Facebook Marketplace is a convenient platform that allows users to buy and sell items locally. Unlike eBay or other online marketplaces, Facebook does not charge sellers any fees or take a commission on sales made through Marketplace. So in short, Facebook does not take any percent of sales made through its Marketplace platform.
How does Facebook Marketplace work?
Facebook Marketplace operates through users’ existing Facebook accounts. To access Marketplace, users simply need to click on the Marketplace icon on the Facebook app or website.
From there, buyers can browse listings in their local area across a variety of categories like furniture, cars, housing, electronics, and more. Sellers can create listings for items they want to sell by taking a photo, entering a description, and setting a price.
All transactions are completed directly between buyers and sellers. Buyers can contact sellers through Messenger to ask questions, negotiate prices, and arrange pickup or delivery. Sellers are responsible for determining their own prices and arranging delivery or pickup.
Why doesn’t Facebook charge fees or commissions?
Unlike many other online selling platforms, Facebook does not view Marketplace as a major revenue source. Instead, Facebook created Marketplace to enhance user engagement and experience on their platform. By providing an easy way for users to connect and transact locally, Facebook hopes to increase the value users get from the platform and the time spent using it.
Facebook likely determined that taking a cut of sales or charging listing fees would add unnecessary friction to Marketplace transactions. By keeping the platform free to use, Facebook removed barriers that might prevent casual sellers or buyers from participating.
The lack of fees also helps Facebook Marketplace compete with sites like Craigslist where sellers also do not pay commissions. By remaining price competitive, Facebook can attract more sellers and generate a critical mass of listings to make Marketplace useful for buyers.
How does Facebook benefit from Marketplace?
Though Facebook does not directly monetize Marketplace via fees, the feature still benefits the company in a few key ways:
- Increases user engagement – Marketplace gives people another reason to actively use Facebook, boosting overall time spent on site.
- Provides data – User activity and transactions on Marketplace give Facebook valuable data about people’s interests, habits, locations, and more.
- Drives ad revenue – More time on site leads to more ad impressions and revenue. Active users are also more valuable to advertisers.
- Reduces selling fee pressure – Giving users a free transaction platform reduces demands on Facebook to lower their selling fees on other monetized parts of their business.
Essentially, Marketplace helps boost Facebook’s overall ecosystem value. The benefits listed above are difficult to quantify directly but likely add up to a significant user engagement and revenue boost for Facebook over time.
Seller fees on Facebook’s other commerce platforms
While Marketplace itself is free to use, sellers should be aware that Facebook does charge fees and take commissions on transactions made through its other commerce channels:
Facebook Shops
| Subscription Plan | Monthly Fee |
|---|---|
| Basic Shop | $0 |
| Standard Shop | $39.99 |
| Premium Shop | $99.99 |
In addition to potential monthly subscription fees, Facebook Shops charge:
– 5% selling fee for each transaction made through checkout on Facebook/Instagram
– Variable additional fees for shipping labels
Facebook Commerce Manager
Merchants using Commerce Manager pay:
– 5% selling fee per transaction made through Facebook/Instagram checkout
– $0.40 flat fee per order + variable additional fees for delivery
Instagram Shopping
Businesses using Instagram Shopping pay a 6% selling fee on transactions made through checkout on Instagram posts.
Should sellers use Facebook Marketplace or other platforms?
The choice between using Facebook Marketplace versus other selling platforms like eBay or Etsy comes down to a few key considerations for sellers:
Pros of Facebook Marketplace
- No listing or selling fees
- Large existing user base on Facebook
- List and sell locally to minimize shipping
- Simpler listing process than eBay
- Greater seller protection than platforms like Craigslist
Potential Downsides
- Have to manage negotiations and delivery yourself
- No seller rating system like on eBay
- Can’t sell internationally or ship items
- Less structured than other platforms
For high-value or fragile items, eBay’s seller protections may provide more peace of mind. But for everyday items, Facebook Marketplace provides an easy, no-cost way to access buyers in your local community. Sellers should consider their specific items, markets, and capabilities when choosing a platform.
Tips for saving money on Marketplace fees
Since Facebook does not charge any fees for Marketplace listings or transactions, sellers don’t need to employ any specific strategies to reduce costs. The platform is 100% free to use for buying and selling.
However, sellers should keep the following general best practices in mind to maximize success on Marketplace:
- Price items competitively based on local market rates
- Write detailed listings with plenty of photos to demonstrate condition
- Respond to buyer inquiries promptly and politely
- Clearly communicate with buyers to agree on delivery/pickup logistics
- Leave feedback for buyers once transactions are successfully completed
- Consider whether local delivery/pickup is feasible before listing certain items
Following these tips can help sellers get their listings in front of motivated buyers, agree on fair pricing, and handle transactions smoothly. Even without fees, a poor seller reputation or unclear listings can cost money in lost sales.
Other sites like Facebook Marketplace
For sellers looking to list items across multiple platforms, here are some top sites that function similarly to Facebook Marketplace:
Craigslist
– Community classified ads site active globally but most popular in the US.
– Allows sellers to list items by city/region for local pickup.
– No listing or selling fees, but also very little structure or protections.
OfferUp
– Mobile marketplace app active in the US for local buyers/sellers.
– Allows browsing by location and category as well as nationwide shipping.
– Optional Promote feature lets sellers pay to boost listings.
Letgo
– Popular mobile classifieds app in US and Canada for local goods.
– Listings sorted by location and category. In-app chatting offered.
– Free to list with no selling fees or commissions.
eBay Classifieds
– eBay’s own classified listings site, integrated with their marketplace.
– Lets sellers list locally for pickup or nationwide with shipping.
– No selling fees, but optional “special ad” pricing.
Nextdoor
– Neighborhood-specific app/site popular across the US.
– Users buy/sell only within their own communities.
– Free to use with no fees, aimed at hyperlocal transactions.
The bottom line
Facebook Marketplace stands out from many competing platforms by offering a polished mobile commerce experience while taking no fees or commissions. For most casual sellers, Marketplace provides an easy way to access local buyers without having to build a dedicated online store or pay for placement.
The lack of fees allows greater flexibility in pricing and profit on sold items. Sellers should focus on great listings, fair pricing, and smooth communications when using Marketplace. And be sure to familiarize yourself with any fees involved before using Facebook’s other commerce tools like Shops.