Facebook Marketplace is a convenient platform for buying and selling items locally. One of the main benefits of using Facebook Marketplace is that it does not charge any fees or commissions to list or sell items like many other online selling platforms. This makes it an attractive option for casual sellers or small businesses looking to reach local buyers without incurring additional selling costs. Here is a closer look at whether there are any costs associated with selling on Facebook Marketplace.
Listing Items
Facebook does not charge any listing fees to post items for sale on Marketplace. You can create listings with photos, descriptions, prices, and other details entirely for free. This enables sellers to test out the Marketplace without having to invest any money upfront.
Some key things to know about creating Facebook Marketplace listings:
- Listings can only be created from a Facebook personal profile or business page
- There are no limits on how many items you can list
- Listings automatically expire after 30 days but can be renewed
- Facebook does not charge any fees or commissions to create or renew listings
Overall, the process of creating and managing Marketplace listings is completely free. Sellers only need an active Facebook account to get started.
Making Sales
When an item sells on Facebook Marketplace, the transaction takes place directly between the buyer and seller. Facebook does not collect any commission or fees on sales made through Marketplace listings.
Some key things to know about Marketplace sales:
- All payments are handled between buyers and sellers privately
- Facebook does not process payments, collect sales tax, or provide buyer protection
- Sellers receive the full amount they listed the item for
- There are no Facebook selling fees deducted from the sale price
This differs from platforms like eBay or Etsy that charge transaction or listing fees. On Facebook Marketplace, the seller keeps the full sale amount. The only potential costs for sales are payment processing fees if accepting credit cards or payment apps.
Advertising
Facebook does provide some options for Marketplace sellers to advertise their listings or boost visibility. This includes:
- Boosted Listings – Pay to promote an individual listing and get more views.
- Marketplace Ads – Create targeted ads to reach more local buyers.
Boosted listings can be purchased for as little as $5 per day. Marketplace ads follow the standard Facebook ad pricing model based on things like impressions, clicks, and audience size.
These advertising options are completely optional for sellers. There are no requirements to pay for ads or boosted listings to sell on Marketplace. But they provide a way to get added exposure for listings if desired.
Optional Features
Facebook has also begun rolling out some advanced optional features for Marketplace sellers. This includes options like:
- Shipping Services – Allow buyers to purchase shipping labels through Facebook.
- Product Bundles – Offer bundles of multiple items together.
- Appointment Services – Allow buyers to book appointments associated with a listing.
These types of features may come with additional fees if sellers choose to utilize them. However, they are completely optional and not required to simply list or sell items on Marketplace. Sellers can stick to basic free listings if they prefer.
Payment Processing Fees
As mentioned above, Facebook does not handle payments between Marketplace buyers and sellers. However, sellers need to arrange payment collection on their own. This often involves using external payment apps, credit card processors, or in-person cash collection.
Most third-party payment services charge some form of transaction fee. For example:
- PayPal charges a fee of 2.9% + $0.30 per transaction
- Stripe charges 2.9% + $0.30 for online transactions
- Venmo charges a 1% – 2% fee for instant transfers to debit cards
So while Facebook does not collect any commissions or cut of sales, sellers may incur small payment processing fees. The exact amount will depend on the seller’s chosen payment methods and providers.
Sales Tax Obligations
Depending on where they are located, Facebook Marketplace sellers may be responsible for collecting and remitting sales tax. While Facebook does not handle sales tax itself, requirements vary based on state and local laws.
Some key sales tax guidelines for Marketplace:
- Sellers may need to register with tax authorities and obtain licenses/permits
- Tax rates vary based on location – may be none, or up to 10%+
- Sales tax is paid by the buyer at the point of sale
- Sellers are responsible for remitting collected sales tax to proper authorities
While this does not represent a direct fee to sell on Facebook, applicable sales tax regulations should be factored into Marketplace selling. Sellers must ensure they handle sales tax appropriately based on where sales take place.
Returns and Refunds
Facebook Marketplace does not oversee returns, refunds, or any buyer protection. Policies and handling for returns are up to the seller. Some sellers choose to offer return policies on Marketplace items, while others operate on more of an “as-is” basis.
If a seller does choose to accept returns and refunds, they take on these costs themselves. This may include things like:
- Refunding the buyer’s payment
- Incurring shipping/handling costs if the buyer must return an item
- Potential loss from reselling a returned item
Accepting returns can increase costs for Marketplace sellers. But formal return policies can also make buyers more confident about purchasing. Sellers need to weigh these factors when deciding on Marketplace return guidelines.
Shipping Costs
For Marketplace sales involving shipped items, the seller is responsible for arranging and covering shipping costs. Options include:
- Absorbing shipping costs as part of the sale price
- Charging a separate shipping fee to buyers
- Offering free shipping
If charging shipping, common choices include flat rate fees based on item type or weight or passing through actual carrier shipping costs. Facebook does not prescribe any shipping policies – it is up to each seller.
Sellers must build shipping expenses into their Marketplace selling strategy and margins. Higher shipping costs may need to be offset by adjusting sale prices accordingly.
Shipping Cost Examples
| Carrier | Domestic Shipping Cost |
|---|---|
| USPS Priority Mail Small Flat Rate Box | $9.45 |
| FedEx Home Delivery | $8.10+ |
| UPS Ground | $10.95+ |
These represent estimated costs sellers may incur for packaged shipments. Actual rates will vary based on weight, distance, and other factors.
Packing Supplies and Materials
Sellers who ship items sold on Marketplace also need packing supplies like boxes, bubble wrap, tape, labels, etc. These are regular operating costs that should be factored in. Some packing material costs may include:
- Cardboard boxes – $1 – $3 per box
- Bubble wrap – $20+ per large roll
- Packing tape – $5 – $10 per roll
- Shipping labels – $15 per 100 labels
Savvy sellers try to reuse boxes and materials when possible. But ongoing costs for various shipping supplies should be budgeted for when selling on Marketplace.
Time Commitment
Selling on Facebook Marketplace also requires a time investment. Between creating listings, answering buyer questions, arranging meetups/shipping, and other seller obligations, this can add up to a significant time commitment.
Some estimates of required time commitments:
- Creating/managing listings – 30+ minutes per listing
- Communicating with buyers – 15-30+ minutes per sale
- Packing and shipping items – 30+ minutes per shipment
- Driving to meetups – 30+ minutes round trip per local sale
There are no direct financial costs associated with the time required to sell on Marketplace. But for busy sellers, the opportunity cost of time should be factored in to the overall costs.
Conclusion
In summary, while Facebook does not charge listing or selling fees for Marketplace, sellers do take on some indirect costs related to payment processing, shipping, supplies, sales tax remittance, and time commitments. Marketplace provides an appealing free platform for casual peer-to-peer sales, but more serious sellers need to consider the variety of operational expenses required to run a Marketplace business efficiently. Carefully tracking all costs and building them into pricing strategies can help Marketplace sellers maximize profitability.