In an era where social media platforms are vying for the attention of younger users, Facebook’s Marketplace has emerged as a surprising draw for the younger demographic. Despite a general decline in Facebook usage among teens, this digital flea market is becoming a key reason for many to maintain their presence on the platform.
“I only use Facebook for Marketplace” is a growing trend among young users who see Facebook not as a social network, but as a utility for buying and selling goods. Launched in 2016, Marketplace has grown into one of Meta’s (NASDAQ: META) biggest success stories. With 1.1 billion users across 70 countries, it now competes with established players like eBay and Craigslist. Charles Lindsay, an associate professor of marketing at the University of Buffalo, describes it as “the flea market of the internet,” highlighting the massive amount of consumer-to-consumer business taking place on the platform.
One of Marketplace’s key advantages is its cost-effectiveness. Unlike eBay or Etsy, it doesn’t charge listing fees, and local pickups help avoid shipping costs. This zero-fee model has been a significant draw for sellers. Jasmine Enberg, VP and Principal Analyst at eMarketer, notes, “Sellers love that Marketplace has no fees. Introducing fees could push users elsewhere.”
The platform also taps into the booming resale market, projected to hit $350 billion by 2027. Yoo-Kyoung Seock, a professor at the University of Georgia’s College of Family and Consumer Sciences, points out that “Younger buyers are drawn to affordability and sustainability. Marketplace offers both.”
Trust is another factor working in Marketplace’s favor. Users’ Facebook profiles make transactions feel safer compared to anonymous platforms like Craigslist. This trust factor has been further bolstered by a recent partnership with eBay, allowing select eBay listings to appear on Marketplace in the U.S., Germany, and France. Analysts project this collaboration will drive an additional $1.6 billion in sales for eBay by the end of 2025.
While Marketplace isn’t a major direct revenue source for Meta, it plays a crucial role in keeping users engaged. Meta relies heavily on ad revenue, which accounted for over 97% of its $164.5 billion revenue in 2024. By keeping users on the platform, even if they’re primarily there to buy and sell, Marketplace contributes to Facebook’s overall engagement metrics – a key factor for attracting advertisers.
“Marketplace helps Meta prove younger users still log in,” Enberg explains. “Even if they’re buying and selling instead of scrolling.” This engagement is vital for Facebook as it seeks to remain relevant in a rapidly evolving digital landscape.
The success of Marketplace underscores a shift in how younger users interact with social media platforms. While they may not be using Facebook for its original purpose of social networking, they’re finding value in its marketplace functionality. This adaptation demonstrates Facebook’s ability to evolve and maintain its relevance, even as user behaviors change.
As the digital marketplace continues to grow and evolve, Facebook’s Marketplace positioned to play a significant role in shaping the future of online commerce, particularly among younger consumers. By providing a platform that combines trust, affordability, and ease of use, Facebook has found a way to keep young users engaged, ensuring its continued relevance in the social media landscape.
