Why Facebook Marketplace is a Good Place to Sell
Facebook Marketplace is fast becoming a leader in the online seller’s space. Amazon is getting some competition in this area, especially with regard to overall fees. One reason for this is that Amazon has recently announced a 5% “fuel and inflation” surcharge for its sellers. While Amazon is still one of the best platforms for sellers in the online marketplace, Facebook is gaining traction over Amazon in this area. In this article we will discuss why FB Marketplace is such a great place to sell, and why it should be added to your multiple streams of eCommerce selling.
To give you the basics of the ‘why’s,’ we’ll start with a
- In 2021, FB Marketplace reached over 1 billion users
- FB Marketplace ads reach a total of 562 million people
- It had over 26 billion dollars of total revenue, an increase of 48% over 2020
The statistics make a compelling argument for why Facebook Marketplace is becoming essential for small eCommerce business owners. This dramatic growing trend is expected to continue and more businesses will be joining the foray in the years to come. It behooves every eCommerce business owner to adapt by creating their own seller page on FB and finding their target customers.
Should You Spend Money to Advertise on FB Marketplace?
People who shop FB Marketplace discover and purchase products in their local communities and from businesses in their local area. Every day, millions of shoppers interact with sellers on the platform, which means there is lots of traffic that will see your advertisement. Here are a few reasons why advertising is a good idea. The money you spend on FB ads would be well spent compared to spending money on Amazon’s various seller fees.
Reach Active Customers
Facebook will now allow businesses to extend their regular FB ads on the News Feed to the Marketplace. This will allow them to target people to are actively shopping and are more likely to convert to paying customers. These potential customers will see your ads alongside other relevant products within the marketplace.
Scalability of Ads
When you are a part of the FB family, you can easily scale your ads across all Facebook platforms, effectively leveraging the same targeting, automation, and optimization software. When sellers create a new FB ad campaign, there is the option to enable automatic payments. It will allow the ad to appear across all FB apps and platforms, including News Feed, FB Marketplace, Instagram, and Messenger.
Build Customer Relations & Trust
Online purchases enable trust. Most of the time, a potential customer will look at the rating or past customer reviews of a product or seller in order to determine if that product is worth buying. This is how a seller builds trust with the customer. FB Marketplace is a great forum in which to inspire this trust.
A Word About Seller’s Fees Amazon vs. FB Marketplace
With Amazon’s recent announcement of the “fuel and inflation surcharge,” this is most likely a consequence of recent rising fuel costs. The only real advantage Amazon has over Facebook is its quantity. It is much easier to sell large amounts of products on Amazon. The catch to this, however, is that Amazon charges a monthly fee to all professional sellers that sell more than 40 units per month. Compare this to Facebook’s 5% fee on each transaction (a minimum of $0.40 per item) and you may come to realize the FB Marketplace is a very attractive option for smaller sellers.