The complete guide to Facebook Marketplace for your business

The worldwide presence of Facebook from Meta as a commercial platform has made it the go-to platform for marketers. With most of them wanting to boost their brands’ conversions and sales.

Do you know how to get the most out of the notorious Facebook Marketplace?

In this guide, we’ll discuss Facebook Marketplace and all the leading tools you need to capture leads and manage your lead data in the best way possible. Tools like:

What is Facebook Marketplace?

The Facebook Marketplace interface offers a complete shop-like feature that connects users directly with the product they want to buy or sell.

With Facebook Marketplace, businesses can:

a) Display different retail items.

b) Advertise store items on the Marketplace to sell more products.

c) Show new or used items from the Facebook page shop for free.

Who can sell on Facebook Marketplace?

Facebook Marketplace is for everyone with things to sell, whether old or new. It’s also designed for different businesses: e-commerce companies, entrepreneurs, sellers, artisans, fashion firms, real estate agencies, etc.

Its features are similar to those of the Amazon and eBay marketplaces. But here, advertisers don’t pay to list their products or services on Facebook. There is no listing fee. 

Effective April 15, 2024, Facebook increased its selling fee on shipped orders from 5% (or $0.40 minimum) to 10% of the total sale (including shipping and taxes), with a minimum fee of $0.80 per shipment. 

Facebook deducts the fee before shipping cost and then sends the net amount directly to your linked bank account. All shipped orders are also handled via Marketplace Checkout.

Advantages of using Facebook Marketplace for businesses

Let’s go through some of the advantages of using Facebook Marketplace.

Offers different marketing tools

Facebook Marketplace provides a unique set of tools that advertisers can use to incorporate personalization, optimize for mobile, and create impactful ad campaigns. You can also embed Facebook Marketplace ratings on websites and use them efficiently as an advertising tool for your business.

Businesses can also use marketing automation tools to create automatic replies to users’ inquiries or streamline communication based on their CRM segments.

However, you’ll need a third-party integrator like LeadsBridge to connect the two platforms. 

Facilitates one-on-one sales to prospects

It allows businesses to sell to buyers directly and communicate with them on a one-on-one basis through Facebook Messenger. Prospective buyers can contact you directly, and you can answer them in real time. This helps you give them the needed product information before they lose interest.

Accepts versatile payment methods

Facebook does not offer sales transaction services in the Marketplace. Businesses can use any payment method, such as PayPal, bank transfer, Shopify, and BigCommerce payment processors. 

List products for free

Facebook Marketplace is free for all businesses to use for listing and managing products. You can list your products in minutes and start selling, which helps you streamline the conversion funnel and boost sales.

If you already have a Facebook shop, it lets you link it directly with your Marketplace and get more conversions.

For shipped listings, you must use Marketplace Checkout (Meta Pay). Alternative methods are only allowed for local pickup, where Meta protection does not apply.

What to sell on Facebook Marketplace

Wondering how to post on Facebook Marketplace as a business? Start with what is permitted and what is not! 

Here are the items you cannot sell, according to Meta.

• Adult products or services
• Alcohol and tobacco products or paraphernalia
• Illegal, prescription, or recreational drugs (and drug paraphernalia)
• Weapons, ammunition, and explosives
• Live animals or animal parts
• Hazardous materials (e.g., chemicals, fireworks)
• Body parts, bodily fluids, or human remains
• Stolen, counterfeit, or recalled products
• Digital goods, subscriptions, or virtual items
• Financial instruments (e.g., currency, gift cards, credit services)
• Gambling products or promotions
• Jobs, internships, or “get-rich-quick” opportunities
• Medical devices, ingestible supplements, or healthcare claims
• Services (intangible or non-physical offerings)
• Items with misleading, false, or exaggerated claims
• Content related to human exploitation or trafficking
• Products with overtly sexualized positioning
• Anything that violates Meta’s community or intellectual property policies

So what can you sell on Marketplace?

Facebook Marketplace allows individuals and businesses to sell physical, non-restricted items such as clothing, furniture, electronics, baby items, home décor, automotive parts, garden tools, musical instruments, fitness gear, and more. 

Listings should be placed in the most relevant category like “Home Goods,” “Fashion,” or “Electronics”. Always include clear product images, descriptions, and pricing to help buyers make informed decisions.

Facebook Marketplace categories

When posting on Facebook Marketplace as a business, the listing categories greatly affect your conversion rates. Marketplace organizes listings into different categories and subcategories. You can also use filters that fit each category, like choosing a “vehicle type” when you’re in the “vehicles” section.

