Marketplace idea arose from Indonesia

Activities of Facebook (FB) users in Indonesia gave the social media giant an idea for a new product: Marketplace—a consumer-to-consumer local buying and selling platform.

“Marketplace is a great example of where we saw people using our product in another part of the world that we didn’t expect and then behind that, ended up building a product about it,” said Facebook’s chief marketing officer, Gary Briggs, when he spoke at a recent technology conference organized by Wells Fargo.

Facebook saw that its users in Indonesia were buying and selling items within groups, so it decided to create a product around that activity, giving way to Marketplace.

The Lesson Facebook Learned from Indonesia

A $165.6 billion industry

Facebook has scaled out its Marketplace service to markets such as the US (SPY), the UK (EWU), Australia, and New Zealand. Marketplace allows Facebook gain a foothold in the social commerce industry, which research firm TechNavio predicts could be worth $165.6 billion by 2021.

According to business intelligence firm eMarketer, Facebook accounts for the vast majority of US social commerce purchases. In an October 2017 study, 47.7% of respondents said they made their most recent purchase from Facebook, compared with 8.6% of respondents citing Instagram and 4.5% of respondents citing Alphabet’s (GOOGL) YouTube.

Facebook carefully scaling Marketplace

Briggs noted that the company has been slow to grow Marketplace, which doesn’t point to a weakness but careful execution to ensure that users have a great experience with the service.

Latest articles

President Trump tweeted about his plans to meet with Apple (AAPL) CEO Tim Cook. It's possible that they could discuss Apple’s US manufacturing plans.

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.