Facebook wants to replace Craigslist and eBay with a new section in its app

By: BusinessInsider.com

 

Facebook is gunning after Craigslist and eBay.

On Monday the social network introduced a new tab in its mobile app called Marketplace, which lets you buy and sell things to people in your city. It will replace the Messenger shortcut in the bottom center of the main Facebook app.

Facebook says it created Marketplace because 450 million people already buy and sell things every month to each other through organized Facebook groups — think “Electronics for sale in Menlo Park, California.”

Still, it’s a bold move for Facebook to put classified listings so front and center. And investors took note, with shares of eBay trading down as much as 4.5% at one point on Monday, before gaining back some of the lost ground.

This isn’t the first time Facebook has tried to do classified listings, either — it launched a nearly identical feature that was also called Marketplace in 2007. While Marketplace didn’t catch on then, Facebook is clearly hoping it will now.

Here are some important things to know about how Marketplace works:

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