Are you looking to sell goods on Facebook but unsure whether to use Facebook Shop or Marketplace? With Facebook’s two eCommerce features, it can take time to determineecommerce facebook ads agency which one is the right fit for your business. While both Shop and Marketplace allow you to sell products on Facebook, each has different features and requirements that may suit your needs better than the other.
In this article, we will help you decide which platform is best for your business between Facebook Shop vs Marketplace by delving into the following key points:
- #1. Facebook seller fees
- #2. Payment options
- #3. Shipping & fulfillment
- #4. Product promotions
- #5. Customer support
Whether you’re a small business or a large enterprise, read on to find out which eCommerce feature will help you achieve your goals on Facebook.
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Facebook Shops vs Marketplace: At A Glance
If you’re trying to decide between using Facebook Shop and Marketplace, this section highlights their key features and how they differ from each other. We will show you the overall difference between how to sell on Facebook Shop vs Marketplace.
- Sellers upload products on Facebook pages;
- Supports multiple payment options, including debit/credit cards, PayPal, and Facebook Pay;
- Sellers can customize their shop with their own branding and design;
- Sellers manage listing inventory via Commerce Manager;
- Sellers can integrate Facebook shops with an eCommerce platform like Shopify or WooCommerce for easier inventory management;
- Products can reach customers if they follow the business page or see the ads.
- Sellers upload products on the Marketplace using a personal account;
- Buyers and sellers arrange payment outside of the marketplace;
- There is no storefront for customization;
- There are no inventory management tools available;
- Sellers cannot integrate their products into other platforms;
What is Facebook Shop?
Facebook Shop Overview
Facebook Shop, or Facebook Store, is a part of Facebook eCommerce that allows businesses to sell their products directly on their Facebook Page. It was launched in 2020 and has become a popular tool for businesses to reach a wider audience and increase sales.
With Facebook Shop, businesses can customize their Facebook storefront, manage their product listings, and process orders and payments all in one place. For broader reach, Facebook also offers sellers an advertising tool, including targeted ads and boosted posts. Besides, they can support and communicate with their customers via multiple ways, such as commenting, Facebook Messenger, or Whatsapp.
To start using this Facebook shopping feature, sellers need to have a business account. So, how to make a business account on Facebook? First, you just need to create a Facebook business page. But to start selling, your page must have at least 2000 likes. To learn more about building a Facebook Shop from scratch, check our article about how to create a Facebook shop for more details.
In general, Facebook Shop is one of the best selling platforms for businesses seeking to expand their online sales and reach a broader customer base. Nonetheless, before investing resources to build a Facebook shop, sellers should carefully weigh its advantages and disadvantages.
Pros & Cons of Facebook Shop
- Free and easy setup;
- Diversity of payment methods;
- Direct interaction with buyers;
- Ease of advertising;
- Simple shipping process;
- Integration with third-party platforms such as shopify Woocommerce, Bigcommerce, etc.;
- Shop presence across the Facebook family of apps: Instagram, Stories, and WhatsApp;
- Access to Facebook’s Pixel, tracking, and analytics tool;
- No on-site Facebook competition.
- Requirements for selling through Facebook Shops;
- Selling fee per shipment;
- No additional features for listed products;
- Inability to reach customers who aren’t on Facebook.
What is Facebook Marketplace?
Facebook Shop Overview
Facebook Marketplace is another Facebook’s free service for buying and selling a wide variety of used goods locally, which was launched in 2016. Thanks to a large potential base of buyers for sellers, it become one of the most popular marketplaces for selling products.
How does Facebook Marketplace work? Facebook Marketplace allows users to trade everything, some of the best selling items to name here are clothing, collectibles, toys, and garden tools. To sell on Facebook Marketplace, sellers have to have a Facebook commerce profile first. So, what is a commerce profile on Facebook? It simply is a Facebook account used on Facebook Marketplace for business.
Once completing registration for an account, sellers can upload photos of the item, add a description, and set a price to start selling. They can also choose to promote their listings through paid Facebook Marketplace ads.
Buyers can view the product listing and contact the owner to buy, negotiate or inquire about the product. It acts as a site for sellers to connect with buyers and vice-versa. There are no transaction gateways to make payments on the Facebook Marketplace, except for US residents.
Customers can browse listings by category, location, and price; and message sellers directly to ask questions or negotiate prices.
Overall, Facebook Marketplace serves as a platform for sellers and buyers to interact with each other. However, there are no payment methods available on the Marketplace for making transactions.
Pros & Cons of Facebook Marketplace
- Wide reach;
- Built-in audience;
- No Facebook Marketplace fees (such as listing fees, advertising fees, and commission fees);
- Local focus.
- High competition with other sellers;
- Security issue;
- Limited analytics;
- No Facebook storefront for brand building;
- No checkout method on-site;
- No fulfillment center like other marketplaces.
Facebook Shop vs Facebook Marketplace: A Head-to-Head Comparison
At first glance, you might assume that Facebook Marketplace is the go-to destination for all your shopping needs on Facebook, given its name.
