Facebook has been slowly growing its commerce tools for small businesses.
This comes after a year of big growth. Not only were people increasingly using the social networks — a July 2020 Harris Poll, conducted between late March and early May, found that between 46% and 51% of U.S. adults were using social media more since coronavirus began — but more users turned to it for commerce via its online Marketplace. Facebook doesn’t break out Marketplace’s latest user metrics, but at its fourth quarter earnings, its strongest revenue increase came from the “other” segment, which includes Marketplace and virtual reality subsidiary Oculus. Combined, the “other” revenue spiked by 156% year-over-year to $885 million. In comparison, during the same time period Amazon’s third party sellers’ business grew 53% year-over-year, to $20.4 billion.
Marketplace’s newfound growth was likely because of the coronavirus-induced e-commerce boom. “Supply and demand has people connecting more than ever on Marketplace,” Deb Liu, founder and vp of Facebook Marketplace, told Modern Retail. These factors include the continued shipping delays and sold out inventory — such as work from home desks and gardening supplies from retailers — leading consumers to turn to local marketplaces for goods. At the same time, Marketplace is working on attracting both retailers and independent makers. “We’re seeing everyone from artisans hand making goods, to wood workers to car sellers thrive,” Liu said.Modern Retail