While Meta’s Facebook remains a global powerhouse, it faces declining popularity among younger audiences. According to a 2024 Pew Research study, only 32% of U.S. teens use Facebook today, a sharp drop from 71% in 2014. However, Facebook Marketplace has emerged as a key reason young people continue to engage with the platform.
“I only use Facebook for Marketplace,” said Mirka Arevalo, a student at Buffalo University. “I go in knowing what I want, not just casually browsing.”
Since its launch in 2016, Facebook Marketplace has become one of Meta’s biggest success stories, boasting 1.1 billion users across 70 countries. It competes directly with platforms like eBay and Craigslist, according to BusinessDasher.
“Marketplace is the flea market of the internet,” said Charles Lindsay, an associate professor of marketing at the University of Buffalo. “There’s a massive amount of consumer-to-consumer business.”
Unlike competitors such as eBay or Etsy, Facebook Marketplace does not charge listing fees, and local pickup options help users avoid shipping costs, according to Facebook’s Help Center.
“Sellers love that Marketplace has no fees,” said Jasmine Enberg, VP and Principal Analyst at eMarketer. “If Facebook introduces fees, it could drive users to other platforms.”
The platform also benefits from the booming resale market, which ThredUp projects will reach $350 billion by 2027.
“Younger buyers are drawn to affordability and sustainability,” noted Yoo-Kyoung Seock, a professor at the University of Georgia. “Marketplace offers both.”
A significant advantage is the added trust factor. Transactions feel safer because users’ profiles provide transparency, unlike anonymous platforms such as Craigslist, Seock explained.
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In January 2025, eBay partnered with Facebook Marketplace, allowing select eBay listings to appear on the platform in the U.S., Germany, and France. Analysts at Wells Fargo predict this collaboration will generate an additional $1.6 billion in sales for eBay by the end of 2025.
“This partnership increases the pool of buyers and sellers,” said Enberg. “It could also address some of Marketplace’s trust concerns.”
While Facebook does not charge listing fees, it takes a 10% commission on sales made through its shipping service, according to Facebook’s Help Center.
Although Marketplace is not a major direct revenue source, it plays a critical role in keeping users active on the platform.
“It’s one of the least monetized areas of Facebook,” Enberg noted. “But it drives engagement, which is crucial for advertisers.”
With over 97% of Meta’s $164.5 billion revenue in 2024 coming from advertising, maintaining user activity is essential.
“Marketplace allows Meta to show that younger users are still logging in,” said Enberg. “Even if they’re buying and selling rather than scrolling.”
By fostering engagement and adapting to evolving user habits, Facebook Marketplace remains a key part of Meta’s strategy to stay relevant in a shifting digital environment.
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