Facebook launches Marketplace to look to e-commerce

Facebook announced on Monday it is launching Marketplace, its version of the local rummage sale. With its 1.71 billion users, it's trying to capitalize on the e-commerce potential of its massive user base. According to company, more than 450 million people already visit Facebook groups that have items to buy and sell each month.

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 is where people connect, and in recent years more people have been using Facebook to connect in another way: buying and selling with each other," wrote Mary Ku, Facebook's director of product management. " 

The Marketplace icon will now appear at the bottom of the screen on the Facebook mobile app on iOS and Android. The feature is set to roll out to users 18 and older in the U.S., UK, Australia and New Zealand over the next few days, according to the company.

About payments, the company categorically states that it is not performing the role of a retailer or auction site: "You and the seller can work out the details in any way you choose. Facebook does not facilitate the payment or delivery of items in Marketplace".

Sites like eBay and Craigslist will be watching Marketplace with keen interest, but it remains to be seen how well Facebook users can sell to users across state lines and internationally on its new market.

"Facebook is coming close to saturating time spent on the kinds of things people use Facebook for, but opening up new categories of social activity means you open up new segments of time to tap into as well," said Jan Dawson, chief analyst with Jackdaw Research.