The Complete Guide to Facebook Marketplace for Your Business

The Complete Guide to Facebook Marketplace for Your Business

In October 2016, Facebook Marketplace was released as a local online buying and selling platform for selling both new and used goods. 

In 50 countries, people use Facebook Marketplace to buy and sell goods. 

As a result, marketers can use it as a platform to increase product conversions and sales.

You’ll learn everything you need to know about Facebook Marketplace in this tutorial, along with the best tools for lead generation and lead management automation.

What is Facebook Marketplace?

Before the launch of this feature, Facebook users used buy and sell groups to trade goods. 

Similar in concept, but with the ability to post products for sale, search for items to buy, and mark items as sold, this feature was created. 

Like the social Craigslist, the Facebook Marketplace interface provides a complete store-like functionality that connects users directly to what they want to buy or sell.

Facebook does not facilitate sales transactions, but it gives sellers a place to advertise their goods without interfering with price negotiations and delivery methods with customers.

Businesses Can: Through the Facebook Marketplace:

1. Display various retail goods including automobiles and houses.

2. Use the marketplace to promote store items to increase sales.

3. Display new or used products from the Facebook page’s free used shop.

Who Can Sell on Facebook Marketplace?

Everyone, whether they have new or used items for sale, is welcome on Facebook Marketplace. 

It is also for e-commerce companies, business owners, vendors, artisans who make things by hand, fashion industry, real estate etc.

Marketplaces on Amazon and eBay are comparable to this feature. However, in this case, listing your goods or services on Facebook is free. 

However, after the item is shipped, you will be charged 5% of the product price when a buyer orders your product.

Advantages of Using Facebook Marketplace for Businesses | Another Key Point for Facebook Marketplace

With 2.7 billion monthly users, of which 1 billion are active marketplace users, Facebook offers a tremendous marketing opportunity. 

As this gives them access to a large global audience, this is an added advantage for small businesses. 

Let’s take a look at some of the benefits of using Facebook Marketplace.

1. Availability of Different Marketing Tools

Businesses using the platform can access various options through the Facebook Marketplace

The merchant selling feature serves as an example of this. 

Businesses can also use chatbots or marketing automation technologies to provide automated responses to customer inquiries to answer frequently asked questions.

2. Facilitating One-on-One Sale to Prospects

Through Facebook Messenger, it enables companies to communicate one-on-one and sell directly to consumers. 

Direct contact with you allows you to respond to inquiries from potential customers in real time. 

By doing this, you can inform them about the product before they lose interest. Additionally, it encourages shoppers to feel safe and confident while making a choice.

3. Accepting Versatile Payment Methods

Facebook Marketplace does not provide services for sales transactions. 

As a result, companies are allowed to accept any form of payment, including Shopify, BigCommerce, PayPal, and bank transfers. 

You can also deposit cash, and this is recommended.

4. Allowing to List Products for Free and Boosting Sales

Facebook Marketplace is free to use for all companies to post products and manage inventory. 

Conversion funnels can be streamlined and sales can be increased by listing your products in literally minutes. 

To further boost conversions, if you already have a Facebook store, integrate it directly with your marketplace.

What to Sell on Facebook Marketplace?

Not all goods are eligible for market sale. 

When learning how to post on Facebook Marketplace as a business, it’s important to understand whether goods or services are on the prohibited list. 

These are the things Facebook says you can’t sell.

  1. Adult products
  2. Alcohol
  3. Animals
  4. Body parts and fluids
  5. Digital media and electronic devices
  6. Documents, currency, and financial instruments
  7. Gambling
  8. Hazardous goods and materials
  9. Human exploitation and sexual services
  10. Ingestible supplements
  11. Jobs
  12. Medical and healthcare products
  13. Prescription products, drugs, and drug paraphernalia
  14. Products with overtly sexualized positioning
  15. Recalled products
  16. Services
  17. Stolen goods
  18. Digital products and subscriptions
  19. Tobacco products and related paraphernalia
  20. Weapons, ammunition, and explosives

In other words, you can sell anything that isn’t on the list above, including houses, cars and e-commerce items. 

Consumers often look for discounts and prefer to pay in cash when purchasing goods.

Now you can use other categories to market your products now that you know what to sell and what not to sell. 

Choosing the right category makes it easy for customers to find your product.

Categories: Facebook Marketplace 

Listing categories should be taken into consideration when learning how to post on Facebook Marketplace as a business. 

Businesses can properly list their products to reach the right audience. These groups include:

  1. Deals
  2. Clothing & Accessories
  3. Classifieds
  4. Electronic
  5. Entertainment
  6. Family
  7. Hobbies
  8. Housing
  9. Home & Garden
  10. Vehicles
  11. Home sales

How Does Facebook Marketplace Work?

To categorize things on Facebook Marketplace, a simple idea is used. 

Sellers have the option to offer their goods for close sale. 

The Platform uses information from user profiles to determine users’ locations when they search for products. 

