Facebook Marketplace Threatens eBay, Gumtree
Online marketplaces, popular with distributors and retailers for selling excess or aging stock, are reportedly coming under threat from the Facebook Marketplace, according to the social media company’s vice president.
In an exclusive interview with The Australian, VP of Marketplace Deb Liu claimed Facebook Marketplace is stealing market share from eBay and Gumtree, due to users being able to guarantee interaction with a real person through their Facebook account.
Trust has been identified as a critical aspect of Facebook’s success in online marketplace sales, recognising the trust individuals have with buyers and sellers in traditional brick n mortar retail environments.
“It’s local, and it’s real people,” said Ms Liu, who has been with Facebook for ten years.
Having come from eBay and PayPal, Ms Liu is well experienced in the position, growing Marketplace from less than 1000 employees.
“We’re bigger, and that means we have more tools and can test things better.”
The goal of the Facebook Marketplace was to expand beyond buying and selling within private groups, where only members were able to see items for sale.
According to Ms Liu, Marketplace has around 800 million users, just 200 million shy of the total facebook user base at 1 billion.
Facebook will soon begin testing product shipping options for the Marketplace in Australia, with small businesses particularly keen on the opportunity.
While eBay has always offered shipping options for purchased products, Gumtree does not, giving Facebook a legitimate edge over the local Australian marketplace.