Social media platforms like Facebook, Instagram, and TikTok are extremely popular nowadays. Thus, it’s a smart move to learn how to use these platforms to grow your business. One way to do that is by using Facebook Marketplace.
Facebook Marketplace is an online platform where Facebook users can buy and sell products. It’s available in around 50 countries worldwide. By using this tool, you can reach millions of Facebook users and make a profit for your eCommerce business. Therefore, if you’re a Shopify merchant and you haven’t started using Facebook Marketplace, now is a great time to start.
The Essence of Facebook Marketplace in the Digital Era
Before Facebook Marketplace, people used buy-and-sell groups on Facebook to sell items. It was a simple system where users listed products for sale and marked them as sold when they were bought. However, Facebook Marketplace gave rise to a more comfortable way for sellers and buyers. It was then created to improve user experience as it offers more functionality.
Facebook Marketplace is like a virtual shop where individuals and businesses can sell new or used items to local buyers. It doesn’t handle payments directly but partners with platforms like Shopify to make transactions secure.
With Facebook Marketplace, you can showcase your products and advertise them for free. Here, users can browse through different categories or visit specific stores to find what they’re looking for.
How Does the Facebook Marketplace Work?
Facebook Marketplace works using a very basic concept. Sellers are allowed to list products for sale and indicate their location on the marketplace. When potential buyers looking to purchase these products come to the marketplace to search, Facebook uses the information it has about them to determine their location.
Facebook Marketplace then displays various products that are for sale within their locations. Once a user shows interest in a product and is willing to buy the product, they can contact the seller through Facebook Messenger. They both agree on the mode of payment and the product can be delivered.
This process eliminates the need for the parties involved in the transaction to exchange phone numbers or addresses.
Facebook Marketplace also uses its algorithm to make certain products more visible to buyers, especially if they have previously liked, shown interest, or searched for that kind of product on Facebook or in the Marketplace.
Why Should You Set Up Your Store on Facebook Marketplace
With over 2.9 billion monthly users, the market opportunity that Facebook Marketplace offers is so enormous. This creates a promising environment for small eCommerce businesses. So, Facebook Marketplace has the ability to widen the reach of your business and open you up to a larger audience.
Here are more reasons to sell on Facebook Marketplace:
1. Availability of Various Marketing Tools
eCommerce businesses can access a wide variety of tools on the Facebook Marketplace platform. There are also several marketing tools you can use in automating your sales process. They include chatbots for responding to popular questions and automated responses to inquiries from customers.
2. Ability to Sell to Customers on an Individual Basis
The only way buyers and sellers on Facebook Marketplace can communicate with each other is through Messenger. This means that sellers have to sell to buyers on a one-on-one basis, making the entire process an individualized one. Customers can contact you directly with their questions and you can respond to them in real-time.
This makes it easier to retain them since you can answer their questions directly before they lose interest. It also helps to provide an atmosphere of trust and comfort for the customers, one that makes it easier for them to follow through with a purchase.
3. Personalized Customer Experience
Facebook Marketplace’s algorithm works by showing Facebook users the products most relevant to them based on their actions and activities on the app. This way, businesses can easily find the right customers.
It also increases your chances of conversion because your products are being seen by the right audience.
4. Free Product Listing
Facebook Marketplace is a free platform for sellers to list and manage their products. This means that you can list your products and start managing them for free within a few minutes. This plays an important role in saving you costs and increasing your sales.
5. No Restrictions on Payment Methods
Facebook does not offer a medium that facilitates payment between buyers and sellers. This means that there are no restrictions on the payment methods you can use and you have the freedom to choose from a host of payment methods. Some of the payment methods you can use include bank transfer, PayPal, Shopify Payments, and so on. You can also choose to receive payment in cash.
How to Advertise on Facebook Marketplace?
By listing your products, you make it easier for prospective buyers to discover them, make purchases, and for you to get revenue for your business. However, you can choose to get more eyeballs to your products by using Facebook Ads. Here is how to advertise your products on Facebook Marketplace:
1. Choose Your Ad Objective
Go to the Ads Manager tab and choose your objective. There are different objectives you can choose from, and they are as follows:
- Brand awareness
- Traffic
- Conversions
- Store Traffic
- Lead generation
- Reach
Choose your objective and click on continue.
2. Fill in Ad Campaign Details
The next thing to do is to fill in the details of your ad campaign. This includes typing in the campaign name and selecting the campaign budget optimization. You then have to name the ad set and fill in other necessary details and prompts depending on the ad objective you have chosen.
3. Set Budget
After completing the details of the ad campaign, you have to set a budget. This can either be a daily budget or a lifetime budget for the ad campaign. You then have to specify the amount and select how long you would want your campaign to run when you want the ads to start, and when it should end.
4. Select Your Audience and Placement
When selecting your audience there are two options for you to choose from. You can either choose an Existing Audience or a New Audience.
The next step is to select Automatic Placements. This is the best option if you want to maximize your budget and display your ads where they will get the most attention.
5. Choose Ad Setup and Ad Creative Format
Select where you want your ads to be displayed: this can be on Facebook or Instagram. Then, you choose the ad format. This can either be a single image, a carousel, or a video.
You can type in a headline and insert a little description about the product being advertised under the media. Lastly, you have to write an attractive call to action for the ad.
6. Create a Message
A message template is an opportunity for you to encourage potential customers to contact you after clicking the ads. You can use your message template to start conversations, define custom user experiences, or generate leads.
7. Set up Tracking and Publish
Select the conversion tracking and proceed to publish your campaign. Facebook will review your ads and approve them if they meet their regulations before your ads will be displayed to your audience.
Things to Consider When Selling on Facebook Marketplace
There are a few things you have to consider if you plan on selling on Facebook Marketplace. Here are some of them:
1. Shipping and Delivery Times
As a seller, Facebook requires you to ship all orders within 3 days from when they are made and the customer has to receive them within 7 days. This means you have to ensure you can deliver on these terms. If you run a business that sells handmade or homemade goods, for instance, you may have to be very careful with stating the quantity you have in stock so that you do not have any issues with supply.
2. Effective Communication is Key
Like almost any other sales channel, you will receive loads of questions and messages from buyers and people who are interested in your products. While it might seem like a lot to handle, you have to learn and master the art of communicating with potential buyers.
You should also learn to be patient with your customers while answering their questions in a timely and professional manner. Facebook even rewards effective communication with customers using two different badges.
The first badge is the Very Responsive Badge which is awarded to sellers that respond to all their potential customers quickly. The second is the Community Recommended Badge which is awarded to sellers that have a high rating on Marketplace.
Having these badges can enhance your reputation as a seller on Facebook Marketplace and help customers trust your business the most.
Facebook Marketplace: Conclusion
Facebook Marketplace is a great platform for eCommerce merchants looking to sell their products to a wider audience. It is a free platform that is easy to set up and use. As a Shopify merchant, the ability to integrate Marketplace into your store is even more promising. With Marketplace, you can easily increase your bottom line and achieve your business goals.
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