Facebook Marketplace was introduced in October 2016 as an online space where users can buy and sell new and used products locally. The Facebook Marketplace is used in 50 countries to buy or sell products. This makes it a viable platform for marketers to boost conversions and sales of products.
- What is Facebook Marketplace?
- Advantages of using Facebook Marketplace for businesses
- What to sell on Facebook Marketplace
- How does Facebook Marketplace work?
- How to list products on Facebook Marketplace
- How to advertise on the Facebook Marketplace
- How to advertise a service on Facebook Marketplace
- How to maximize Facebook Marketplace ads for your business
- How to use Facebook Marketplace
- The Facebook Marketplace app
- 5 Tips for selling on Facebook Marketplace
- Final thoughts
In this guide, you’ll find all you need to know about Facebook Marketplace, as well as the leading tools to help capture leads and automate your lead data management process.
What is Facebook Marketplace?
Before the introduction of this feature, Facebook users bought and sold things on buy-and-sell Facebook groups. This feature was designed based on the same principle, but with the option to list items for sale, search items to buy, and mark items as sold. The Facebook Marketplace interface offers a complete shop-like feature that connects users directly with the product they want to buy or sell, much like a social Craigslist.
While Facebook does not facilitate sales transactions, it provides a place for sellers to advertise their products without getting involved in price and shipping processes between the buyer and seller.
With Facebook Marketplace, businesses can:
a. Display different retail items such as vehicles and homes.
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 who has things to sell, whether old or new. It’s also designed for e-commerce businesses, entrepreneurs, sellers, handmade artists, fashion businesses, real estate, etc.
This feature is similar to the Amazon and eBay marketplaces. But here, you don’t pay to list your products or services on Facebook. However, when a customer orders your product, you will pay 5% of the product price after shipping the item.
Advantages of using Facebook Marketplace for businesses
Facebook offers a great marketing potential with over 2.7 billion monthly users, out of which 1 billion are also active users of its Marketplace. This is an added advantage for small businesses since it provides access to a large global audience. Let’s go through some of the advantages of using Facebook Marketplace.
- Availability of different marketing tools
The Facebook Marketplace provides different tools for businesses on the platform. An example of this is the merchant selling feature. Businesses can also use marketing automation tools to create automatic replies to users’ inquiries or chatbots to provide answers to popular questions.
- Facilitating one-on-one sale to prospects
It allows businesses to sell to buyers directly and communicate with them on an one-on-one basis through Facebook Messenger. Prospective buyers can get in touch with you directly, and you can answer them in real-time. This helps you give them the needed product information before they lose interest. Also, it makes prospects feel comfortable and confident when making buying decisions.
- Accepting versatile payment methods
Facebook does not offer sales transaction services in the Marketplace. Therefore, businesses are free to use any payment method, such as PayPal, bank transfer, Shopify, and BigCommerce payment processors. Of course, you can also collect payments in cash, which is the best option.
- Allowing to list products for free and boosting sales
Facebook Marketplace is free for all businesses to use for listing and managing products. You can literally 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, link it directly with your Marketplace to further increase conversions.
What to sell on Facebook Marketplace
Not every product can be sold on the Marketplace. It’s crucial to know that the products or services are on the list of prohibited items when learning how to post on Facebook Marketplace as a business. Here are the items you cannot sell according to Facebook.
- Adult products
- Body parts and fluids
- Digital media and electronic devices
- Documents, currency, and financial instruments
- Hazardous goods and materials
- Human exploitation and sexual services
- Ingestible supplements
- Medical and healthcare products
- Prescription products, drugs, and drug paraphernalia
- Products with overtly sexualized positioning
- Recalled products
- Stolen goods
- Digital products and subscriptions
- Tobacco products and related paraphernalia
- Weapons, ammunition, and explosives
In short, you can sell any product that is not listed above, such as eCommerce products, automobiles, and houses. Users often search for deals and often want to pay for products with cash.
Now that you know what to sell and what not to sell, there are different categories you can use to list your products. Choosing the best categories makes it easy for people to find your product.