1. Antiques & collectibles
2. Arts & Crafts
3. Auto Parts
4. Baby
5. Books, Movies, & Music
6. Electronics
7. Furniture
8. Garage Sale
9. Health & Beauty
10. Home & Kitchen
11. Home Improvement
12. Housing for Sale
13. Jewelry & Watches
14. Kidswear & Baby
15. Luggage & Bags
16. Menswear
17. Miscellaneous
18. Musical Instruments
19. Patio & Garden
20. Pet Supplies
21. Rentals
22. Sporting Goods
23. Toys & Games
24. Vehicles
25. Womenswear

How does Facebook Marketplace work?

Facebook Marketplace simplifies product categorization. Sellers list items in their location. When users search, the algorithm uses their profiles to determine their location. 

Then, it presents them with items related to their search query that are available in the vicinity. Buyers take a pick, contact sellers on Messenger, and agree on payment and delivery. 

Take EchoPark Automotive as an example. They listed their cars for sale on the Marketplace. A prospective buyer chose the vehicle they wanted and arranged to meet with the dealer. 

Convenient, isn’t it?

That’s what Facebook Messenger aims for. Offering a free service that makes it easy for businesses to carry out transactions without exchanging addresses or phone numbers.

Discover more about how to advertise your car dealership on Facebook.

Facebook Marketplace algorithm

Here’s a quick overview of how Facebook Marketplace’s algorithm works:

• For buyers, it suggests visually similar items using computer vision (Meta’s AI used to analyze and recognize visual elements in images). Listings can also be translated into the buyer’s preferred language.
• Sellers receive tools for easier listing creation, including auto-suggestions for categories and pricing. There are other tools as well. For instance, an in-app image enhancement tool helps improve uploaded pictures.

Ideally, the algorithm displays products similar to what buyers have searched or viewed. As an advertiser, it’s your job to make sure to optimize your listings with relevant tags and search-friendly descriptions.

Facebook Marketplace’s new changes and updates in 2025

The economy is dynamic, and so is Facebook Marketplace. Here are some of the latest updates to keep up with: 

• How Facebook Marketplace works now

Buyers must contact sellers directly, and all purchases happen off-platform. However, shipped orders still use Marketplace Checkout, carry a 10% + 2.9% card-processing fee (min $0.80), and include Meta Purchase Protection. 

• Listing rules & ads

Listing is free, but sellers can pay to boost visibility. Sellers must follow local laws and Meta’s policies or risk removal.

• Buyer protection

There’s little protection when buying from individuals. Returns or refunds depend entirely on the seller’s terms.

• eBay listings on Marketplace (still limited) 

As of Jan 2025, select eBay items appear on Facebook Marketplace in the U.S., Germany, and France. Sales happen on eBay, under eBay’s rules.

• Shipping label changes

Since February 24, 2025, sellers must provide their own shipping labels. Meta no longer offers prepaid shipping. 

Note that existing listings with prepaid labels keep them; the change only affects new shipped listings. Also, pre-paid USPS/UPS labels are no longer issued for new listings created after Feb 24 2025.

• New selling fees

From April 15, 2024, shipped listings have a 10% selling fee plus a 2.9% processing fee (unless using Shopify).

• AI summary problems

eBay’s AI sometimes adds incorrect details to listings. This could lead to disputes or returns for sellers.

• Persistent EU regulatory pressure

Meta faces possible fines under the EU’s Digital Markets Act. Its “pay-or-consent” ad model is under scrutiny.

• More marketplace partners

In June 2025, Poshmark joined Marketplace as a new partner. Like eBay, listings are visible without extra fees. This is opt-in for U.S. Poshmark sellers and only shows fashion categories for now.

How to set up a Facebook Marketplace account

Setting up a Facebook Marketplace account is relatively straightforward. First, you need to have an active Facebook account. 

If you are a business owner, you are required to have a personal or business Facebook account. If you don’t have an account, go ahead and create one. From there, follow these step-by-step instructions:

1. Log in to your Facebook account and click on the “Marketplace” icon in the left-hand column.
2. If prompted, confirm your location and then click on “Continue.”
3. Review and agree to the Marketplace terms of service.
4. Set up your Marketplace profile by adding a profile picture, cover photo, and description. Adding a profile picture and cover photo is recommended to make your account more personalized.
5. If you plan to sell items, click the “Sell Something” button and follow the prompts to create a new listing.
6. If you want to buy items, use the search bar to browse available listings or filter results by category, location, or price.
7. When you find something you’re interested in, click on the listing to view more details and contact the seller.

