How to sell on Facebook Marketplace: A guide for businesses

As one of the most popular social media platforms in the world, Facebook is relied on by small business owners to promote their brands and keep customers engaged. Thanks to Facebook Marketplace, businesses can also easily sell their products directly to customers.

Even if you already have an e-commerce store or sell on other online marketplaces, selling on Facebook Marketplace is an opportunity you should explore.

Let's look at why your business should have a presence on this platform, along with some tips for selling on Facebook Marketplace.

Why is Facebook Marketplace beneficial for businesses?

Facebook Marketplace was designed to help people on Facebook sell products to each other. As the platform became more popular, Facebook added additional features that made it easy for businesses to use Facebook Marketplace as an online sales channel, too.

Today, Facebook Marketplace for businesses is an ideal channel for attracting customers on Facebook who may not find your e-commerce site or may not know to look for your products in-store. As a result, you can potentially create a new revenue channel with relatively little effort, while at the same time maximizing the investment you've already made in growing your brand on Facebook.

That said, one of the advantages of online marketplaces and channels is they give you broad access to massive customer bases. Facebook Marketplace is already one of the most popular places people go shopping, with 63.5 million people making at least one purchase through Facebook in 2022. ¹ By using Facebook Marketplace, you can connect with customers where many of them already spend a significant amount of their online time.

Sell on Facebook Marketplace as a business

Selling on Facebook Marketplace can be a core component of an omnichannel sales strategy that helps enable customers to buy from your brand according to their preferences.

The more channels you can leverage, the more likely you'll be able to meet your revenue goals.

How to sell on Facebook Marketplace

Below are simple steps to take before you can start selling on Facebook Marketplace:

1. Check that your business is eligible to list on Marketplace. Marketplace is only available to businesses located in the United States. In addition, some products are prohibited from being sold on Facebook, such as alcohol, adult products, and healthcare products.
2. Create a Facebook Business page for your business. Once that is set up, log into the Commerce Manager to either create a shop or a catalog. A shop is used to sell physical goods, while a catalog is used for items like hotels, flights, destinations, vehicles, or home listings.
3. Connect to Marketplace. Once you create a shop or catalog, you can connect your account to Marketplace to sell products there. To sell your products on Marketplace, in Commerce Manager, go to Settings > Business Assets > Sales Channels and connect Marketplace to your account.

You can adjust various settings in Commerce Manager, including:

• Checkout. You can decide if you want to allow checkout through Facebook, through messaging via Messenger or WhatsApp, or if you want to redirect users to your website.
• Product syncing. If you already sell online through platforms like Shopify or BigCommerce, you can sync your Facebook shop with the platform to import and sync products.
• Shipping and returns. Determine your shipping options, customer service information, and return policy.
• Add items. Once your shop is set up, you add items to your catalog by either manually adding in content or syncing it through a product data feed.

What are the benefits of selling on Facebook Marketplace?

With Facebook Marketplace, you can:

• Sell the way you want. You can list a single product, only your bestsellers, or create an entire online storefront that includes all your products.
• Increase your brand visibility. Listing on Marketplace helps you attract customers looking for products like yours when they are on Facebook.
• Increase customer engagement. Customers can message your business through Facebook Messenger, allowing them to ask questions and build trust in your brand.

Tips for selling on Facebook Marketplace

If you already sell online, then many of the same tips and strategies you use on other platforms apply to Marketplace. Here is a checklist for sales success:

• Create a descriptive and accurate headline for your product.
• Use keywords in your content to show up in search.
• Make sure your product description includes high-quality content and product dimensions, so customers know exactly what they're getting.
• Add quality photos of your product from every angle.
• Compare your product pricing to others offered on Marketplace and other platforms to ensure your pricing is competitive.
• Respond quickly to customer questions or customer support requests that come through Messenger or WhatsApp.
• Utilize Facebook's ad platform to expand your reach and find new customers.

How much does it cost to sell on Facebook Marketplace

Listing products on Marketplace is free, giving you a low-cost way to increase your ecommerce exposure. You'll only have to pay a fee once a product sells. Check the selling fees page for the most up-to-date information.

How to advertise on Facebook Marketplace

Setting up a Marketplace ad campaign on Facebook involves leveraging Facebook's Ads Manager.

Here are the general steps to set up a Marketplace ad campaign on Facebook:

• Log in to Facebook Ads Manager. Click on the Create button to start a new ad campaign. Facebook will prompt you to choose an objective for your campaign. Select an objective that aligns with your goal, such as 'Traffic', 'Conversions', 'Lead Generation', etc. Not all objectives may be compatible with Marketplace as a placement.
• Set up your ad account. If you haven't already set up an ad account, you'll be prompted to do so. This involves specifying your account country, currency, and time zone.
• Define your audience. Next, define the audience for your ads. Tailoring your audience ensures that your ads are shown to the people most likely to be interested.
• Choose your placements. In the Placements section, you can choose where your ads will appear. To specifically target Facebook Marketplace, select 'Manual Placements' and then choose 'Marketplace' among the options. You can also select additional placements (like the News Feed or Instagram) to broaden your ad's reach.
• Set budget and schedule. Decide on your daily or lifetime budget for the campaign and schedule when you want your ads to start and end.
• Create your ad. Choose the format (single image, video, carousel, etc.), upload your creative assets (images or videos), and write ad copy (headline, text, call to action).
• Launch. Review all settings to ensure everything is correct. Then click the ‘Publish’ button to launch your campaign.

How to get paid on Facebook Marketplace

When selling on Facebook Marketplace, there are several payment methods you can use to receive money from buyers. It's important to choose a method that balances convenience with security.

Here are some common options:

• Cash. Simple and immediate, cash is often used for local transactions. While cash transactions don't involve processing fees, they require in-person meetings, which can be a safety concern for some.
• Payment processors. Services like PayPal allow for quick and secure payments. These platforms often offer buyer and seller protection on eligible sales ² and purchases ³, which can make them safe options.
• Facebook Checkout. For items that can be shipped, Facebook offers a checkout feature directly within the Marketplace for eligible items. Payments are processed through Facebook, and this method offers a layer of protection for both parties involved in the transaction.

Looking to learn more about selling on social media? Learn how to set up Instagram Shopping. Plus, discover new innovations that are revolutionizing the commerce experience.