The complete guide to Facebook Marketplace for your business

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.

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 for 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’ll have to pay 5% of the product price after shipping the item. 

Advantages of using Facebook Marketplace for businesses

Facebook offers great marketing potential with over 2.9 billion monthly users, out of which 800 million are monthly active users on 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 a 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 can 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 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.

1. Adult products
2. Alcohol
3. Animals
4. Body parts and fluids
5. Digital media and electronic devices
6. Documents, currency, and financial instruments
7. Gambling
8. Hazardous goods and materials
9. Human exploitation and sexual services
10. Ingestible supplements
11. Jobs
12. Medical and healthcare products
13. Prescription products, drugs, and drug paraphernalia
14. Products with overtly sexualized positioning
15. Recalled products
16. Services
17. Stolen goods
18. Digital products and subscriptions
19. Tobacco products and related paraphernalia
20. 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 retouching with precision to target the right audience. These categories include:

1. Deals
2. Clothing & Accessories
3. Classifieds
4. Electronic
5. Entertainment
6. Family
7. Hobbies
8. Housing
9. Home & Garden
10. Vehicles
11. 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.
Discover more about  how to advertise your car dealership on Facebook.

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 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, consider Facebook Marketplace tags and add descriptions that people will use when searching for your products.

Wondering how to get more views on Facebook Marketplace? Adding tags to your items could help. It increases your items’ visibility, making it easier for interested buyers to find them. Adding descriptive and relevant tags to your listings can attract more views and potentially increase the likelihood of a sale. Also, using tags can help you organize and categorize your listings, making it easier to manage and track your inventory.

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

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

Pro tip: Use relevant keywords that accurately describe your item to attract the right audience and improve your chances of making a sale.

How to set up a Facebook Marketplace account

Setting up a Facebook Marketplace account is rather straightforward. To get started, you’ll need to have an active Facebook account. 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.
Then, you can navigate to the Marketplace icon located on the Facebook homepage or in the Facebook mobile app. Here’s a step-by-step guide:

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.

From here, you can continue browsing and posting items for sale, and even join local buying and selling groups. The entire process is user-friendly and intuitive, making it easy for anyone to start buying and selling on Facebook Marketplace.

How to list products on Facebook Marketplace

You can list your products so that users can see it on the Marketplace, News Feed, and other relevant places on Facebook.

Note: The marketplace product list needs to follow the instructions listed here. Also, you need to read the Facebook community standards.

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. 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 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 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 advertisers who already know how to post ads 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 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. At this point, 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 or Video, or Carousel, and Media.

Also, include a suitable headline, an appropriate product description, 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.

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 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 to do it:

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 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 fewer than 10 items.

Deleting Facebook Marketplace ads

Asking yourself, how to delete my Marketplace ad? It’s pretty straightforward. You just need to;

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 boost Facebook Marketplace listing views

Here are a few tips to help increase views on your Facebook Marketplace listings:

1. Write a clear and detailed description: When creating your listing, be sure to provide a detailed description of the item, including any relevant information such as size, color, and condition. This will help potential buyers find your listing when searching for specific items.
2. Use high-quality photos: Make sure to take clear and well-lit photos of your item from multiple angles. This will help your listing stand out and give buyers a better idea of what they are purchasing.
3. Price competitively: Research similar items on Facebook Marketplace to get an idea of what other sellers are charging. Pricing your item competitively can help it stand out and attract more buyers.
4. Share your listing: Share your listing on your Facebook page, in buy/sell groups, and with friends and family. This will increase the visibility of your listing and help it reach a wider audience.
5. Respond to inquiries quickly: Be sure to check your messages frequently and respond to inquiries as quickly as possible. This will help build trust with potential buyers and increase the chances of a successful sale.

How to advertise a service on Facebook Marketplace

According to eMarketer, 37% of Facebook users will make a buy on the platform in 2023. Given the popularity of Facebook, you can get great results by listing your 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. 

Facebook marketplace+Liondesk (try free)

Facebook marketplace+Zoho CRM (try free)

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, 60% of Gen Z renters would consider ratings and reviews when searching online. This shows the compatibility of social platforms like 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 22 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

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

Discover all the possible Facebook Marketplace Ads integrations with your favorite marketing app.

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 could yield open rates as high as 88%?

Additionally, the store page also allows you to answer questions and provide more relevant information about your products.

5. Use Facebook marketplace insights

Facebook Marketplace Insights is a tool that delivers data and analytics to help sellers track their performance on the platform. With Insights, sellers can view important metrics such as the number of views and messages received for their listings, as well as their overall performance over time. 

Insights can also provide sellers with valuable information about their target audience, including demographics and location data. By using Marketplace Insights, sellers can better understand their audience and optimize their listings to increase visibility and sales on the platform.

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 iPhones, 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 guidelines.

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. Check out this rental Facebook Marketplace listing from inmobilaria QS, for instance.

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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. Chargebacks are more of a problem than most sellers realize.

Final thoughts

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 ad integrations here.