Facebook Marketplace is a feature within Facebook that allows users to buy and sell items locally. Since its launch in 2016, Marketplace has grown rapidly in popularity among consumers looking to buy and sell used goods. But can businesses also use Marketplace to sell new products and reach new customers? The short answer is yes, businesses can sell on Facebook Marketplace. However, there are some limitations and requirements that businesses need to be aware of.
Facebook Marketplace overview
Facebook Marketplace was launched in 2016 as a way for Facebook users to buy and sell items with people in their local communities. On Marketplace, users can list items for sale, search for items they want to buy, message sellers, and arrange to meet up locally to exchange items and money.
Some key features of Facebook Marketplace include:
- Buy and sell locally – All transactions happen locally between individual buyers and sellers. Marketplace is not set up for shipping items.
- Product categories – Listings can be posted in a variety of categories including vehicles, housing, apparel, electronics, furniture, and more.
- FREE to list items – There are no listing fees for sellers to post items for sale.
- Mobile friendly – Marketplace is designed primarily for mobile use within Facebook apps.
- Facebook user profiles – Buyers and sellers can view each other’s Facebook profiles and mutual friends to establish trust.
Since Marketplace runs on the Facebook platform, it already has access to a huge base of potential buyers and sellers in any given area. As of 2021, there were over 1 billion monthly active users on Facebook worldwide.
Can businesses sell on Facebook Marketplace?
The short answer is yes, businesses are allowed to use Facebook Marketplace to list products for sale. However, there are a few caveats for businesses to be aware of:
- Must comply with Facebook commerce policies – Businesses must follow all Facebook rules and policies around buying/selling activities.
- No storefronts – Marketplace does not allow businesses to create storefront profiles. Each product must be listed individually.
- Limits on volume – To maintain a local, community feel, Facebook may limit the volume of products a business can list.
- No shipping – Facebook Marketplace is for local, in-person transactions only. Businesses cannot ship products sold through Marketplace.
- No advertising – Businesses cannot run ads linking directly to Marketplace product listings.
So businesses are permitted to use Facebook Marketplace, but within the parameters suitable for an individual-to-individual sales platform. Businesses may want to try Marketplace as an additional sales channel, while maintaining their core e-commerce operations through their own websites and stores.
Benefits for businesses selling on Marketplace
There are some potential benefits for businesses utilizing Facebook Marketplace as a supplemental sales channel:
- Reach new local customers – Marketplace provides exposure to the many Facebook users in your area looking to buy.
- Low barrier to entry – With no listing fees or need to build an e-commerce site, Marketplace is easy for businesses to try out.
- Sell excess inventory – Businesses can offload extra product inventory or items that are being discontinued.
- Move slow-selling items – Products that aren’t big sellers on a business’s own website might move better on Marketplace.
- Establish local presence – A presence on Marketplace can raise awareness of a local business and its products.
For businesses with a local physical location, selling on Marketplace can be a nimble way to clear out excess stock and introduce products to nearby customers.
Compliance requirements for businesses
If a business decides to give Facebook Marketplace a try, it’s important to be aware of the compliance requirements:
General Facebook commerce policies
Facebook has an extensive Commerce Policies document that covers general rules around buying and selling activities across all Facebook services. Key guidelines from these policies include:
- Accurate information – Listings must provide accurate product info and availability details.
- Lawful transactions – All required licenses, registrations, and certifications must be obtained.
- Prohibited content – Listings should not include prohibited or age-restricted products.
- Honor transactions – Businesses must fulfill orders and deliver items being sold.
Businesses should take time to understand all aspects of Facebook’s Commerce Policies. Failure to comply could result in listings being removed or loss of Marketplace access.
Facebook Marketplace guidelines
In addition to the general Facebook Commerce Policies, there are some specific guidelines for buying/selling on Marketplace:
- Local pickup – Products must be available for local pickup only, no shipping.
- Limits on volume – Businesses may be limited in how many items they can list at once.
