Facebook Inc. (NASDAQ:FB) is amongst the most innovative businesses of our times. This social media giant has been a huge success, attracting millions of users every day. Engagement is very high, sometimes addictive.
The business recently launched “Marketplace” where users can buy and sell things to others on Facebook. Payment is through Messenger. For now, it has been launched in the UK, USA, New Zealand and Australia on mobile as the website wants to collect feedback, make changes, and finally go for a bigger launch later. If the service proves successful, then Facebook will surely offer it to everyone around the world.
Before the Marketplace, there was the option to make “For Sale” posts in Facebook groups, many of which have more than 50,000 members. According to data, about a quarter of the 1.71 billion users of Facebook visit such groups now every month. Then in last October, Facebook started testing their “Local Market” feature.
These two have probably contributed to the development of the Marketplace.
Facebook’s Commerce Initiatives Not Yet a Hit
The Cambridge, Massachusetts-based business has been trying different things to make people shop on the website, but without a lot of success. To be honest, shopping has never been one of their strengths. But with close to 2 billion people on board, which is almost 50 percent more than the population of China, if they can find a way, then that would give Facebook potentially millions, and even billions of dollars.
This is why they keep trying. As of now, though, advertising remains the main source of revenue for them. In time, they will want to surely open up other areas to monetize the traffic and this is the reason for these efforts.
Marketplace Is Not Yet Profitable
Facebook Inc. (NASDAQ:FB) isn’t making money yet from its online shopping platform, but the company says it doesn’t care. The head of commerce, Mary Ku, recently said, “The way Facebook thinks about monetization is, first, did you have a good experience? How can we bring other business into this experience”?
Ku leads their commerce efforts. She has been with Facebook for about two years. Before that, Mary Ku was with PayPal for nine years.
People shop in different ways, feels Ku, and so, Facebook is giving them all kinds of choices. In doing this, they are surely collecting data on consumer behavior, which will be used later at the right time.