Then, it displays the various goods that are available for purchase there. 

The potential buyer then decides which item they want to buy and contacts the seller via Facebook Messenger. 

Both parties agree on the method of payment and delivery of the item, either in person at an agreed location or by shipment. See an example below.

The marketplace was used by an auto business (Eco Park Automotive) to advertise their vehicles for sale. 

A potential customer decides on the car he wants (2013 Honda Fit Sport Hatchback) and schedules an appointment with the dealer. 

It’s a smooth process, isn’t it?

A free application called Facebook Messenger enables companies to conduct transactions without exchanging phone numbers or addresses.

Facebook Marketplace Algorithm

This is how the Facebook Marketplace algorithm works, according to the website’s rules. 

“For customers, we offer the opportunity to translate items into their preferred language using machine translation, as well as visual similarity searches and computer vision to recommend products (such as chairs that match a customer’s chair).

We offer tools for sellers that make it easy to create product listings by automatically recommending the appropriate category or price, as well as a tool that automatically optimizes lighting when images are submitted.

It turns out that the platform’s algorithm works by showing users products that are similar to what they’ve searched for or viewed before. 

By optimizing your products to appear more prominently in marketplace search engines, you can take advantage of this. 

Add keywords and descriptions to your product tags and descriptions to achieve this.

How to List Products on Facebook Marketplace

If you are a business owner, you must first have a personal or company Facebook account. 

You can create one if you don’t already have one. 

Otherwise, log in to Marketplace with your existing Facebook account. 

Then, add your products to the Facebook Marketplace, News Feed, and other relevant areas so users can see them.

Note: Marketplace product listings must follow the guidelines presented above. You should also read the Facebook Community Standards.

To list your products, follow this step-by-step procedure.

1. On the News Feed, click on Marketplace.

2. Click on Create a new listing from the menu under the Marketplace.

3. From the three options—Items for Sale, Vehicles for Sale, and Homes for Rent—select the item you want to offer. We will select “Item for Sale” in this example.

4. Choose your product category, enter the information you want to sell, including price, location and a brief description of the item. Additionally, 10 product images are allowed.

5. To publish the listing to the marketplace, click Publish. Keep in mind that you have the choice of listing your goods in many places.

Congratulations! Your item is currently available on Facebook Marketplace. 

Please sell them now. 

On your Facebook business profile, click the Shop tab to open your store.

Making your products available to potential customers through their list will increase your chances of making a sale. 

However, using Facebook ads can speed up the process and increase the number of people who see your content.

How to advertise on the Facebook Marketplace

This procedure is quite simple for advertisers who are already familiar with posting ads on Facebook. After logging in to Facebook, go to Marketplace by either touching the grid button or scrolling down and selecting Marketplace. Additionally, you can do this by hitting the Marketplace icon directly.

As you scroll down to the Marketplace page, you can see all of the platform’s recommended organic listings, as well as a few paid ads.

Sponsored Facebook Marketplace ads are specifically designed to target appropriate audiences based on geography and previous interactions with users.

Here’s a step-by-step tutorial to post an ad on Facebook Marketplace:

1. Log in to the ad account you want to use to run your ads and go to Ads Manager.

2. Decide the objective of your campaign based on the target audience for your ad. This can be done to encourage others to learn about, consider or buy your product.

In this example, select the conversion goal and press Continue. These settings help show ads to potential customers.

3. The next step is to configure your campaign settings, ad set targeting, and budget selections as you would any other Facebook ad.

After finishing, select Next.

4. Choose an audience. You can use either an existing audience or a new audience at this stage. Decide as needed.

5. On the Ad Set screen, scroll down to discover the placements. Except for Facebook Marketplace and News Feed, all boxes must be unchecked before you can proceed.

6. Make sure your Facebook page is the first option here. Next, decide on your ad creative. Choose Single Image, Video, or Carousel as your first ad format, followed by Media.

Include a catchy headline, accurate product description, and a compelling call-to-action in your ad.

7. Create a template for the message. This is where you can push people to contact you after they click on the ad. You can create a unique experience for users who interact with your ad, start a conversation, or generate leads here.

8. Decide whether to use the Facebook Pixel or App Events to track conversions.

When you create your ad, pay close attention to the window screen on the right to observe how it will appear in the Marketplace as opposed to the News Feed.

To see a larger version of what your ad will look like, click the three dots on the right and choose Expand.

  • mobile Marketplace feed,
  • desktop Marketplace feed, and
  • desktop Marketplace details page. 

You can modify and edit your ad accordingly.

9. Press “Publish”. Your ads will be reviewed, and if they comply with the rules, Facebook will accept them. Then, as users browse the marketplace, they’ll see your ads.

Here is a sample Facebook Marketplace ad.


In the final analysis Facebook Marketplace is fantastic for companies that want to market their goods. You can get a lot of customers there thanks to its huge readership. It’s easy to use and free to set up. This tool also provides targeted ads that can help you increase sales by bringing more attention to your product in the marketplace.

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