Can The Facebook Marketplace Evolve Beyond a Verified Craigslist?

There have been many attempts to create a trusted local marketplace over the years. Many have failed. Craigslist and eBay were founded in the same year -- 1995 -- and have largely stayed true to their original missions, with some significant turns and deviations.

Amazon was founded in 1994.

First, Amazon tried to be eBay. Then, eBay tried to be Amazon.

Both failed. Both are back to what they do best. Amazon for convenience-oriented buyers who demand the trifecta of selection, speed, and price. eBay for the treasure hunt.

Craigslist was been true to what it is from the beginning with remarkably few deviations due to its founder, Craig Newmark and their ability to eschew outside investors/forces.

Facebook Marketplace was introduced in 2016 and there have been many attempts to have Shops and Marketplace on Facebook itself. (we will leave Insta out of this discussion). Facebook Shops have mostly not worked.

A new BI article has made me rethink about Facebook Marketplace. Facebook Marketplace has steadily grown, particularly among a younger generation. People trading down. You can get cheap or free things, similar to Craigslist, but it's slightly more trusted and slightly less cringe, even if the same audience wouldn't be caught dead posting updates to their friends on Facebook itself.

Craigslist is even less than what eBay used to be at its founding - no payment or anything. Seller and buyer contact each other and good luck except for ratings.

Facebook as a marketplace provides payment and shipping services (through Paypal and other means).

At this point, Facebook Marketplace is a way to get free things, or used things for cheap in a way you can verify if the owner might have treated the product like you -- because they are not anonymous. (You have to do some social sleuthing, but who doesn't do that these days).

Like any marketplace, it does provide Facebook with ad revenue, although the likelihood that the participants will advertise [let's put real estate to the side] is somewhat relatively low (compared to Amazon) unless it's a much higher value item.

Facebook has never been terribly committed to eCommerce in the big blue app itself and Shops. However internationally, WhatsApp is a force for business transactions. In the US, Facebook Marketplace continues to grow and is both trusted and not trusted.

Facebook and Craigslist are ultimately (still) closer to garage sales than marketplaces like Etsy. eBay is slightly up-market of both with more businesses participating, and Amazon taking the high-ground for more businesses.

In business, you can either be what you are or you can evolve who you are. You can't try to be something you're not -- it just won't resonate with your core audience. Between WhatsApp and Facebook Marketplace, Meta does have a winning formula, even if Facebook Marketplace is not as "Wall Street scalable" as they might like it to be.