Facebook’s New Marketplace: Online Buying and Selling Sans Guns, Marijuana, and Pharmaceuticals

The news of Facebook’s evolution into an all-encompassing e-commerce platform similar to eBay has been met with mixed reactions. Some greeted it with arms wide open, others, including myself, view it as a long overdue addition- but as the popular adage goes, better late than never.

In a post shared yesterday, Facebook announced the launch of its Marketplace- a platform that is positioned to tap into its 1.71 billion user base by enabling users to upload items for sale. It also simplifies the process of discovering items for purchase in their locality. As of now, this feature can be found at the bottom of the Facebook app interface for both iOS and Android. It will initially be available in the US, UK, Australia, and New Zealand. Field-testing is currently underway in Chile, with the promise to extend the service to other locations in the near future.

In light of this, established services such as eBay and Craigslist have a formidable competitor to reckon with. In hindsight, it’s fair to say many saw it coming.

This feature isn’t novel to Facebook. Prior to this official declaration, over 450 million users have been engaging in buy and sell groups on the site. Given the proven popularity of such a service, Facebook has strategized to make it available to all its users.

Modeled after eBay, the Marketplace presents only items posted by users in your vicinity, thereby facilitating transactions. You can personally validate an item before making a payment should you question the credibility of its source. You also have the option to browse through various categories, such as Household, Electronics, and Apparel, and adjust your regional focus, or even switch to a different city altogether.

However, certain categories of items are likely to be off-limits. Guns, marijuana, and other related illegitimate drugs, and potentially even lawful pharmaceuticals, are expected to be excluded from the purchasable items. Facebook, like several other sites, prohibits pornographic and extremist content. Given the challenge of accurately identifying all potential violators, Facebook is depending on you, the user, to report items that contradict community standards.

Facebook initially hinted at this feature back in 2007, yet failed to follow through on their plans. Fast forward seven years, Facebook permitted ‘For Sales Groups’ which now boasts of over 450 million users, thus making it a primary motivation to generalize the feature for all users.

To use the Marketplace as a seller, it is as simple as uploading a photo of your item, detailing its name, description, and price, confirming your location and selecting a category, then clicking ‘Post’. Similarly, to use it as a buyer, just check for the marketplace icon at the bottom of your screen to view all available items.

Disruptive Service

Facebook’s Marketplace has the potential to disrupt veteran platforms such as eBay and Craigslist. It provides an easy medium to sell to your established networks. After all, it’s easier to trust a business someone you know has been following for years, recognizing their industry reputation. This familiarity could steer many to favor Facebook Marketplace. Furthermore, participating in business on a platform like Facebook, with its vast pool of users, offers a higher likelihood of business success than a platform with a smaller audience. However, other platforms’ years of experience and clientele loyalty may make transitioning to use Facebook Marketplace a slow process.

In a bid to compete with services like Salesforce Chatter, Facebook may also launch its ‘Facebook @ Work’ service soon. While the revenues of the social media behemoth have been robust over the years, these kind of services could potentially boost it further. For instance, sellers could be offered the chance to promote their offerings in the bustling marketplace for a fee. Although not explicitly declared, options like commission-based motivation could also be a part of the future game plan. For those awaiting this service outside of the US, UK, Australia, and New Zealand, patience will have to be a virtue.