Facebook Marketplace has 4 times more customers than Amazon

This is surprising to some; for others, not so much. Facebook Marketplace is now a true competitor to eBay, Amazon, Craigslist, and other online marketplaces and e-commerce sites. This has been going on for some time.

According to Fortune, in 2017, Marketplace had more than 15 times more monthly active users (MAU) than Craigslist — 800 million compared to 55 million. According to a report by Capital One Shopping, that number has risen to 1.2 billion today. On the other hand, e-commerce giant Amazon had 310 million monthly users in 2023, and eBay had 132 million active buyers worldwide. When it comes to active users, Zuckerberg’s Marketplace undoubtedly outshines them as it has seen rapid growth and now has a massive reach.

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History

Launched in 2016, it has become a key player in the online marketplace industry by offering a user-friendly platform integrated with the widely used Facebook application. This integration ensured convenience and accessibility from the very beginning, making it easier for users to buy and sell items on the social network. Marketplace has also benefited greatly from Facebook’s advanced algorithm and data analytics, which has resulted in more targeted ads and personalized user experiences.

But perhaps the most important advantage is that it is associated with a huge brand: Facebook. Although this name has caused a lot of controversy over the years, it still inspires trust in the eyes of many people.

What started as a simple way for neighbors to sell unwanted items has grown into an e-commerce giant in recent years. But is there any money in it for its parent company, Meta?

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Income?

Meta generates revenue from Facebook Marketplace primarily from advertising and transaction fees. Since 2018, companies and individual sellers have been paying to promote their offers, increasing visibility and reach among potential buyers. These ads appear in the Marketplace interface like regular Facebook ads and can be targeted using Facebook’s advanced advertising algorithms.

Meta also charges fees on certain types of transactions. For example, if you sell through the Marketplace shipping option, Meta charges 10% or $0.80 per listing for items sold.

There is no exact figure yet on how much revenue this generates for Meta. However, we do know that Meta’s 2023 ad revenue was $134.9 billion, with net income of $39 billion. Even if the company doesn’t make billions of dollars from the site, it provides a lot of valuable data for targeted advertising and keeps users coming back to the Facebook site.

Fraud

Facebook Marketplace scams are an unfortunate reality that buyers and sellers need to be wary of, from fake offers and payment scams to phishing and non-delivery scams.

As the BBB reported in 2022, some scams involve nonexistent high-priced items such as electronics, iPhones, and even cars and RVs, where the alleged seller asks the buyer to first wire money or transfer funds via Zelle, CashApp, Venmo or similar tool. Work. The seller and third party service is a scam and the item does not exist. The buyer sends the entire amount, uses part of it as a deposit or enters bank details on a fake website.

If you have ever tried to sell something on this or any other platform, you know exactly how many scammers of all kinds there are.

Despite challenges such as fraud, Facebook Marketplace continues to thrive, providing Meta with significant revenue opportunities and valuable user data, strengthening its position as a major player in the e-commerce market.

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This article Zuckerberg’s Quiet Retail Takeover: Facebook’s Marketplace Has 4x More Customers Than Amazon originally appeared on Benzinga.com