About this case. Facebook Marketplace is a real platform. This case describes typical seller and buyer behaviour in Nepal for teaching; it does not use data from Meta.

Overview

Facebook Marketplace has massive adoption for local trade (furniture, phones, rentals). Sellers use groups + Messenger; some graduate to storefronts.

Background

Facebook is the most widely used social network in Nepal, so its Marketplace and local buy-and-sell groups became a natural place for informal trade. Students sell used books and phones, families sell furniture when they move, landlords advertise rooms, and small home businesses sell food, clothes, and crafts. Listing is free, and buyers can see the seller’s profile and mutual friends.

Mechanics

  • Discovery via groups and Marketplace feed; trust through profiles and mutuals.
  • DM negotiation; COD or QR on delivery; pick‑up preferred for bulky items.
  • Informal policies; disputes handled via reputation and admin rules.

Outcomes

  • High liquidity with minimal platform friction; new sellers test demand quickly.
  • The most active sellers migrate to more formal tools (inventory sheets, pages, websites).

Lessons (Unit 7 lens)

  • Social graphs substitute for formal trust when institutions are weak.
  • Portals/platforms shape commerce behavior; policy changes impact sellers.

Case Questions

  1. Explain how the social graph (profiles, mutual friends, groups) substitutes for formal trust mechanisms such as escrow and ratings.
  2. Compare Facebook Marketplace with a dedicated classifieds site such as Hamrobazar for a seller of used furniture.
  3. What scams are common in informal social commerce, and how can buyers protect themselves?
  4. Why do the most active sellers eventually move to pages, websites, or inventory tools?
  5. What does the case show about the risk of depending on a platform owned by a foreign company?

Chapters covered

Use the unit notes below to review the theory this case applies in practice.