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 sell items. This makes it an attractive option for individuals looking to sell used goods without incurring additional costs.
Does Facebook Marketplace charge sellers fees?
No, Facebook does not charge any fees or commissions to sell items on Marketplace. Sellers can list their items for free and keep 100% of their earnings when items are sold. This differs from other sites like eBay and Etsy that charge listing fees and take a percentage of sales.
How does Facebook make money from Marketplace?
While sellers are not charged directly, Facebook does generate revenue from Marketplace in a few ways:
- Advertising – Facebook displays ads within Marketplace and charges advertisers to promote their products/services.
- Transaction fees – If buyers and sellers use Facebook Pay for transactions, Facebook charges a fee for processing payments.
- Product boosts – Sellers can pay to boost product visibility in Marketplace searches.
- Data collection – User data and behavior from Marketplace activity is valuable for Facebook’s ad targeting and analytics.
So the platform does indirectly monetize Marketplace, but none of those costs are passed on to individuals posting items for sale.
What are the main benefits of selling on Facebook Marketplace?
Some of the key advantages to using Facebook Marketplace include:
- No selling fees – As mentioned, there are no listing, insertion, or final value fees.
- Exposure – Marketplace listings can gain significant visibility within local Facebook communities.
- Established user base – Over 2 billion people actively use Facebook each month.
- Familiar platform – Easy for both buyers and sellers to navigate.
- Payment processing – Facebook Pay is integrated for completing transactions.
- Safety – User profiles help validate identities and build trust.
What are the main limitations?
Potential drawbacks sellers should be aware of include:
- No customer support – Facebook does not provide support for Marketplace transactions.
- Scams – Less protections than sites like eBay make scams more common.
- Visibility – Harder to stand out with so many listings and limited search functionality.
- Local only – Cannot sell to buyers located far away.
- Returns – No built-in returns/refunds process.
- Discount seekers – Buyers often expect very low prices on used goods.
What types of fees could you incur selling on Marketplace?
While Facebook does not charge direct fees, sellers may still incur some costs, such as:
- Payment processing fees – If accepting Facebook Pay, transactions over $10 have a fee of 5% of the sale price, capped at $0.99.
- Shipping costs – If shipping an item, sellers cover packaging materials, postage, and gas for drop-offs.
- Boosting fees – Optional promoted listings start at $5 per item per day.
- Taxes – Income from sales may be taxable. Sales tax may apply on items.
Sellers should factor these potential expenses into their pricing and processes when selling on Marketplace.
Tips for saving on fees selling on Facebook
Given the limited fees, most of the costs that sellers incur are optional. Here are some tips to reduce expenses:
- Avoid promoted listings and product boosts to save on advertising fees.
- Meet buyers locally for pickup rather than shipping items.
- Negotiate shipping costs into your item prices.
- Reuse packaging materials from orders you receive.
- Offer lower prices than competitors since you aren’t paying fees.
- Track tax deductions and write-offs to reduce tax obligations.
How do Facebook Marketplace fees compare to other platforms?
Facebook Marketplace tends to have much lower fees compared to leading online selling platforms:
| Platform | Selling Fees |
|---|---|
| Facebook Marketplace | No selling fees |
| eBay | 10% of total sale + $0.30 listing fee per item |
| Etsy | 5% transaction fee + $0.20 listing fee per item |
| Craigslist | No selling fees for most categories |
| Amazon | Referral fee of 15% of sale price + variable closing fees |
The lack of sales commissions and upfront listing fees makes Facebook Marketplace one of the most cost-effective options out there for selling used goods locally online.
Should I sell exclusively on Marketplace or list on multiple platforms?
Exclusively using Facebook Marketplace can allow you to avoid any fees completely. However, it also limits your exposure. Advertising across multiple platforms like Facebook, Craigslist, OfferUp, and Nextdoor can help items sell more quickly. The small fees may be worth it to access a larger buyer audience.
Consider cross-listing newly added items across several platforms. Then remove listings from lower performing sites first. This allows you to gauge interest and traffic across different online marketplaces.
Can I get invoice payments on Marketplace sales?
Facebook Marketplace does not have a built-in invoicing system. Payments are designed to be made directly by buyers, either in-person or through Facebook Pay. However, there are a few workarounds sellers can use to get invoice payments:
- Use an outside payment processor like PayPal to send buyers an invoice or payment request.
- List contact details to coordinate payment separately after negotiating a Marketplace deal.
- Use the delivery method and have the carrier collect a check or cash on delivery.
- Request payment upfront before agreeing to ship an item.
Getting paid by invoice adds an extra step but opens up options like accepting credit cards and allowing flexible payment terms.
Is there a way to get an immediate payout from Marketplace sales?
Facebook Payments for purchase transactions can take up to 5 business days to clear into your bank account or PayPal balance. A few ways to get immediate payout for Marketplace include:
- Meet buyers in-person and accept cash payments.
- Use PayPal, Venmo, CashApp, or another instant peer-to-peer app.
- Have buyers pay with debit cards through a mobile reader.
- List your items for slightly higher prices and offer a discount for quick payment.
Expediting payouts improves cash flow for active sellers doing high volumes of transactions.
Can I use Marketplace internationally or only in my country?
Facebook Marketplace functions as a local marketplace, so listings are only visible to potential buyers in your country. There is no functionality to sell items internationally. Your location settings also impact the currency used.
If looking to sell internationally, you would need to list your items for sale on global platforms that support shipping across borders. eBay and Etsy allow sellers to ship worldwide. You can also build an international ecommerce site from scratch using providers like Shopify or WooCommerce.
What are best practices for saving on Facebook Marketplace fees?
To maximize earnings from Facebook Marketplace sales, sellers should:
- Avoid promoted listings or product boosts when first listing an item.
- Bundle shipping costs into the listing price rather than charging separately.
- Use old boxes and packaging materials to ship items.
- Meet local buyers in person for quick cash payments.
- Checkout competitors’ prices and undercut them since you don’t pay fees.
- Save receipts and track expenses to deduct on taxes.
- Time listings to get the most views right away before renewing.
Following best practices allows sellers to reduce ancillary costs, qualify for tax deductions, and maximize the profit from each item sold.
The Bottom Line
Facebook Marketplace does not charge any direct commissions or fees for sellers to list items. This can result in significant savings compared to other platforms. There are still optional costs sellers may incur around shipping, taxes, and advertising. Following best practices allows you to minimize these expenses and take advantage of Marketplace’s free listing model.