Facebook Marketplace has become one of the world’s largest resale platforms, challenging  Amazon, eBay, and Craigslist, according to CNBC. Launched in 2016, Facebook Marketplace is a platform where users can browse, buy, and sell second-hand goods. The platform was first introduced as a simple add-on for buying and selling used goods. 

Meta’s Q4 2024 report showed that Facebook contributed massively to Meta’s user base across its platforms. Still, there’s a growing decline in Facebook use among young users. Data by Pew Research Center shows that only 32% of teens use Facebook, compared to 63% and 61% on TikTok and Instagram, respectively. This is down from 71% in 2014. 

But Facebook Marketplace continues to grow in popularity. Last year, Fortune reported that Marketplace was seeing 4 times the number of Amazon customers. It has “become one of Meta’s success stories” with over 1.1 billion users across 70 countries. This figure is up from  800 million Marketplace MAUs in 2018. 

What’s driving this success? According to CNBC, Marketplace offers something other resale platforms don’t: free listings, local pickup, and social integration. It’s also budget-friendly and a convenient option at a time when more people are looking for ways to save money.

Why Facebook Marketplace is winning against Amazon and eBay

Marketplace’s biggest advantage over competitors is its low-cost structure. E-commerce platforms like Amazon and eBay charge listing fees and commissions, but Facebook Marketplace allows sellers to list items for free. Sellers only pay a 10% fee if they use shipping, but many opt for local pickups to avoid this cost entirely.

For many users, the ability to sell items locally without shipping costs or auction management makes Marketplace a more attractive option. This is a huge advantage over eBay, where sellers must manage auctions and shipping costs.

Budget-conscious shopping has always been a factor in secondhand sales. With rising costs, many consumers are looking for ways to save money. A user told CNBC that shopping on Marketplace has helped them cut costs on everyday items. Buyers have found the platform to be a reliable place for secondhand goods at lower-than-retail prices.

Amazon, while dominant in retail, is not built for peer-to-peer resale. Its marketplace serves businesses and third-party sellers, not individuals selling used goods. Marketplace facilitates direct, in-person sales, allowing buyers to inspect items before purchase and sellers to avoid shipping challenges. 

The platform also benefits from Facebook’s existing social network. Unlike Craigslist, which lacks user profiles and verification, Marketplace integrates with Facebook accounts. Buyers can check a seller’s profile, mutual friends, and reviews before making a purchase, increasing trust in transactions.

Meta benefits from Marketplace, but monetization remains a challenge

Marketplace is one of Facebook’s most-used features, but it remains one of the least monetized areas of the platform. Unlike Facebook’s ad-supported News Feed, Marketplace does not directly generate significant revenue.

However, CNBC reports that Marketplace indirectly benefits Meta by keeping users on the platform longer, increasing ad exposure. Since ads drive 97% of Meta’s revenue, keeping users engaged on Facebook where they’re served more ads is a key priority.

But Meta has not shared specific plans for monetizing Marketplace. The challenge for Meta is figuring out how to turn Marketplace into a direct revenue stream. Currently, ads in Marketplace are bought separately from Facebook’s ad network.

However, it appears to be expanding its reach. In January, the company partnered with eBay, allowing eBay’s listings to appear on Marketplace in select countries like the U.S., France, and Germany. Users can now browse eBay listings directly in Marketplace but must complete their purchases on eBay’s platform.

With the global resale market projected to hit $350 billion by 2027, platforms like Marketplace are becoming more important in shaping online shopping behaviors. Whether Meta will integrate Marketplace into its ad business is unknown, but its continued growth suggests that resale commerce will play a significant role in the digital economy.

‍