An unprecedented growth of 30% in global eCommerce was recorded in 2020, with predictions for an even further demand to be registered by the end of 2021. Experts in the field are now looking to Facebook, in which a new venture allows for social marketplaces to be monetised through advertising revenue, as a potential match to compete with Amazon.

It was thought that the online shopping-turned-technology giant had demonstrated its invincibility to competitors with an impressive 2020 Q3 sales growth of 37%. However, the Mark Zuckerberg founded company could now construct itself a significant diversion of traffic away from Amazon in the near future.

Facebook’s eCommerce divisions exist in the moulds of Marketplace and Shops. The former can be compared to eBay, acting as a destination for anybody in the world wanting to list their unwanted items for sale, whereas the latter operates under the slogan: “Helping small businesses sell online,” launching as recently as May of 2020. Taking advantage of shopfront closures caused by the pandemic, and acting as a force of good, the new initiative encourages consumers to support their local stores – driving eCommerce in doing so. The brand, of course, benefits from a wave of good PR surfing along with this gesture.

It was claimed that, across 70 countries, Marketplace had 800 million monthly active users in 2018. It effectively monetises by promoting the idea of financially boosting listings, at varying costs to users, thus prioritising them over others’ items and increasing their likelihood of success in sales. For the time being, Facebook Shops is only available in the US – it offers optional advertising add-ons, including A-B testing from $500 per campaign, to the independent businesses using its service.

Unlike traditional eCommerce platforms, which may profit from sales of its own products, Facebook benefits through selling usage data, user attention and advertising space. Its social business accounts and automated ads act as facilitators of browsing and the selection of products, inside a social network with an already-existing and captive audience.

Analysts are speculating that the social media titan has big ambitions to become a ‘super app’. A go-to hub where consumers can buy products, send money and message sellers. With 2.7 billion users, it would be unthinkable to call the company an underdog… more likely, an unstoppable force.

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