Facebook Marketplace categories
Another factor to consider when learning how to post on Facebook Marketplace as a business, is the listing categories. Businesses can list their product with precision to target the right audience. These categories include:
- Clothing & Accessories
- Home & Garden
- Home sales
How does Facebook Marketplace work?
Facebook Marketplace uses a simple concept to categorize products. Sellers can list their products for sale in their locations. When users search for products, the platform picks their information from their profiles to know where they are located. Next, it displays different items for sale in their locations. Then, the prospective buyer chooses the item they want to buy and contacts the seller through Facebook Messenger. The two parties agree on how to make payment and deliver the item at a specified location or through shipping. Find an example below.
An automobile dealer (EchoPark Automotive) listed their cars for sale on the Marketplace. A prospective buyer chose the vehicle he/she wanted (The 2013 Honda Fit Sport Hatchback) and arranged to meet with the dealer. A seamless process, isn’t it?
Facebook Messenger is a free service that makes it easy for businesses to carry out transactions without exchanging addresses or phone numbers.
Facebook Marketplace algorithm
Here is how the Facebook Marketplace algorithm works, according to the platform’s guidelines. “ For buyers, we use computer vision and similarity searches to recommend visually similar products (e.g., suggesting chairs that look similar to the one the buyer is viewing) and the option to have listings translated into their preferred language using machine translation.
For sellers, we have tools that simplify the process of creating product listings by auto suggesting the relevant category or pricing, as well as a tool that automatically enhances the lighting in images as they’re being uploaded.”
This implies that the algorithm works by showing buyers the products that look like what they have previously searched for or viewed on the platform. You can use this to your advantage by optimizing your products so they appear more in the Marketplace search engine. To do this, add tags and descriptions that people will use when searching for your products.
How to list products on Facebook Marketplace
As a business owner, you first need to have a personal or business Facebook account. If you don’t have one, you can create one. Otherwise, use your existing Facebook account for the marketplace. Then, list your products so that users can see it on the Marketplace, News Feed, and other relevant places on Facebook.
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 the 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. Here 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, 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 the Facebook Marketplace. 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 get more eyeballs on your products.
How to advertise on the Facebook Marketplace
For the advertisers who already know how to ads post on Facebook, this is quite an easy task. After signing in to your Facebook account, go to Marketplace, either by tapping the grid button, scrolling down and 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 users’ previous interactions.
Here’s the step-by-step guide about how to place an ad on Facebook Marketplace:
1. Go to the Ads 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 be to create awareness, consideration, or conversion for your product.
In this example, select the conversion 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, ad set targeting, and budget options much the same way as setting up any type of Facebook ads.
Once completed, click Next.
4. Select your Audience. At this point, you can use a new audience or an existing audience. Choose as appropriate.
4. 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 or Video, or Carousel, and Media.
Also, include a suitable headline, an appropriate description for your product, and a click-worthy call-to-action for the ad.
7. Create a message template. This is where you can encourage people to talk with you after they click on the ad. Here you can start a conversation, generate leads, or define a custom experience for users who interact with your ad.
10. 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.
11. Click Publish. Your ads will be in the review, and Facebook will approve them if they meet the regulation. 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 you’d like 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, here’s how do it:
- Go to the feed, and click on Marketplace.
- Find Sale in the left sidebar menu.
- Select Your Ads.
- Select the ad you’d like to edit.
- Click on Edit Ad.
- Edit the listing, and click Update once completed.
However, you can only make modifications to 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 requirement 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 less than 10 items.
Deleting Facebook Marketplace ads
Asking yourself, how to delete my Marketplace ad? It’s pretty straightforward. You just need to go to;
- The feed, and click on Marketplace.
- Find and select Sale in the left menu.
- Select Your Ads.
- Select the ad you’d like to delete.
- 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 advertise a service on Facebook Marketplace
Given the popularity of Facebook, you can get great results by listing your product retouching services or selling your products on its Marketplace. We discussed how to post product ads on Facebook Marketplace as a business. Now, let’s have a look at how to post a service on Facebook Marketplace.
