Facebook’s influence among younger audiences has been shrinking, yet its Marketplace platform continues to draw significant engagement. While social media habits have evolved, with many teenagers favoring platforms like TikTok and Instagram, Marketplace has maintained its relevance. The platform’s ability to facilitate consumer-to-consumer transactions offers convenience that appeals to a broad demographic, including younger users who primarily use Facebook for buying and selling items rather than social networking. Additionally, recent partnerships and integrations have further strengthened its appeal in the online resale market.
A decade ago, Facebook was the dominant social media platform among American teenagers, with 71% reporting usage. Today, that number has dropped to 32%, reflecting a shift towards newer digital platforms. However, Facebook Marketplace remains a widely used feature, boasting 1.1 billion users across 70 countries. Competing with Craigslist and eBay, the platform serves as a digital flea market where users can buy and sell goods with ease.
Why Do Younger Users Still Use Facebook Marketplace?
Unlike traditional social media interactions, Marketplace provides a utility-driven experience that resonates with younger consumers looking for deals on secondhand items. Many users access Facebook solely for this purpose, bypassing news feeds and other features.
“I only use Facebook for Marketplace,” said Mirka Arevalo, a student at Buffalo University. “I go in knowing what I want, not just casually browsing.”
How Is Facebook Marketplace Expanding Its Reach?
To strengthen its position, Facebook Marketplace has introduced partnerships aimed at increasing transaction volumes. A collaboration with eBay now allows certain eBay listings to appear on Marketplace in the U.S., Germany, and France. Analysts estimate that this could add $1.6 billion in sales for eBay by year-end.
“This partnership boosts the number of buyers and sellers,” said Jasmine Enberg, VP and principal analyst at eMarketer. “It could also solve some of Marketplace’s trust issues.”
Despite its widespread use, Marketplace is not a significant direct revenue generator for Meta (NASDAQ:META). Instead, its value lies in keeping users engaged on the platform, which ultimately benefits Facebook’s broader advertising business.
“It’s one of the least monetized parts of Facebook,” Enberg stated. “But it brings in engagement, which advertisers value.”
Facebook Marketplace’s role in Meta’s ecosystem reflects a shift in digital consumer behavior. While the main platform faces declining youth engagement, its Marketplace feature continues to attract users looking for convenient online transactions. The integration with eBay could further enhance its utility, addressing trust concerns while driving additional engagement. For younger consumers, the practicality of Marketplace outweighs the social aspects of Facebook, illustrating how digital platforms can evolve to sustain relevance even as usage patterns change.