Once completed, you can continue browsing and posting items for sale, and even join local buying and selling groups. The platform’s user-friendly UI makes it easy for anyone to start buying and selling on Facebook Marketplace. 

Pro tip: Use a VPN service to encrypt your network when logging into your marketplace account to protect your data and prevent cyber hackers. This is important, especially if you often manage your Facebook Marketplace listings from different locations or public Wi-Fi networks.

Looking for more tips? Here’s a list of 10 actionable strategies for selling more on Facebook Marketplace.

How to list products on Facebook Marketplace

Always list your products so that users can see them on the Marketplace, News Feed, and other relevant places on Facebook. Your Marketplace product listing must follow these instructions. 

Also, you need to read the Facebook Community Standards. Then, follow this step-by-step process to list your products.

1. On the News Feed, click on Marketplace.

2. Click on Create a new listing from the menu under Marketplace.

3. Select the product you want to list from the three options provided, i.e., Items for sale, Vehicles for sale, and Homes for rent. For the sake of this example, we’ll use the “item for sale” option.

4. On the next page, select your product category, fill in what you want to sell, set the price and location, and provide a product description. You can also add up to 10 product images.

Click Next to proceed.

5. Click on Publish to publish the listing in the Marketplace. Remember that you have the option of listing your product in more than one place.

Congratulations! Your products are now listed on Facebook Marketplace. And it’s time to sell them. You can access your store through the shop tab on your Facebook business page.

Listing your products will make them accessible to prospective buyers, making it possible to get sales. However, using Facebook ads can speed up the process and fetch more eyeballs on your products.

How to add tags on Facebook Marketplace listings

So, how to post on Facebook Marketplace as a business and get more views? It’s easy. 

Adding tags to your items helps increase your items’ visibility, making it easier for interested buyers to find them. Descriptive and relevant tags on your listings can attract more views and potentially increase the likelihood of sales. 

Also, it can help you organize and categorize your listings so you can manage and track your inventory efficiently.

To add tags on Facebook Marketplace, follow these simple steps:

• Click on “Create New Listing” on your Facebook Marketplace homepage.
• Type in the details of the item you are selling, such as title, description, and price.
• Scroll down to the “Add Tags” section and click on the box.
• Add relevant keywords or phrases that describe your item. Facebook will suggest some popular tags as you type.
• Click on “Add” to incorporate the tag in your listing.
• You can add up to three tags per item on Facebook Marketplace.

Use relevant keywords that accurately describe your item. This helps attract the right audience and improve your sales chances.

Some sellers have reported that the tag field has been missing for them since late 2024. Apparently, the limit and availability vary by account type and region.

How to sell on Facebook Marketplace as a business

Ready to hit the target with Facebook Marketplace? You’ve got three ways to go about it.

Option 1: Display your offerings

To sell on Facebook Marketplace as a business, first, you need to reach your audience. Whether you’re an expert or just getting started, listing your items on Facebook Marketplace is easy. Here’s how to do it:

1. First, log in to your account and navigate to Marketplace. 

2. Find and click the “Create New Listing” button on the left menu. It’s your gateway to the Marketplace sales.

3. Then, it’s time to pick your listing type, which you can choose based on your products.

4. Showcase your item by uploading up to 10 high-quality pictures. Remember, good pics work like a magnet for buyers!

5. Next, add a catchy title, the price that’ll make everyone happy, and all other important details like category, condition, and a description that’ll make your items irresistible.

6. Adding your approximate location is helpful for both the Marketplace algorithm and your potential buyers.

Option 2: Set up your Facebook page shop

Want to get your shop up and running on Facebook and Instagram?

If you’re new to the whole Facebook business page and catalog thing, don’t worry – you can set those up as you create your shop. 

And if you already have an existing page and catalog, here’s what you need:

• For business account managers, you need full control of the account and account management permissions for the page and catalog. 
• For Instagram, you must have an Instagram business account linked up. Remember, your business account should own that Instagram business account.

Note: If you’ve decided to sell only on Instagram, you don’t need a Facebook business page for this setup.

Setting up your shop: 

1. Navigate to the “Create your shop” page and click “Next.”

2. If you’re already a seller on Shopify, BigCommerce, or another partner platform, you can directly sync your product lists here. 

If you’re not using a partner platform, click ‘I don’t use these platforms’. Otherwise, select your platform to continue the setup.