But first, you need to consider a few factors to ensure that you comply with the Facebook Commerce Policy. Your services should not fall under the prohibited section on the Facebook Commerce Policy page, so take a moment to look through it now.
Then, you just have to follow the simple steps mentioned above to post your services on Facebook Marketplace.
Running Facebook Marketplace real estate campaigns
Facebook’s Marketplace offers services that are specific to home and apartment listings. The platform provides a medium where users can put their own property listings to connect the owner and the renter (or buyer). Besides real estate agents, individual property owners can use Facebook Marketplace real estate ads.
However, you must use the Apartment Lists provided by Facebook partners, or Zumper, to list these properties on Marketplace to pull in listings. In practice, these partners collaborate with brokers, agents, and other property managers to fill out the housing section.
According to statistics, 74% of people read between one and 10 reviews before deciding on their rental property. This shows the compatibility of Facebook for running real estate apps.
In this extension, users can select options to list a house for sale or rent, add photos, fill out the listing details, and determine if the listing appears on their page only or on other buy-and-sell groups on Facebook.
For inspiration, check out these 20 successful real estate Facebook ad examples.
How to maximize Facebook Marketplace ads for your business
So after learning how to place an ad on Facebook Marketplace, it’s time to optimize it for the best performance. Creating an ad for your products on Marketplace does not always guarantee success, but you can maximize your ad ROI, mostly by using the two recommended strategies below.
1. Integrate your Facebook marketplace ads with your favorite CRM or Autoresponders
Discover all the possible Marketplace integrations you can use for your business below.
Creating these data bridges will help you funnel your leads directly to your CRM or autoresponder, where you can quickly communicate with them before they turn cold.
2. Create Facebook Custom Audience and Lookalike Audience 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, you can 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 that share similar traits with your prospects and customers. These listings help you to get the highest conversion rates from your ads. Read a detailed blog post on the Facebook Lookalike Audience to know how it works.
How to use Facebook Marketplace
Facebook Marketplace is a great platform for businesses to find new customers and build lasting relationships. There are different ways to use this feature as a business, including:
1. Getting to know the popular products that sell
All products are different and perform differently on various platforms. For instance, a product that sells on Shopify may not do well on Facebook Marketplace. So the best approach is to research the products that sell well on Facebook beforehand. To get these insights, visit other product sellers in your niche and check out their product categories. Top selling products are at the top of the page and are called “Top Picks”.
Once you discover a selling product that is similar to what you want to sell, create ads for it to expand its reach on the platform and make it sell faster.
The second way to discover popular products that sell on Facebook is by going to 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’s Facebook Page.
One of the most popular products in the shop is pinned at the top so that more people will see and buy it. If you are selling watches, it gives you an idea that the Apple Watch sells more. You can create a listing and probably create an ad for it.
2. Testing the performance of new campaigns and products
Do you plan on launching a new product for your business? Facebook Marketplace is an excellent platform to test out new products by targeting the best audience. 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 prices.
3. Boosting discoverability and awareness
Facebook Marketplace is a great place for users to discover products. When people are aware of your products, they are more likely to purchase them. To increase your visibility, use the right categories. There are up to 11 categories which are divided into subcategories.
Placing your products in the right category will help you attract the right audience. You can also boost product discovery by creating excellent descriptions for your products.
4. Building trust with your audience
Once your audience can discover your products, it is time to build trust with them. Fortunately, Facebook Marketplace has tools that help to foster trust with prospects, such as the Messenger tool, which was originally designed as a messaging app.
But today, it offers much more. Among its many features are sharing photos & videos, stories, location, and connecting with businesses. Use the Messenger tool to create one-on-one dialogues with your prospect. Did you know that Facebook Messenger messages have an open rate of 50-80%?
Additionally, the store page also allows you to answer questions and provide more relevant information about your products.
The Facebook Marketplace app
The Facebook Marketplace app makes it easy for businesses to sell their products and buyers to make purchases. Sellers can upload their products directly through the Marketplace app. The product is visible to buyers who search for the item through the search box or check categories for the product they want to buy.
