postings and illegal products.
Is Marketplace successful?
According to Facebook? Yes it is. In May, 18 million items were posted to the Marketplace. But what does that matter if no one is willing to buy them. Some users have complained that it’s just like a garage sale. Everyone is just posting their trash online and giving the items an arbitrary price.
In the end though, garage sales are just that: offering your trash to the public. What’s that famous proverb? Somebody’s trash is someone else’s treasure. On a free-for-all page, questionable things will appear (see below for a couple examples). Question is, will there be enough diamonds in the rough to convince people to search through the garbage? The answer to that question will come in time. If Marketplace does succeed, this will be yet another reason to continue to use Facebook and thus yet another way for Facebook to increase its user base.
In the meantime, have you ever gotten anything off Facebook Marketplace? If so, what did you consider before making the purchase?