Facebook Marketplace grows to 1 Billion Users in the First Quarter of 2021, But will the Next Quarter Be Promising Too?

Facebook introduced its ecommerce section last year which lets businesses create product catalogs on their pages called Facebook Marketplace. It is a Craigslist-like service where users buy and sell with each other.

The Facebook Marketplace was introduced last year when the pandemic was at its peak. The CEO and the workers at the company thought that it was high time when people needed online platforms to shop and sell as more than half the world was under lockdown and everything was closed. This marketplace was made to help Facebook find new ways to generate more revenue through its various services on which the CEO said that the company would allow business owners to buy Facebook ads that open directly in WhatsApp from the WhatsApp Business app and Instagram plans to allow influencers to run their own shops on the app. Considering all this it looks like Facebook’s hard work over this past year for this marketplace is finally paying off.

The CEO and founder of Facebook Mark Zuckerberg shared some insights on the company’s latest earnings call which also included the revenue that was generated through the new Facebook marketplace.

The CEO enlightened the public that there are over one millions shops in the new space introduced by the company and over 250 million users are interacting with these stores in buying and selling products which is a huge success for the company.

The CEO after sharing this milestone of the company further said that the marketplace is still new for the tech giant and is still in its initial days. The company still has a long way to go where they will try to improve the old features on the space as well as further introduce new and unique options and tools in order to make that platform a more unique and easy to use one for their audiences. The company strongly believes that this modern commerce system is going to bring together a number of areas where we either already have strong offerings like in ads, community tools and messaging with areas like shops and business messaging and payments.

So far the company is doing pretty great for a new ecommerce space. It has generated over $26 billion in revenue this year which is 48 percent increase if you compare it with the revenue that was generated last year. The user growth has also made it to a mark of 1.88 billion daily active users from around the globe.

However, though the first quarter of the year 2021 looked promising for the company it seems like that the next quarter can be a bumpy ride considering how Apple has issued it version of iOS 14.5 which has a App tracking transparency feature which will require iPhone users to agree to Ad tracking. So there are chances the revenue of Facebook Marketplace will go down considering how targeted ads will not have generated to the audience on Facebook in the coming quarter.

Read next: Facebook has imposed strict legal action against the sale of Counterfeit goods across all of its platforms

Previous Post Next Post