Let’s face it,  the social marketplace has gotten its share of bad press, brought by anonymous listings and other Craigslist-related debacles. In an effort to bring back people’s confidence in it, Oodle launched an updated version of its popular platform, which has turned into more of a social marketplace. It powers Facebook Marketplace and Oodle, and offers a version for smartphones as well.

“Oodle is evolving the classifieds model with its new social marketplace, which also creates expanded buying and selling opportunities beyond those that exist today through conventional channels,” Greg Sterling, Senior Analyst Opus Research.

The platform eliminates the dread and perils of anonymous online transaction, which resulted in several fraud and safety issues in the past.  It utilizes Facebook users’ extended community–family, friends, neighbors and mutual friends– and shows user’s real identity. This means that most of your transactions will be made with people you know, or with people known to the people you know. A recent online study commissioned by Oodle and conducted by Harris Interactive, running through Dec. 7-9, 2010, shows that 69 percent of American adults prefer giving away items they don’t need to people they know rather than selling them online for profit, while 43 percent prefers selling items to people they know.

“It doesn’t make sense to invite an anonymous person over to your house to test drive your car,” said Craig Donato, CEO and founder of Oodle. “It should also be easy to give tickets or toys to someone in your extended community of friends. As the Internet becomes more social, who you’re buying and selling with is as important as what you’re buying and selling.”

Using Facebook Connect, the user’s identity is revealed in the listings they post. When a person responds to the posting using email, his real identity gets visible because the marketplace shows his Facebook profile page and how they are connected to each other, friends or friends of friends. Oodle prioritizes postings where a real name and face is revealed. It also allows users to limit their listings’ visibility to friends only. The commerce goes beyond buying and selling as it also offers giving, lending and borrowing. Users can also share what they’re looking for by creating a “want ad” that’s visible to friends.