Thoughts on Facebook Marketplace

This morning I had someone call me and ask me my thoughts on Facebook Marketplace.  I remember reading about it but hadn’t honestly spent very much time in the app so I went out and took a look. 

I have to admit that I think the idea is genius, Facebook could do really well from this, after all they have built the user base, and certainly have the traffic, but I am a little concerned about the format.  While pretty much anything related to Facebook is impressive in terms of numbers, heck the Farmtown people have even cashed in, I think that the direction the Facebook Marketplace should head is towards what Ebay has done so well for years, possibly integrating Amazon’s model as well. 

Another avenue that Facebook could explore with this marketplace application could be the payment processing market, I know that there has already been a lot of speculation regarding this but I think it’s worthy of mention because if and when it happens, it’s going to be big. 

The current Facebook Marketplace model was put together by a company called Oodle, here’s some info from Facebook’s blog back in March about what they are doing…

Today, we’re launching Facebook Marketplace powered by Oodle—and adding even more functionality so you can easily create, share and respond to listings. Facebook first introduced the Marketplace application on Facebook Platform in May 2007 as a way for people to post classified listings on the site. Marketplace helps people buy and sell furniture and household items in a trusted environment. Late last year, Facebook turned to Oodle for its expertise in online classifieds, and Oodle has built an entirely new version of Marketplace focused on giving people a place to buy, sell or give things away to the people they know.

If you previously had the Marketplace application installed, you’ll continue to see it bookmarked on the Applications tab in the lower left hand corner of your screen. And if you have an active listing in Marketplace, you’ll be given the option to transfer it to the new Facebook Marketplace powered by Oodle.  You’ll be able to access the Facebook Marketplace powered by Oodle from the Application Directory, as well.

We’re also excited to introduce new features including Sell for a Cause, which allows you to donate the profits of the items you sell to over a million participating charities including UNICEF, the Sierra Club and local organizations like the Boys and Girls Club of San Francisco. For instance, I’m selling some of the toys that my kids have outgrown to support the Samaritan House, a local charity in Oodle’s hometown of San Mateo, California, that supports programs for families in need. If every person on Facebook sold something for just $1, we would be able to collectively raise over $175 million for causes around the world.  In the coming months, we’ll be rolling out even more functionality and categories, so please be sure to let us know how we’re doing.