However, it’s important to note that Facebook Shop vs Marketplace are launched to cater to different needs and audiences. Here’s a breakdown of how the two features differ.
#1. Facebook seller fees
Both Facebook Shop vs Marketplace offer sellers the opportunity to list their products for free, with the only potential cost being advertising fees. However, there are notable differences between the two different types of Facebook eCommerce.
Listing products on a Facebook Shop is generally free, but additional fees may be associated with using the platform. So, how much does Facebook Shop cost the seller to run and maintain it? Below are some of the possible fees that sellers need to pay:
- Selling fees: Facebook Shop charges a selling fee of 5% per shipment for sales over $8.00 and a flat fee of $0.40 for shipments of $8.00 or less.
- Professional services fees: Some businesses may need to pay for professional services, such as graphic designers or marketing consultants, to build and maintain their Facebook Shop. That can come with additional costs depending on the scope of work and hourly rates.
As a seller, you might wonder: does Facebook Marketplace charge fees like other Marketplaces? As aforementioned, there are no Facebook Marketplace fees for sellers to list their items for sale.
However, if a seller chooses to boost their Marketplace listings by promoting them to a wider audience, Facebook sellers may have to pay for this service. The cost of this service varies depending on the seller’s location and the amount of promotion they choose to purchase.
Additionally, if you are a USA-based seller, you can choose to process payments through the Facebook checkout feature. It may be subject to payment processing fees. It’s important for sellers to review and understand Facebook’s policies and fees before listing items for sale on Marketplace.
#2. Payment options
Though Facebook Shop vs Marketplace may share some similarities in listing products, they offer different payment options available.
In Facebook Shops, the payment options available to buyers may be different depending on the seller’s preferences. However, common payment options include credit or debit cards, PayPal, and Facebook Pay. Facebook Pay is another option. It is a digital wallet allowing users to store payment information and purchase across Facebook products and services.
Facebook Marketplace, on the other hand, allows individuals to buy and sell goods within their local community. Regarding payment options, transactions are typically completed in person, with buyers and sellers arranging payment and pickup of the item. However, Facebook does offer a feature called “checkout on Facebook” for USA sellers who meet one of the following criteria:
- Use one of Facebook’s listing partners to sell products and get those products listed on Marketplace;
- Sell products on Facebook Marketplace from Facebook Shop.
#3. Shipping & fulfillment
Facebook Shop vs Marketplace differs in shipping and fulfillment, as they cater to different types of sellers.
When it comes to shipping and fulfillment for Facebook Shop, businesses have several options to choose from, including:
- Self-fulfillment: With self-fulfillment, businesses handle all aspects of shipping and fulfillment themselves. That includes packing and shipping orders, as well as managing returns and exchanges.
- Third-party fulfillment: Businesses can also work with a third-party fulfillment provider, such as ShipBob or ShipStation. These providers handle all aspects of shipping and fulfillment, including storing inventory, packing, and shipping orders, and managing returns and exchanges.
- Facebook’s shipping options: Facebook also offers shipping options for businesses using Shops. Companies can choose to use Facebook’s shipping program, which allows them to purchase and print shipping labels directly from the platform. Facebook’s shipping program currently just supports shipping to customers shopping on Facebook within the US.
In addition to these options, businesses can set their own shipping rates and delivery times and offer different shipping options such as standard, expedited, or overnight shipping.
Facebook Marketplace offers two main options for shipping and fulfillment: shipping and local pickup.
- Shipping: Sellers selling on Facebook Marketplace can choose to offer shipping for their items and set their own shipping rates. When a buyer purchases an item, the seller will receive a notification with the buyer’s shipping address. Then they will be responsible for shipping the item to the buyer. Sellers can choose their preferred shipping carrier and then purchase and print shipping labels directly from Facebook Marketplace. Facebook offers a shipping label service that allows sellers to purchase and print shipping labels directly from the platform.
- Local pickup: Sellers can also offer local pickup as an option for buyers. With local pickups, the buyer and seller arrange a time and location for the buyer to pick up the item in person. This option is incredibly convenient for buyers who live nearby or want to save on shipping costs.
It is worth noting that Facebook Marketplace does not provide any shipping or fulfillment services for sellers. So, the sellers are responsible for ensuring that items are shipped or picked up on time. Facebook Marketplace also does not offer any options for returns or exchanges, so sellers should be prepared to handle these situations independently.
#4. Product promotions
Both Facebook Shop vs Marketplace offer product promotion opportunities, but they are different in several ways.
With Facebook Shops, Facebook offers businesses different types of ads for promoting their products to a wider audience:
- Facebook and Instagram Ads: Businesses can create ads to promote their products on Facebook and Instagram, targeting specific audiences based on interests, behaviors, demographics, and more. These ads can be created using Facebook Ads Manager, and businesses can set their own budget and ad spend.
- Facebook Carousel Ads: Facebook Carousel Ads are a type of Facebook ad format that allows businesses to showcase multiple products within a single ad unit. Customers can browse through the products and click through to purchase directly from the ad. For your eCommerce, an eCommerce Facebook ads agency can create a perfect ads campaign that raises brand visibility.
