Facebook Inc. is channeling eBay Inc. in its latest effort to
become a trading bazaar.
The social network is making it easier for its 1.49 billion
users to buy, sell and trade used items from cars to waffle irons
through a Facebook group.
Facebook says more than 850 million people use its Groups
feature each month, exploring shared interests ranging from
politics to specific diseases.
The company launched For Sale Groups late last year, and has
been steadily adding tools. On Thursday, Facebook removed a
requirement that the company approve creation of those groups.
The move is Facebook's latest advance into commerce. Last month,
it said it was testing a way for businesses to sell items through
their Facebook pages. In March, Facebook said it would allow users
to track online orders through its Messenger app.
Brian Solis, an analyst at Altimeter Group, said Facebook is
hoping users will spend more time and money on its sites.
More than half of U.S. Internet users visit Facebook daily, but
fewer than 5% see social media as a starting point for shopping,
according to a recent survey by R.W. Baird analysts.
"Why should you leave [Facebook] just go buy something?" said
Mr. Solis.
For now, Facebook isn't generating revenue from For Sale Groups.
It isn't charging either listing or transaction fees.
Facebook's push pits it against eBay and Craigslist, which have
far more experience linking buyers and sellers. EBay says it has
about 800 million items listed globally.
"EBay is one of the easiest, safest and most efficient ways to
sell online. Our simplified selling process provides pricing
guidance to help sellers get the most out of what they own," said
Vincent Payen, eBay's head of consumer selling.
Facebook declined to say how many listings or transactions it
has had. But it says clothing, cars, auto parts, books, crafts and
sports equipment are some of its most popular categories.
Still, Facebook has roughly 10 times as many active users as
eBay, which reported 157 million such users at the end of June.
This isn't Facebook's first foray into the secondhand market. In
2007, it rolled out a feature called Marketplace, which never took
off, in part because it lacked a way to search by location and
sellers wanted to reach an audience beyond their network of
friends.
Facebook managers say the current initiative is different
because its taps into the way its users behave. For example, after
noticing that users were posting on groups and polling others about
the reliability of sellers, it is creating a way for them to
recommend a buyer or seller after a transaction.
Richard Jenkins, 42 years old, owns two comic-book stores around
London called Raygun. He has been selling on eBay for about 15
years and says the e-commerce company accounts for 20% to 25% of
his annual sales.
Mr. Jenkins began selling through Facebook groups for comic
enthusiasts about three years ago.
So far, he said, the sales are "a drop in the ocean." But he
thinks the effort helps his brand and "reflects well on my
business."
The idea for For Sale Groups emerged after Facebook engineers on
a research trip to Indonesia two years ago saw users tapping groups
for commerce, said Bowen Pan, Facebook's product manager for
commerce.
Earlier this year, the company introduced a "sell" feature that
made it easier for users to list items within Facebook-approved For
Sale Groups.
This week Facebook started allowing U.S. users to send payments
to one another over its Messenger app, even if they weren't
Facebook friends, said Deborah Liu, the company's head of platform.
It is exploring how to let buyers and sellers trade messages more
easily.
"We're really just thinking about how we connect this all
together to make it easier to buy and sell," Ms. Liu said.
Facebook spun out Groups as its own app last November.
At Facebook's annual developer conference in March, Groups was
projected on screen alongside Instagram and WhatsApp as Chief
Executive Mark Zuckerberg outlined his suite of apps strategy.
Write to Deepa Seetharaman at Deepa.Seetharaman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 03, 2015 22:15 ET (02:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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