The boom in e- commerce was caused by the coronaviruses. Deb Liu, founder and vp of Facebook Marketplace, told Modern Retail that supply and demand have people connecting more than ever. Consumers are turning to local marketplaces for goods because of the continued shipping delays and sold out inventory from retailers. Both retailers and independent makers are being attracted by the same thing. Everyone from artisans to wood workers to car sellers are thriving.
Over the past 10 months, Facebook has launched several features to keep sellers and buyers safe. There’s an increase in shipping options on the marketplace.
Local sales between neighbors has been the focus of Marketplace since it launched. The platform has invested in long-distance shipping tools in the past couple of years. The number of categories that can be shipped has been increased. In mid-2020, the sellers of the marketplace began to offer shipping on clothing and footwear. Many members of the Facebook shopping groups are looking to buy new items. Facebook said it will double down on tools to attract storefronts and individual sellers to the site.
The homeware boom reaches Marketplace
The growth of Marketplace was due to global e- commerce. E-Commerce sales grew 27.6% in 2020, up from 20.2% the year before. The categories took off on Facebook. In the past year, furniture has become one of the most searched categories on the platform. Handmade decor and plants facebook marketplace ad posting service are included in the homeware sub- category. According to Modern Retail, sellers have become more reliant on the platform during the Pandemic because of its checkout and customer communications capabilities.
In the past year, Beautiful Fight Woodworking has turned Marketplace into its main sales channel, rather than focusing on its own website. The small business, which recently opened a brick and mortar retail store in Springfield, Mo., hit revenue records of $266,000 in 2020, with $168,000 of sales coming from Marketplace Over 1,400 items have been sold by the co-owners. After noticing an increase in repeat customers, the owners of Beautiful Fight Woodworking created a Facebook page. They used the Facebook page to streamline their orders.
The owner of Clara’s Green House, Clara Leung, has seen her business grow in recent months. Video and communication were what drew her to the platform. The plant studio has been located out of her home in D.C. since 2019. Clara is a member of the sign language community. She uses Messenger to communicate with her customers. During the Pandemic, Leung sold thousands of plants and planters and has since created virtual workshops on Facebook to connect with customers.
Still a minor player
The area of growth for Facebook is still in the early stages. It’s difficult to say how well the vertical is doing in comparison to its parent company since Facebook doesn’t break out revenue figures. Forrester analyst Sucharita Kodali said that she had heard anecdotally that Facebook was doing well.
12% of people said they made purchases from Marketplace in 2020. The fifth most popular online marketplace in the U.S. is Facebook Marketplace.
Making it easy to discover products is one of the keys to the success of the business. They haven’t figured out how to blend ads and organic listings yet, and it’s still amish-mosh of items.
Facebook says commerce is a priority. Digital sales tools have been added to meet seller demand. When car sales began to take off a couple of years ago, Marketplace enabled the addition of verified vehicle identification number.
Social commerce is another area of opportunity for sellers. Live shopping will be integrated in 2020. The company plans to build on the success of previous products, which were launched prior to the swine flu. Facebook began adding more third-party e- commerce partnerships with Marketplace, and the platform allowed brands to integrate with other platforms, for a 5% commission fee.
The sheer amount of Facebook users is the biggest advantage over its competitors. According to Statista, Facebook has over 2 billion users monthly. At the end of the day, we want to focus on community focused business.