3. Select your location and click “Next.”

4. Then, select your page or create a new one. For Instagram, select your Instagram business account. Click “Next.”

5. Then, add the delivery destination and choose the catalog you want for your shop. Make sure it meets the catalog eligibility requirements. Remember, you won’t be able to change this.

No catalog yet? Facebook automatically creates one named “Items for (your page’s name and ID)” in the Commerce Manager. You can add your products later.

Review your shop details, give the Seller Agreement a thumbs-up, and hit “Finish setup”. And voilà, your shop is ready! 

Now, you can manage your catalog by adding products, creating collections, customizing your shop’s look and feel, and getting ready to sell.

Option 3: Sell as a business

This option is only available to a select group of sellers. Facebook has been rolling this out since 2022.

Instead of connecting Marketplace to your personal account or Shop, you’ll be strutting your stuff on Marketplace as your business. It’s like giving your business its own special spotlight.

How to advertise on Facebook Marketplace

Where can you get started with advertising on Facebook Marketplace?

Start by signing in to your Facebook account. Then, navigate to Marketplace, either by tapping the grid button, scrolling down, or clicking Marketplace. You can also do this by clicking the Marketplace button directly.

While scrolling down the Marketplace page, you can see all the organic listings suggested by the platform, alongside a few sponsored ads.

The sponsored Facebook Marketplace ads are designed to target the right audience mostly based on location and the user’s previous interactions.

Here’s the step-by-step guide on how to place an ad on Facebook Marketplace:

1. Go to the Business Manager on the ad account you want to use to run your campaigns. 

2. Select your Campaign Objective according to your ad’s target goal. This can create awareness, consideration, or conversion for your product. 

In this example, select the “Leads” objective and click Continue. These configurations help display ads to people who are most likely to buy.

3. The next step is to set your campaign settings, and ad set targeting, much the same way as setting up any type of Facebook ads. 

Once completed, scroll down to fill in the rest of the information, such as the budget options.

4. Select your Audience. You can use a new audience or an existing audience. Choose as appropriate.

5. On the ad set screen, find Placements by scrolling down. You’ll have to uncheck all the boxes except for Facebook Newsfeed and Facebook Marketplace and click Next.

6. Here, ensure your Facebook page is selected first. Then, choose your ad creatives. Start by selecting the Ad formats: Single Image, Carousel, or Video.

Also, include a suitable headline, an appropriate product description, a click-worthy call-to-action for the ad, as well as the Media.

7. Create a message template. This is where you can encourage people to talk with you after they click on the ad. This allows you to start a conversation, generate leads, or define a custom experience for users who interact with your ad.

8. Select the conversion tracking, i.e., the Facebook Pixel or app events.

While creating your ad, pay attention to the window screen on the right, where you can see what your ad will look like in the Marketplace placement vs. the newsfeed. 

Click the three dots on the right and select Expand to further see how your ad will appear on the:

• mobile Marketplace feed,
• desktop Marketplace feed, and
• desktop Marketplace details page. 

You can modify and edit your ad accordingly.

9. Click Publish. Your ads will be in the review, and Facebook will approve them if they meet the regulations. After that, people will see your ads as they browse the Marketplace.

Below is an example of a Facebook Marketplace ad.

How do I see my listings on Facebook Marketplace?

Once logged in, click on the Facebook logo at the top-left of your Home Page or any other page. Then, find and click on Marketplace. On the leftmost sidebar, you’ll find Your account; click on it to see Your Listings. 

Remember that managing your listings is an ongoing task and requires your attention, such as removing duplicate listings, adding new data, etc.

Editing your Facebook Marketplace ad

You might no longer be interested in running a campaign or wanting to make some modifications to your ad. Here’s how you can manage your Marketplace ads.

Modifying the details of the Facebook Marketplace ad

To edit a Marketplace listing for ads related to a single product, or multiple items, then:

1. Go to the feed, and click on Marketplace.
2. Find Sale in the left sidebar menu.
3. Select Your Ads.
4. Select the ad you’d like to edit.
5. Click on Edit Ad.
6. Edit the listing, and click Update once completed.

However, you can only modify available items and products that have not been getting sales. If your ad is waiting to be approved, an order related to the ad is pending, or the ad has generated labels, or yielded a sale, they cannot be modified. 

Also, there’s no need to edit your ad to ensure the number of items appear in a multi-item ad. The ad automatically displays the number of items available if there are fewer than 10 items.

