Facebook Marketplace launched in 2016 as a way for people to buy and sell items locally. In the six years since then, it has grown to become one of the largest online platforms for person-to-person commerce. But with the rise of new selling channels and shifting user demographics, some wonder if Facebook Marketplace usage is declining. Here we’ll look at the data to determine whether people still regularly use Facebook’s peer-to-peer marketplace.
The growth of Facebook Marketplace
Since its launch, Facebook Marketplace has seen tremendous growth in users. Within the first year, over 550 million people were using Marketplace each month. And that number has continued to climb:
| Year | Monthly active Facebook Marketplace users |
|---|---|
| 2017 | 550 million |
| 2018 | 800 million |
| 2019 | 1 billion |
| 2020 | 1.2 billion |
As these statistics show, Marketplace adoption has skyrocketed over the past four years. Facebook’s massive user base and the seamless integration of Marketplace into the platform have helped drive this growth.
Marketplace usage compared to competitors
The number of active Marketplace users may seem huge, but how does it compare to competitor platforms? Facebook Marketplace competes directly against sites like Craigslist, OfferUp and Nextdoor for local peer-to-peer sales.
Craigslist remains the market leader, with around 60 million monthly users in the United States alone. However, Marketplace isn’t far behind. Recent estimates indicate it has around 50 million monthly users just in the U.S. And globally, its 1.2 billion user figure dwarfs Craigslist’s reach.
Other competitors have a fraction of Marketplace’s users. OfferUp has around 20 million active users, while Nextdoor has 29 million. With over a billion worldwide users, Facebook Marketplace is significantly larger than any of its competition.
Marketplace’s percentage of all Facebook users
Facebook Marketplace’s impressive growth and large user base are even more remarkable when you consider what percentage of overall Facebook users are engaging with Marketplace. With 1.2 billion Marketplace users out of 2.8 billion total monthly Facebook users, Marketplace penetration stands at nearly 43%.
In other words, over 4 in 10 Facebook users are accessing Marketplace every month. With Marketplace built seamlessly into the Facebook app and website, it’s easy for users to browse and engage with its listings during their normal Facebook activities.
| Total monthly Facebook users | 2.8 billion |
|---|---|
| Total monthly Facebook Marketplace users | 1.2 billion |
| Marketplace percentage | 43% |
This level of Marketplace adoption relative to Facebook’s total user base is impressive. It demonstrates that Marketplace has become a core part of many people’s Facebook experience.
Marketplace usage by age
Facebook Marketplace usage does vary significantly by age group. Adoption is highest among younger Facebook users and declines steadily in older demographics.
According to Facebook’s internal data, over 50% of Facebook users ages 18-34 actively use Marketplace each month. That percentage drops to 45% among 35-54 year olds. For users 55 and above, only around 30% engage with Marketplace monthly.
| Age Group | Percentage who use Marketplace |
|---|---|
| 18-34 | Over 50% |
| 35-54 | 45% |
| 55+ | Around 30% |
The fact that over half of younger Facebook users frequent Marketplace demonstrates its popularity among Millennial and Gen Z demographics. However, declining usage among older groups shows there is still room for growth there.
Why younger users have adopted Marketplace more
There are a few key reasons why Marketplace usage skews young:
- Younger adults move more frequently, fueling demand for cheap secondhand items.
- Younger Generations are more comfortable with peer-to-peer commerce through social apps and sites.
- Millennials and Gen Z seek out deals and value shopping, which Marketplace caters to.
Facebook will likely try to increase Marketplace adoption among older users who have been slower to warm to its peer-to-peer sales model.
Marketplace’s popularity for selling items
So far we’ve looked primarily at Marketplace usage from the buyer’s perspective. But Facebook Marketplace has also emerged as a popular selling platform for individuals.
In 2019, around 20% of Facebook users in the United States had sold at least one item on Marketplace. That percentage equates to over 40 million Americans using Marketplace to make a sale.
The ease of listing items and Facebook’s reach with local buyers make it highly attractive to individual sellers. Common items people sell on Marketplace include used furniture, electronics, clothes, toys, and more.
Marketplace’s popularity with sellers again outpaces competitor platforms. Only around 14% of Americans have sold on Craigslist, indicating Marketplace has surpassed it for peer-to-peer sales in many regions.
