Facebook Marketplace is a business service that lists and sells services and products. The marketplace is free for individuals. Businesses pay a 5% fee on services or products sold.
Brad Nakase, Attorney
Email | Call (888) 600-8654
Charlotte is the owner of a small business selling baby clothes and furniture. She has a small store in a local outdoor mall, but she is hoping to have an online presence as well. While she has had some success selling on sites like Etsy and eBay, she would like to reach as many people as possible and be able to reach new mothers specifically. She decides to try selling her items on Facebook Marketplace, because after all, Facebook has billions of users around the world. Charlotte joins social groups for new mothers and pregnant women, advertising her products to those in need of onesies, cradles, and rockers. Within a few months, Charlotte’s sales have skyrocketed, and she is shipping her products to women all over the U.S., Canada, and in Europe.
It is natural for business owners to look for new ways to increase sales and grow their companies. Facebook Marketplace is an excellent option for these individuals. After all, as a social media app, Facebook connects millions of people, all of whom are hoping to buy or sell products or services in a safe and secure way. Luckily, if a business owner already has an account on Facebook, he or she can promote their company’s products or services through posts or paid ads.
Facebook Marketplace is a platform that Facebook users can use to sell any manner of products or services to buyers. These buyers will be able to find these products or services via Facebook, so the whole transaction is self-contained on the app.
Usually, Facebook Marketplace is used by automotive providers, real estate professionals, and retail or eCommerce companies. If a business owner does not yet have a Facebook account, he or she will need to create one to sell products on Facebook Marketplace. The great news is that Facebook is free to use.
There are a few significant advantages to using Facebook Marketplace to sell goods or services. These include the following:
A Lot of Exposure
As one of the world’s leading social media platforms, Facebook enjoys almost 3 billion active monthly users. If a business owner chooses to sell items on Facebook Marketplace, he or she will take advantage of the site’s incredible reach.
Quick Listing Process
Facebook Marketplace allows a business owner to quickly post items for sale on either a desktop device or mobile app. It is therefore convenient and easy to use.
Easy Method to Test Products
If a business owner has new products or services that he or she would like to advertise, they may test out their performance on Facebook Marketplace. If the listing sells out immediately, then the owner can renew the listing, as well as selling the successful product on other platforms.
There are a few negatives regarding using Facebook Marketplace that a business owner should be aware of. These drawbacks include the following:
Volume Sale Limits
If a business owner sells multiple copies of a single item, then he or she will have to create individual listings for each item. This can take up valuable time, especially if a business owner has many of the same products to list.
Selling Fees
Facebook charges sellers fees after each successful sale. For each sale, Facebook charges a 5% selling fee or a $.40 flat fee if the sale is less than $8. A business owner should be aware that these fees can add up quickly if their products have low profit margins.
Shipping Requirement
Facebook mandates that all sellers ship orders within 3 business days or by the handling time provided. A business owner will need to offer shipping updates on every order. Sometimes, a business owner might be able to offer local delivery if he or she sells to customers in the local community.
There are several methods by which a business owner can improve his or her chances of selling products successfully on Facebook Marketplace. The following are some useful pieces of advice that Facebook buyers and seller recommend:
Do Research
Before selling products or services on Facebook, a business owner should devote time to doing market research. Doing this research can help a business owner understand what buyers are looking for or are interested in.
The first step is for a business owner to see if similar products are already being sold on Facebook Marketplace. If they are, the owner should figure out how his or her product is different and whether there is a demand for it. He or she should also look at how similar products are priced as well as described in the listing.
It is a good idea to charge a little less for one’s items than competitors. Either that or make it clear why one’s item is worth more. This kind of research will give a business owner an edge over the competition from the start.
Use Professional Photos
Facebook users will pay a lot of attention to the photos a seller posts, so it is important for a business owner to have high-quality photos. Blurry or unlit photos from one’s camera roll will not attract customers. It is also important to include numerous photos that show off the products features, colors, and dimensions. It may be wise to show the item being used or include review photos from satisfied customers.
Have a Listing Strategy
It is important to ensure that a product is listed in the appropriate category so that customers know how to search for it. It is therefore wise to use SEO keywords in the description. Looking at similar listings can help a business owner figure out how to list his or her product. Before posting a listing, one should be sure to proofread the description.
Be Prompt with Responses
When a business owner lists products on Facebook Marketplace, users are able to contact the owner directly through the Facebook Messenger app. Through this app, the seller and customer are able to chat in real-time about the sale. It is therefore critical that the seller answer promptly. Otherwise, a potential customer might lose interest and look to a competitor.
Have a Return Policy
Facebook gives business owners the opportunity to create their own return policies. Once a business owner creates one, he or she should list it on their Facebook business page for customers to review. Openness is key. Issues with returns can lead to unhappy customers, which may damage one’s reputation on Facebook.
Engage in Buy and Sell Groups
A business owner should be aware of any Facebook groups that his or her target audience is active in. It may be a good idea to participate in these groups in order to publicize one’s listings. For instance, if a business owner sells winter apparel, then he or she may wish to join Facebook groups for skiing and mountaineering. Facebook groups are thereby a great way of reaching one’s target customer base.
Facebook Marketplace is a great platform for small business owners who are looking to reach a large audience. Because the platform is free, a business owner may test it out for a few months and see if it produces consistent sales.
Blog: Business | Corporate | Employment Law