- Profiles – No storefront-type profiles allowed, only personal profiles.
The types of products that can be sold on Marketplace are also limited compared to other sales channels. For example, businesses cannot sell services, digital goods, gift cards, alcohol, or weapons on Marketplace.
Staying “in good standing”
For businesses to maintain access to Facebook Marketplace, they must remain “in good standing” by avoiding policy violations. Possible infractions include:
- Listing prohibited items
- Failing to deliver sold items
- Misrepresenting products or availability
- Listing items improperly (e.g. including shipping for a local pickup item)
Committing violations can result in listings being removed or a business’s selling privileges being revoked. So it’s crucial for businesses to thoroughly understand and closely follow all Marketplace policies.
Tips for businesses using Marketplace
If a business decides to experiment with Facebook Marketplace as a sales channel, here are some tips for success:
- List locally popular products – Focus on your products that would appeal most to local buyers.
- Highlight business information – Mention your business name, location, and website to raise awareness.
- Use high-quality photos – Great photos attract more buyers and build trust.
- Price competitively – Check comparable item prices and price accordingly.
- Respond promptly – Reply quickly to buyer inquiries and requests to set meet times.
- Gather feedback – Ask buyers for feedback to improve future Marketplace presence.
Maximizing your reach and engagement on Marketplace does take some effort. Businesses need to think through their approach, focus on listing quality products, and provide great service to buyers.
Pros and cons for businesses using Marketplace
Here is a quick summary of some potential pros and cons for businesses utilizing Facebook Marketplace:
Pros
- Free to list products
- Reaches local buyer audience
- Can move slow-selling items
- Low barrier to entry
- Supplements other sales channels
Cons
- Cannot create business profiles
- Limits on volume of listings
- No shipping allowed
- Less seller protection than other marketplaces
- Lower margins selling at consumer prices
Facebook Marketplace vs other platforms
If considering Marketplace, businesses should also look at how it compares with other online sales channels:
Facebook Marketplace
- Local buyers only
- No shipping
- Personal profile only
- Can’t advertise listings
- No fees
Amazon
- Very large buyer pool
- Fulfillment services available
- Seller account and store option
- Can run Amazon ads
- Selling fees apply
eBay
- Very large buyer pool
- Shipping available
- Business seller accounts
- Can advertise listings
- Selling fees apply
Own e-commerce site
- Complete control over site
- Unlimited products and customization
- Responsible for driving own traffic
- Higher setup work and costs
- Ongoing hosting fees
Each platform has pros and cons for businesses. Marketplace serves a specific purpose that others do not, making it a potential add-on sales channel.
Setting up a Marketplace presence
Here are some steps businesses can follow to get started selling on Facebook Marketplace:
1. Read Facebook commerce policies
Take time to thoroughly understand Facebook’s Commerce Policies regarding buying/selling activities. Ignorance of policies is not an excuse for violations.
2. Determine allowed products
Review which types of products can and cannot be sold on Marketplace. Certain categories like services, gift cards, alcohol etc are prohibited.
3. Take product photos
Great photos are key on Marketplace. Take clear, high-quality photos that accurately represent your items.
4. Create listings
Draft posts for your products that provide all relevant details like description, price, pickup location etc.
5. Monitor activity
Check your listings daily to respond promptly to inquiries and requests. Update availability as items sell.
6. Refine approach as needed
See what listing strategies work best for engagement and sales. Tweak your approach to maximize success.
With some diligence on policies and product listings, businesses can tap into Facebook Marketplace for supplemental local sales.
Conclusion
Facebook Marketplace presents some unique opportunities for businesses to expose products to local buyers. While there are limitations around shipping, profiles, and volume, Marketplace can serve as an additional sales channel alongside other e-commerce platforms. Businesses should thoroughly research Commerce Policies, test out product listings, provide great service to buyers, and refine their approach over time when utilizing Marketplace. With a thoughtful strategy, tapping into this pool of ready local buyers can incrementally boost sales and awareness for products and brands.