Facebook Inc FB Marketplace understandably has eBay EBAY investors spooked. Much like Apple Inc. AAPL, when Facebook enters your space, your days are numbered.
Said to be a "friendlier Craigslist," 450 million people already utilize buy and sell groups on Facebook, the company is capitalizing on the e-commerce potential of its massive user base.
The new marketplace allows users to find things to buy from users nearby, list items quickly, and through Facebook messenger, users can communicate to negotiate deals and arrange a meet up. Facebook marketplace is looking more like the new local classified apps we are seeing pop up, that allow you to browse, sell, and search your surroundings.
Local classified apps have been all the rage recently, making Craigslist and eBay looking like the Internet of the past. Popular new apps Letgo, and eBay's own entrance into local classifieds with its Close5 app have been performing quite well, and likely the reason Facebook is entering this space with a lot of momentum.
Image credit: TechCrunch
Already Facebook's new marketplace has a leg up on its competition, as it is more transparent that Craigslist as it displays Facebook user profiles, and doesn't have the exorbitant fees that eBay is charging these days.
eBay marketplace could certainly be in trouble, but it remains to be seen how well Facebook users can sell to users across state lines and internationally on its new market.
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