Online Classified Market Trends

Growth Drivers

• Shift toward digital commerce and peer-to-peer transactions: Consumers and small businesses are adopting digital transactions in businesses, from buying and selling second-hand goods to renting property, or offering local services via classified platforms. The rising preference for digital and contactless transactions has increased, especially post-pandemic. Thus, online classified platforms are combining secure payment methods and escrow services to enable safe transactions. According to the American Marketing Association (AMA), in 2024, around 73% of marketers find social media marketing to be somewhat or very effective for growing their businesses. The same source also states that Facebook is the leading social media platform, with 3.05 billion monthly active users, nearly 37% of the world’s population. This indicates the direct consumer interaction trend aiding the online classifieds’ growth.
• Growth in e-commerce and gig economy ecosystems: The rise of e-commerce and the gig economy has transformed into online classifieds, where freelancers, service providers, and small sellers find an accessible marketplace. This also consists of classified ads for jobs, services, and rentals. In Southeast Asia, platforms such as Carousell have expanded beyond second-hand goods into services and jobs. In December 2023, Carousell announced that its user community prevented 116,577 tons of carbon emissions in 2022 in four goods categories. This is equal to the amount of CO2 absorbed by 5.3 million trees in a year. This indicates the lesser use of paper for classifieds.
• Integration of AI, search filters, and location-based services: The incorporation of AI, intelligent search filters, and location-based services improves user experience by showing more relevant, personalized, and secure interactions. This builds trust and results in increased engagement and conversion rates on these platforms. For instance, Dubizzle in the UAE has integrated AI-driven chatbots and fraud detection tools to streamline the buyer-seller interaction. In June 2025, Dubizzle Group announced a big achievement that in just one month, over 100,000 product listings were made using their Sell with AI tool. Thus, continuous technological innovations are set to increase the market dominance of key players in the years ahead.

Challenges

• User trust and platform credibility: One of the key challenges in the online classified market is building and maintaining user trust. Unlike structured e-commerce platforms, online classifieds depend heavily on peer-to-peer interactions, often involving unverified users, informal transactions, and in-person meetings. This creates an increased risk of scams, fake listings, misrepresentation, and safety concerns, which can significantly deter user confidence. For instance, platforms such as Facebook Marketplace and OLX have faced huge complaints of fraudulent activities, prompting them to introduce AI-driven content moderation, user verification tools, and safety guidelines. Despite these efforts, ensuring a secure and trustworthy environment remains a major hurdle, particularly in regions with lower digital literacy or regulatory oversight. Without strong user trust, platform growth, engagement, and retention are difficult to sustain.
• Intense Competition: The online classified market is highly competitive due to the thousands of websites worldwide, pushing platforms to work hard to keep users engaged and loyal. Users have many options and easily switch to other sites for better experiences, lower prices, or more listings, making it tough for companies to engage them and build strong, lasting connections. Further, some key players are investing in marketing to stay noticeable among competitors.