Deleting Facebook Marketplace ads

Asking yourself, how to delete my Marketplace ad? All you have to do is:

1. Go to the feed, and click on Marketplace.
2. Find and select Sale in the left menu.
3. Select Your Ads.
4. Select the ad you’d like to delete.
5. Click on Delete. Then, you are shown another window. This is to ensure your ads don’t get deleted accidentally. Click Delete again to remove your ad permanently.

How to better use Facebook Marketplace

There are different ways to get even more out of this feature as a business:

Get to know popular products that sell

Products change in performance across platforms. It’s best to research Facebook’s top-selling products by exploring similar sellers and their “Top Picks” (a.k.a. Today’s Picks) section.

Once you discover a similar product that you want to sell, create ads for it to expand its reach on the platform and increase sales.

The second way to discover popular products that sell on Facebook is by visiting business pages similar to yours. The top-performing items are always listed at the top of the page. 

Check out the example below from the Electronic Gadgets’ Facebook Page.

One of the most popular products in the shop is pinned at the top to increase visibility and sales. If you are selling watches, it suggests that the Apple Watch sells more.

Test the performance of new campaigns and products

Do you plan on launching a new product for your business?

Facebook helps you know the products your audience prefers to buy. All you need to do is create a listing, and Facebook will take care of the rest. 

In addition, you can perform test runs to know the best price to sell your product by using discounts and increasing the costs.

Boost discoverability and awareness

When people are aware of your products, they are more likely to purchase them. That’s why using the right categories is important. There are up to 11 categories, which are divided into subcategories.

Learn more about ways you can boost your Facebook Marketplace account. 

Build trust with your audience

Facebook Marketplace has tools that help to foster trust with prospects, such as the Messenger tool, which was originally designed as a messaging app.

Among Messenger’s many features are sharing photos & videos, stories, location, and connecting with businesses. Use it to create one-on-one dialogues with your prospect. 

Did you know that Facebook Messenger messages could deliver open rates as high as 88%? On top of that, the store page allows you to answer questions and provide more relevant information about your products.

Use Facebook Marketplace Insights

Facebook Marketplace Insights is a tool that delivers data and analytics to help sellers track their performance on the platform. 

This data gives you a better understanding of your: 

• Audience preferences
• Targeting angle
• Demographics responses
• Listings optimization

How to maximize Facebook Marketplace ads for your business

Creating an ad for your products on Marketplace does not always guarantee success, but you can maximize your ad ROI. 

Here are two strategies you can use to get better performance out of your ads:

1. Integrate your Facebook marketplace ads with your favorite CRM or Autoresponders

First, integrate Facebook Marketplace ads with different CRM, autoresponders, and emails through LeadsBridge. Here are some of our most popular Marketplace integrations:

These data bridges help you funnel your leads directly to your CRM or autoresponder, where you can quickly communicate with them.

2. Create custom audiences and Lookalike Audiences for precise targeting

The second way to maximize your ROI is to create a Facebook custom audience from your customers’ list on your CRM or autoresponder through LeadsBridge. This way, you can enhance your audience targeting on Facebook Marketplace.

From there, create a custom audience and a lookalike audience to target users who have an interest in your product, have purchased from your store before, or follow your Facebook page.

The lookalike audience list includes a set of people who share similar traits with your prospects and customers. These listings help you get the highest conversion rates from your ads. 

Read a detailed blog post on the Facebook lookalike audience to know how it works.

Changes to Meta Shops

Meta is phasing out native Checkout on Facebook and Instagram for U.S. sellers. Shops’ native Checkout is being sunset in the U.S. by August 2025, but Marketplace checkout for shipped items is still active.

Here’s what has changed:

• Native Checkout removed: Meta is ending in-app Checkout for U.S. Shops.
• External Checkout required: Shoppers will now be redirected to your website to complete purchases.
• Deprecated features: Order management, returns, and reviews tied to native Checkout will no longer be supported.
• International markets: Shops in select non-U.S. countries may continue using in-app features for now.
• Product discovery still supported: You can still use product tags, ads, and catalog listings to drive traffic.

Final thoughts

Facebook Marketplace offers reach to a massive audience. It’s free to set up and easy to use, with a ton of useful features. 

To increase your performance, you can integrate the Marketplace with your favorite marketing tools, such as CRMs and Autoresponders. That’s where LeadsBridge comes in. With an array of integrations, LeadsBridge helps you streamline your Facebook Marketplace ads’ data transfer management processes.

Discover all the possible Facebook Marketplace ad integrations here.