Meta’s Facebook has long held a powerful grip on global social networking, yet recent trends reveal a worrying decline in engagement among younger audiences. A startling statistic from a 2024 Pew Research study highlights that only 32% of American teenagers are currently using Facebook, a drastic fall from 71% in 2014. This decline indicates that the platform struggles to resonate with the youth as it once did, raising questions about its future in the social media landscape.
While Facebook may be faltering in capturing the casual browsing attention of Gen Z, there’s a fascinating trend within its Marketplace feature that appears to be holding their interest. Young individuals, like Buffalo University student Mirka Arevalo, find value in using Facebook solely for transactional purposes. “I only use Facebook for Marketplace,” she stated with conviction, pointing out the platform’s utility over its traditional social aspects. This dichotomy underscores a shift in how newer generations interact with digital platforms—tailoring their usage to meet specific, immediate needs rather than engaging in mindless scrolling.
The Rise of Marketplace: A Digital Flea Market
Since its launch in 2016, Facebook Marketplace has emerged as one of the crown jewels of Meta’s portfolio, quickly amassing 1.1 billion users across 70 different countries. As a digital marketplace, it faces fierce competition from long-standing players like eBay and Craigslist, which raise the stakes significantly. However, as marketing professor Charles Lindsay aptly describes it, “Marketplace is the flea market of the internet,” emphasizing its innovative position in driving consumer-to-consumer commerce.
One of the key factors contributing to Marketplace’s success lies in its cost-effectiveness. Unlike eBay or Etsy, which impose listing fees, Facebook makes this transaction process accessible while enabling local pickups to avoid shipping costs altogether. Jasmine Enberg, a noted analyst at eMarketer, noted that sellers appreciate the absence of fees, which keeps them returning. The potential for Facebook to introduce fees in the future could disrupt this delicate balance, potentially driving sellers towards rival platforms.
Capitalizing on the Resale Trend
Simultaneously, Facebook Marketplace capitalizes on the booming resale industry, which is projected to reach an astounding $350 billion by 2027. Research indicates that younger consumers increasingly favor affordability and sustainability in their buying habits, and Marketplace uniquely aligns with these values. This draw towards pre-owned goods taps into a heightened awareness of environmental impact, making Facebook a more appealing option for today’s conscientious buyers.
Trust is another critical aspect that Facebook Marketplace has over its competitors. Unlike the anonymity of Craigslist, Facebook profiles lend a sense of reliability and safety. As Yoo-Kyoung Seock, a professor from the College of Family and Consumer Sciences, pointed out, the familiarity of Facebook profiles transforms Marketplace into a more credible environment for transactions. With a user’s identity tied to their Facebook account, there’s a psychological reassurance for both buyers and sellers that is often missing in typical online marketplaces.
Strategic Partnerships and Future Implications
A recent partnership between eBay and Facebook Marketplace could further bolster this trend. Set to allow select eBay listings to appear on the Marketplace across the U.S., Germany, and France, this collaboration is anticipated to drive an additional $1.6 billion in sales for eBay by the close of 2025. Analysts, including Enberg, suggest that the partnership could enhance the number of participants in the Marketplace, potentially addressing lingering trust issues. As eBay enters the fold, Facebook is not just expanding its inventory but also attempting to build a more robust community of buyers and sellers.
Though Facebook Marketplace does not operate as a major revenue source for Meta—it only takes a 10% commission on sales using its shipping services—its importance in maintaining user engagement cannot be overstated. In an era where nearly 97% of Meta’s whopping $164.5 billion revenue stream derives from advertising, platforms like Marketplace play a vital role. They serve to attract users—especially younger demographics—keeping them logged in and active even if their engagement is transactional rather than social.
Ultimately, while it may seem Facebook is losing the attention of younger users, the ability of Marketplace to engage them meaningfully highlights an unexpected avenue of growth and engagement. In navigating the complexities of a shifting digital landscape, Meta appears to have creatively repurposed its platform, ensuring its continued relevance in an online arena that is more competitive and dynamic than ever.