What is Facebook Marketplace?

Ecommerce & Lead Gen Social Media Article
20 mins

Facebook Marketplace is a digital destination integrated within Facebook where users can discover, buy, and sell items with people in their community and beyond. Think Facebook-meets-Gumtree, but with the added power of business integrations and nationwide shipping options.

Launched in October 2016, Marketplace has evolved from a simple local listings service into a sprawling commerce ecosystem. While many transactions are still arranged peer-to-peer for local pickup, Facebook now plays a direct role in facilitating payments and shipping for a fee, making it a significant player in C2C and B2C e-commerce.

Facebook Marketplace allows you to:

  • Search for items to buy: Find specific items or browse what's available nearby.
  • Browse by category and location: Filter listings to narrow your search.
  • Create detailed item listings: Add photos, videos, descriptions, and prices for items you want to sell.
  • Offer shipping: Sell to buyers outside your local area by offering a shipping option.
  • Message buyers and sellers: Communicate directly to ask questions, negotiate prices, and arrange pickup or shipping.
  • Manage your activity: Keep track of current listings, past sales, and communications in the 'Your Account' section.
  • Preview items with AR: For certain products, you can use augmented reality to see how they might look in your space before you buy.

For local sales, Facebook plays no role in the payment or exchange of goods; users are expected to work that out between themselves, and no fees are charged. However, for items that are shipped, Facebook processes the payment and provides buyer protection in exchange for a selling fee.

The platform is now globally accessible in numerous countries on both desktop and the Facebook mobile app. To sell items, users must be at least 18 years old, though younger users are permitted to browse and make purchases.

For Business

What was once just a rumour is now a fully-fledged sales channel for businesses. Companies can list their product catalogues on Facebook Marketplace, reaching a vast audience of engaged shoppers.

This is achieved by setting up a Facebook Shop and enabling checkout, then adding Marketplace as a sales channel through the Commerce Manager. All products must comply with Facebook's Commerce Policies, which prohibit items like digital services, weapons, and animals.

For shipped items sold through the platform's checkout, a selling fee applies. This is typically 10% of the total sale price (including shipping), with a minimum of $0.80. In the UK, an additional 2% transaction fee is also applied. As of early 2025, sellers are responsible for providing their own shipping labels and tracking information, as Facebook has phased out its prepaid label service.

Since its early days, Marketplace has matured significantly, implementing stricter safety features and evolving into a powerful commerce engine. It now rivals established platforms like Gumtree and eBay, especially for second-hand goods, and has become a key destination for small-scale commerce.

The platform records over 850 million visits per month, with around 16% of all active Facebook users engaging with it. By moving this activity from disparate buy-and-sell groups into a central hub, Facebook has been able to better manage, police, and capitalise upon it. This focus on creating a robust commerce ecosystem reflects the company's wider strategy. As Meta's CMO Alex Schultz discussed on The Digital Marketing Podcast, the future involves leveraging AI and robust measurement to drive growth, a principle clearly at work in the ongoing development of Marketplace.



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