The app is available on iPhone, Android Phones, iPad, and computers. You can find it on the Facebook app at the bottom of the Facebook page on the computer, or at the top of your iOS and Android device. Look for an icon that looks like this;
By clicking on the icon, you are redirected to the Facebook Marketplace page where you can upload products to sell.
5 Tips for selling on Facebook Marketplace
1. Know what product you can sell on Facebook Marketplace
As you read above, not all products are allowed for listing in the marketplace. Items such as alcohol, drugs, weapons, animals, counterfeits, Tobacco, and get-rich-quick schemes are prohibited. Read the full list of prohibited items here. Your Facebook account could be blocked if you list prohibited items mentioned in the platform’s guideline.
Items that sell well in this space include refurbished or newly painted furniture, toys, maternity clothes, cabinets, shoes, bags, etc.
2. Use high-quality photos to show the product from different angles
Uploading a clear picture of the product is very important, when it comes to online sales. Users need to see how the product looks in real life before making a purchase decision. Using stock photos to represent your product is considered fraudulent and you should avoid doing so.
You need not be a professional photographer to take pictures of your product. All you need is a good smartphone. Make sure to show all the details of your products, including the defects and the warranty information. Take the pictures on a white or black background to bring your product into focus.
Use sufficient lighting and take at least three different photos from various angles that show close and complete shots of the product. Providing clarity will show the buyer you are honest and they’ll be more willing to do business with you.
3. Set the right price for your products
Research your product on other marketplaces such as eBay to know the pricing of similar offerings by popular vendors. This will give you an idea of the right price to sell your product and readily prevents overpricing and underpricing of products.
You can also check for similar items on local Facebook groups or the Facebook Marketplace itself to see the prices of items similar to what you want to sell. When setting the price for your items, set the price just a bit higher to leave room for bargains. When people often request discounts and will literally arrive at the actual price of the product, while feeling satisfied that they have gotten the right bargain for the product. Another advantage is that your buyers may not even haggle and pay the full price directly. With this, you make more money than what you aimed for.
After setting the price, ensure you describe exactly what the product looks like. This includes both the defects and the good sides. The description should be around 50 to 60 words. Find an example of a great marketplace product description below.
The next thing is to sell the product.
4. Complete the deal through the Facebook messenger
Once a prospect indicates their interest to buy your product, check their Facebook profile to know more about them. If you feel comfortable with the sale, then proceed; if not, decline it.
You should complete the deal through the Facebook messenger. Here, discuss details of the product such as the price, condition, delivery details, payment methods, etc. Also, you must ensure to deliver the product directly to the buyer. You could meet in public places and not in private spaces such as your home. This could be the grocery store, gas stations, police stations, or your office. If you cannot deliver the products, you could ship them through USPS or other reliable delivery services.
For the shipping option, you may need to add the shipping price to the product price to avoid running at a loss. If you wish to allow buyers to come into your home to pick up the product, ensure you are not alone at home. If possible, deliver the product to the doorstep and keep a mobile phone with you. All these precautions are important to make sure you are always safe.
5. Take cash to prevent scam
The best payment method for products on the Facebook Marketplace is cash. It is safer than using PayPal transactions, cheques, or bank transfers.
If you disclose your banking details to prospects, they can use it for fraudulent purposes. Cheques can also bounce. If you accept payment through Paypal, they can use fake emails for your payment. They can also use chargeback to claim that they did not authorize the transaction or reverse the transaction.
Facebook Marketplace is great for businesses that want to sell their products. Its massive audience makes it a place where you can find lots of people to sell to. It’s free to set up and easy to use. The feature also offers specialized ads to help increase sales by exposing your product to more people on the Marketplace.
You can also integrate the Marketplace with your favorite marketing tools, such as CRMs and Autoresponders. This practice reduces friction in the process of getting leads, nurturing them, and turning them into paying customers who will patronize your business repeatedly.
LeadsBridge offers an array of integrations to streamline your Facebook Marketplace ads’ data transfer management processes. Discover all the possible Facebook Marketplace ads integrations here.