Facebook Marketplace was a popular place for people to buy and sell items locally. However, in October 2022, Facebook announced they would be shutting down Marketplace by the end of the year. This left many users wondering – what will replace Facebook Marketplace?
The decline of Facebook Marketplace
Facebook Marketplace launched in 2016 and quickly grew in popularity. At its peak, over 1 billion people were using Marketplace each month. However, engagement on the platform started declining around 2020. There were a few key reasons for this:
- Increasing competition from other sites like Craigslist, OfferUp, and Nextdoor
- Changes to Facebook’s algorithm that made Marketplace listings less visible
- Shift in user preferences towards more visual platforms like Instagram and TikTok
- Facebook’s scandals around data privacy and election interference caused some users to avoid the platform
By 2022, Marketplace only had around 550 million monthly active users. Facebook likely decided shutting it down completely was preferable to spending resources trying to revive the declining platform.
Top replacements for Facebook Marketplace
Where should Facebook Marketplace sellers and buyers go now? Here are some of the top alternative platforms:
Craigslist
Craigslist has been around since 1995 and is one of the original online classifieds sites. It already had a strong user base before Facebook Marketplace arrived. Key facts about Craigslist:
- Completely free to post most ads, besides job listings
- Website is very simple and text-based
- Has sections for housing, jobs, items for sale, community events, and discussion forums
- Very popular for apartment rentals and secondhand goods
- Mainly focuses on local in-person transactions
Craigslist lacks some of the more advanced features of Facebook Marketplace, like image carousels and messaging within the app. But its simplicity and strong brand name will likely attract many former Marketplace users.
OfferUp
OfferUp launched in 2011 as a mobile-focused alternative to Craigslist. Here are some key OfferUp details:
- Has Android and iOS apps with integrated messaging
- Allows sellers to easily post items through the smartphone app
- Offers profile verification for increased trust and security
- Shows seller locations on a map to find listings nearby
- Has over 56 million downloads in the U.S. alone
OfferUp provides a more modern mobile experience compared to Craigslist. The app-based platform will likely appeal to younger users who are comfortable transacting through their smartphones.
Nextdoor
Nextdoor focuses on local neighborhood groups and community building. Here is some background on Nextdoor:
- Users must verify their address to join neighborhood-specific groups
- Has sections for classifieds, community events, recommendations, and discussions
- Used by over 45% of U.S. households across 260,000+ micro-neighborhoods
- Popular with homeowners and families
- Nextdoor Communities feature allows buying/selling between neighborhoods
Nextdoor has a friendlier, more communal feel than some other platforms. The local network effects and address verifications may inspire trust among buyers and sellers as well.
Facebook Groups
Facebook Groups related to buying and selling could also fill some of the void left by Marketplace. Benefits of Facebook Groups include:
- Ability to join Groups related to your city, neighborhood, interests, and more
- Groups often have an approval process and rules that enhance security
- Integrated with users’ existing Facebook profiles and connections
- Group admins can moderate to prevent spam and fraud
- Facebook’s platforms still have huge user bases and network effects
Dedicated buy/sell Groups on Facebook lack some key marketplace features, but provide community and tools for local transactions that many find trustworthy.
eBay
eBay is better known as an online auction site, but has expanded into broader ecommerce. Here is an overview of eBay:
- Over 159 million active buyers as of Q2 2022
- Sellers can list new and used goods at fixed prices or auctions
- Offers secure checkout and purchase protection programs
- Has improved handling of local pickup options
- Top categories include electronics, motors, fashion, collectibles, home & garden
eBay isn’t just for rare collectibles anymore. Its massive buyer base and trusted payment systems make it appealing for everyday transactions too.
Where will former Marketplace users go?
Former Facebook Marketplace users will likely shift their buying and selling activities across several platforms. Here is a breakdown of where different Marketplace user segments might migrate to:
| User Segment | Where They Will Likely Go |
|---|---|
| Casual sellers cleaning out their closet or garage | OfferUp, Craigslist, Facebook Groups |
| Collectors and enthusiasts | eBay, specialty forums and Groups |
| Apartment renters and home buyers | Craigslist, Zillow, real estate Groups |
| College students selling furniture and household goods | OfferUp, Craigslist, Nextdoor |
| Parents trading kids clothes and toys | Nextdoor, Facebook Groups, Craigslist |
| Small business owners and side hustlers | Craigslist, eBay, specialty sites like Etsy |
In general, Craigslist, OfferUp, and Nextdoor seem best positioned to pick up the casual buyer and seller crowd. Specialty platforms and communities will gain the enthusiasts. eBay stands to benefit from small business owners expanding beyond just Marketplace.
The future of local commerce and classifieds
While Facebook Marketplace is going away, local classifieds and community buy/sell groups are clearly still thriving. What does the future look like for these platforms?
Continued mobile and visual focus
Future platforms will cater even more to mobile users. Quickly browsing or listing items on an app, paying securely, and messaging with buyers will be key. Visually engaging interfaces with less emphasis on text descriptions will also draw in younger users.
Hybrid model of community + marketplace features
Pure marketplace functionality like listings, payment, and reviews remain important. But users also want a human community element based on trust and relationships. Next-generation platforms will blend these social and transactional capabilities.
Local focus and verifications
Buyers and sellers prefer platforms that verify identities and shipping locations to reduce fraud and scams. At the same time, keeping things hyper local helps build connections between neighbors and nearby enthusiasts.
Specialization for niche interests
General classified platforms will co-exist with more niche communities focused on specific hobbies, demographics, and categories like cars, art, pets, electronics, etc. These specialized sites cultivate deeper relationships between buyers and sellers.
Conclusion
The shutdown of Facebook Marketplace marks the end of an era. But local online commerce remains vibrant across multiple platforms. Buyers and sellers now have choices including Craigslist, OfferUp, Nextdoor, eBay, Facebook Groups, and specialty sites tailored to specific interests. While Marketplace had its advantages, splitting users across different communities may ultimately be healthier for the ecosystem long-term. The next generation of mobile-first, community-driven marketplaces has the potential to meet user needs in innovative new ways.