Facebook marketplace is an interesting option for dropshipping, but there are some important factors to consider. In this article, we’ll explore the pros and cons of using Facebook marketplace for dropshipping and help you determine if it’s the right sales channel for your business.
The potential benefits of Facebook marketplace for dropshipping
Here are some of the potential advantages of using Facebook marketplace for dropshipping:
- Large audience – Facebook has over 2 billion monthly active users, many of whom are already using Facebook marketplace to buy and sell items locally. This gives you access to a huge pool of potential customers.
- Lower fees – Facebook does not charge any fees or commissions for items sold through marketplace. This can result in higher profit margins compared to other sales channels.
- Sell across the US – You can sell to customers across the entire United States through Facebook marketplace.
- Leverage existing audience – If you already have a Facebook business page or large friend network, you may be able to easily promote your marketplace listings to fans and friends.
- Less competition – Facebook marketplace tends to have less competition than dedicated ecommerce sites, so it may be easier for your products to stand out.
The potential challenges of Facebook marketplace for dropshipping
However, there are also some key challenges to evaluate if you want to use Facebook marketplace for dropshipping:
- No integrated order management – Facebook marketplace does not have built-in tools for managing orders, inventory, shipping, and tracking. You’ll need to set up your own systems for this.
- Manual order processing – You’ll have to manage all orders manually, which does not scale well. This can become extremely time-consuming as your sales volume grows.
- Ship items yourself – Per Facebook’s policies, you have to ship items yourself when selling on marketplace. You cannot ship directly from a supplier or 3PL.
- No supplier integration – You cannot connect a Facebook marketplace store directly with an inventory/order management system or supplier.
- Emphasis on local pickup – Most marketplace shoppers expect local pickup or shipping from individuals, not dropshipping.
- Restricted products – Facebook prohibits the sale of certain product categories like weapons, drugs, alcohol, and tobacco.
Is dropshipping on Facebook marketplace allowed?
Facebook’s commerce policies do not explicitly prohibit dropshipping. However, they do state that all items sold on marketplace must be shipped from your own inventory and location. You cannot ship items on behalf of third-party suppliers or manufacturers.
So technically, you can practice a form of dropshipping where you purchase inventory from a supplier after receiving an order, ship the item yourself, and have it sent from your own address. But traditional dropshipping, where items ship directly from a third-party to the customer, is not allowed.
Tips for dropshipping on Facebook marketplace
If you want to try dropshipping on Facebook within their policy allowances, here are some tips:
- Focus on small, inexpensive items – This makes the order processing and shipping you have to handle yourself more manageable.
- Price items higher – Price in buffer room for the shipping costs you’ll incur.
- Manage customer expectations – Be upfront about handling times and set reasonable delivery estimates.
- Automate as much as possible – Use order/inventory management tools to automate what you can.
- Direct ship to customers – Have suppliers ship items to your customers’ addresses, rather than to you first.
- Use a virtual address – Get a virtual business address to use as your shipping origin.
Pros and cons of dropshipping on Facebook marketplace
Here is a quick summary of the key pros and cons:
| Pros | Cons |
|---|---|
| Large audience | No built-in order management |
| Lower fees | Manual order processing |
| Sell across the US | You must ship items yourself |
| Leverage existing audience | No supplier integration |
| Less competition | Emphasis on local pickup |
| Restricted products |
Conclusion
Facebook marketplace has some great advantages that make it an attractive sales channel to consider for dropshippers, including a huge audience and no selling fees. However, the restrictions around shipping only from your own inventory and location as well as the lack of native order management functions also pose some significant challenges.
The best approach is likely to start small, focused on inexpensive and easy-to-ship products. Make sure you implement workarounds for the platform limitations, such as automating order/inventory management through external tools and directing suppliers to ship to customers. And carefully manage customer expectations around handling and shipping times.
With the right products, systems, and expectations set, Facebook marketplace could be a great additional sales channel for boosting your dropshipping business.