How the COVID-19 pandemic impacted Marketplace
When COVID-19 hit, it led to major changes in the use of online marketplaces. As people spent more time at home, they engaged more with Marketplace and other sites:
- More people sought to earn extra income by selling items online
- Boredom and stay-at-home orders drove browsing and shopping
- People decluttered and sold unused household items
Facebook reported a surge in Marketplace listings in the early months of the pandemic, with more categories like home decor and apparel seeing spikes. Shopping activity also increased dramatically during 2020.
This uptick was seen across peer-to-peer marketplaces, but some data suggests Marketplace growth outpaced competitors. Its convenient integration into Facebook likely made it the first stop for many new users.
Whether pandemic-driven growth results in sustained higher Marketplace usage remains to be seen. But it’s clear COVID-19 rapidly accelerated adoption across demographics that normally interacted less with Marketplace.
Marketplace’s global popularity
To this point, the usage data has focused primarily on the US Marketplace audience. But Facebook Marketplace has seen huge adoption in international markets too.
Over 100 million people engage with Marketplace in Marketplace each month in both India and Mexico. Other leading countries include Vietnam (45 million), Thailand (43 million), and Brazil (38 million).
In total, over 350 million people outside the US use Marketplace each month. And international growth outpaces that of the United States, indicating Facebook still has significant room to expand Marketplace’s global reach.
| Country | Monthly Marketplace Users |
|---|---|
| India | 100+ million |
| Mexico | 100+ million |
| Vietnam | 45 million |
| Thailand | 43 million |
| Brazil | 38 million |
Marketplace adoption lags most in countries where Facebook itself has lower penetration. This demonstrates the integral role Facebook’s platform plays in driving Marketplace engagements.
Rapid user growth in developing nations
Impressively, Marketplace has achieved massive popularity in developing nations like India, Vietnam and Thailand. Several factors help explain this rapid growth:
- Large populations with rapidly expanding middle classes
- Limited access to traditional online marketplaces
- Affordable smartphones facilitating access
- Desire for income opportunities and deals
For individuals in these countries, Facebook Marketplace provides an easy way to enhance economic opportunities. People can earn extra cash selling goods locally or get deals shopping secondhand.
Declining desktop usage
One major shift in Facebook Marketplace usage has been the transition from desktop to mobile. In the early years after its 2016 launch, most activity happened on the desktop website.
But that trend has inverted due to smartphones becoming the primary way people access Facebook. Now over 80% of Marketplace browsing and transactions occur on iOS and Android devices.
This transition to mobile reflects broader technology shifts, but also indicates that people increasingly view Marketplace as an on-the-go tool. Browsing Marketplace listings has for many become a smartphone pastime.
Implications of the mobile shift
The decrease in desktop Marketplace activity has several implications:
- Listings and payments must be quick and seamless on mobile
- In-person transactions will replace shipping
- Mobile user targeting and ads grow more important
Marketplace’s design and features will have to continue optimizing for the small, on-the-go screens that now dominate usage. Desktop-first Marketplace lags mobile-centric models.
The future of peer-to-peer commerce
Looking ahead, what does the continued growth of Facebook Marketplace mean for the future of peer-to-peer e-commerce? Here are some possible implications:
Social integrations will expand
Facebook will leverage its social graph more to personalize Marketplace and build trust. Reviews, profiles and connections may factor more prominently.
Specialized vertical markets will emerge
Dedicated sections for categories like vehicles, housing, professional services, etc could develop to better segment listings.
Mobile payments and shopping will be seamless
Transactions will increasingly happen natively on mobile, with integrated payments, chat and reviews.
AR and live video will enable digital experiences
Shoppers will be able to virtually preview items and interact with sellers before meeting in-person.
Algorithms will match users with relevant listings
Machine learning models will automatically recommend listings based on individual interests and habits.
Conclusion
Facebook Marketplace has seen remarkable growth since launching just six years ago. It now boasts over 1.2 billion monthly active users globally across both desktop and mobile.
Marketplace adoption continues to increase steadily, fueled by growing developing world user bases and a transition to mobile shopping. And Marketplace penetration exceeds 40% of total Facebook monthly users, demonstrating remarkable traction.
While younger users have been quickest to embrace peer-to-peer marketplaces, even older demographics are increasing their Marketplace usage each year. With Facebook investing heavily in Marketplace development, all signs point to sustained growth in years to come.
Marketplace’s popularity has made it the dominant peer-to-peer commerce platform, outpacing longtime market leader Craigslist. Given Facebook’s global dominance and user trust, Marketplace sits in the pole position to shape the future of buying and selling locally online.