Facebook Marketplace Explained
Marketplace is a new feature that allows Facebook users to buy and sell items amongst themselves. Users simply list items with a price and description and interested parties message them via Facebook Messenger.
But this article isn’t about turning Facebook into a garage sale.
Here’s how your business can drive sales with Facebook Marketplace.
Driving Sales As A Seller
As of now, there are three main ways you can drive sales on Marketplace.
- List their products in the Facebook Marketplace Shop
- Become a Facebook Marketplace Deals Partner
- Advertise on Facebook Marketplace
To utilize the Facebook Marketplace Shop, US-based companies can apply, so long as they:
- Sell new products
- Can fulfill orders within three days and (and customers can receive in seven days)
- Accept returns up to 30 days
- Add product listings that include a name, description, additional product images, and a thumbnail image on a solid background. No graphic overlays, text, icons, or badges should be on images.
Many industries can sell on Marketplace, but these industries take priority:
- Kids Accessories
- Home Decor
While Facebook doesn’t take direct commissions from sales, they do, require Facebook Checkout Integration, which charges roughly a 3% fee. Not bad, considering some alternatives.
Businesses can also apply to the deals program, which requires “deals” to be at least 15% below the MSRP price. This is a great way to get brand exposure!
The best categories for Daily Deals are as follows:
- Toys & Games
- Sports and Outdoors
Simply open your Facebook Page Show, launch your product collection, and get to it!
Driving Sales With Ads
As of 2018, Facebook added Marketplace as a new option for ad placements.
In this case, ads are shown to people browsing similar things on Marketplace, so it’s different than simply listing items.
To master this placement, it’s all about sending the right message at the right time.
To do that, you have to get into the customers’ head.
Ask yourself these questions.
- What is the specific purpose of this ad?
- Should viewers be familiar with my brand to understand the value of my offer?
- How aggressive is my message?
- Can this ad be effective as a standalone, or is it better used in a funnel?
- Who is the perfect viewer for this offer?
Answering these questions will help you better understand the perspective of your potential customers.
Understand The User Experience
There are typically two main types of Marketplace shoppers.
Shopper #1: The Marketplace Researcher
These people are looking for a competitive price on something specific. They’re likely also searching other platforms like eBay, Craigslist, and LetGo.
Sense of Urgency: High
Motivation to Buy: High
Shopper #2: The Marketplace Browser
These people are looking around for things that might catch their interest. Marketplace Browsers are typically killing time and use Marketplace like a digital thrift store.
Sense of Urgency: Low
Motivation to Buy: Low
Boost Sales With Facebook Marketplace
The Effect of a Good Ad
Depending on what you’re selling, the offer (or message) should be positioned for someone looking for a deal. Referencing the two types of Facebook Marketplace users, you can create a theme for each.
Shopper #1 (The Marketplace Researcher) already knows what they’re looking for and is more inclined to make a purchase faster. This person doesn’t want to miss a good deal, so leverage FOMO by creating a high sense of urgency “while supplies last”.
There’s a chance they need what they’re looking for by a certain time, so emotional appeals can be an effective method for getting them to convert.
Shopper #2 (The Marketplace Browser) isn’t in a rush to buy anything, so there’s no need for an aggressive approach. It’s often best for more generic, brand-oriented ads with messaging geared more towards their interests, rather than promoting a specific offer.
Optimize For Marketplace
Don’t just add Marketplace as an additional placement, optimize your messaging specifically for Marketplace!
You want your ad to blend in with the rest of the entries, sort of like a native messaging approach. A good ad should never look (or feel) like an ad! Don’t overpolish your image or messaging, and instead go with more of an organic feeling, as if they’re buying from a neighbor.
Facebook Marketplace offers a unique way for people to buy and sell their things to other Facebook users. Is your brand capitalizing on this new feature? If not, feel free to contact the experts at Active Web Group to get yourself on the right track. Can’t wait? Give us a call at 800-978-3417.