- Discounts and Promotions: Businesses can offer discounts and promotions to incentivize customers to make purchases. That can include percentage discounts, free shipping, or buy-one-get-one-free deals.
- Influencer Marketing: Businesses can partner with influencers to promote their products to a wider audience. Influencers can create content featuring the products and share it with their followers, potentially driving more traffic and sales to the Facebook Shop. Influencer marketing companies specialize in connecting businesses with suitable influencers, managing campaigns, and measuring their success.
Facebook Marketplace offers several options for promoting products to potential buyers:
- Optimize listings: One of the best ways to promote products on Facebook Marketplace is to create detailed and accurate listings. It includes providing high-quality product photos, writing detailed descriptions, and setting a competitive price. By doing so, listings are more likely to appear in search results and attract potential buyers.
- Boost Your Listing: Boost Your Listing is a paid feature that allows sellers to increase the visibility of their listings to a wider audience. You will pay fees to have the listing appear higher in search results or to reach a larger audience. This can be an effective way to increase visibility and drive sales.
- Share listings: Sellers can also promote their listings by sharing them on their Facebook page or in Facebook groups. It can help increase visibility and reach a wider audience.
#5. Customer support
Sellers can support their customers through Facebook Messenger in both Facebook Shop and Marketplace. Still, there are some key differences between Facebook Shop vs Marketplace in terms of support methods available on each platform.
Facebook Shops allow sellers to provide customer support in a few more different ways. Sellers can communicate with customers via messages, comments, or reviews in the Shop.
Businesses that use Facebook Shop often have a dedicated team of customer support representatives responsible for providing customer assistance and support. Sellers can also use the Shop’s built-in customer support tools to respond to customers’ messages quickly and efficiently.
Like on Facebook Shop, sellers of Facebook Marketplace can offer support to their customers through Facebook Messenger or the comments section of a listing. However, there is no dedicated support team for sellers on Facebook Marketplace, so sellers are responsible for managing customer inquiries and resolving any issues.
Facebook Shop vs Marketplace: Which One Should You Choose?
Regarding selling on Facebook, both Facebook Shop vs Marketplace are beneficial for sellers. But to decide which is better, sellers must be aware of their business’s different sizes and experience levels.
These people are starting with eCommerce, so Facebook Marketplace is a better option. This platform is free to use and offers a simple, user-friendly interface that makes it easy to list products and manage orders.
Sellers who sell on the Facebook Marketplace can reach a large audience of potential buyers who are already using Facebook, making it an excellent way to test the waters of online selling without investing much time or money. Additionally, Marketplace is a great option for sellers looking to offload items they no longer need, such as used furniture or clothing.
For small businesses
Facebook Shop may be a better option for small businesses who want to increase their online presence and reach a wider audience. While there is a cost associated with running and maintaining a Facebook Shop, this Facebook shopping feature offers more advanced and customized options than Marketplace.
With a Shop, sellers can create a branded storefront that showcases their products more professionally. Facebook Shop also offers integrated payment processing and shipping options, making it easier for small businesses to manage their eCommerce operations in one place.
It also comes with more powerful tools for marketing and advertising, which can help small businesses reach new audiences and drive more sales.
For larger businesses
For large companies, Facebook Shop might be the optimal choice since it offers more advanced features that suit their needs, such as:
- Access to more detailed analytics and reporting;
- Ability to create targeted advertising campaigns based on customer data;
- And the ability to integrate with existing eCommerce platforms.
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Overall, Facebook Marketplace is a great option for beginners just starting with selling online. At the same time, Facebook Shop is ideal for small and large businesses that want to create a more customized and branded online storefront. Ultimately, the choice between Facebook Marketplace and Shop will depend on each business’s specific needs and goals.
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Facebook Shop vs Marketplace: FAQs
- Is Facebook Shop the same as Marketplace?
Facebook Shop vs Marketplace are not the same thing. Facebook Shop is an online store feature that allows businesses to set up a storefront on Facebook and sell products directly to users. Marketplace, at the same time, is a peer-to-peer platform for buying and selling goods between individual users. While both features allow for buying and selling, they serve different purposes and cater to different types of users.
- What's better than Facebook Marketplace?
There are several online marketplaces that offer similar or better experiences for buying and selling goods than Facebook Marketplace. Some popular alternatives to Facebook Marketplace include eBay, Amazon Marketplace, Craigslist, and Etsy. Each of these platforms has its own strengths and weaknesses, so the best option will depend on your specific needs and preferences.
- How to use Facebook Marketplace without a Facebook account?
Unfortunately, it is not possible to use Facebook Marketplace without Facebook. Facebook Marketplace is an integrated feature of Facebook, and as such, it requires users to have a Facebook account to access it.
The Marketplace is designed to provide a safe and secure platform for buying and selling goods. Therefore, it requires users to have a Facebook commercial profile to ensure accountability and transparency.
If you do not have a Facebook account, you can create one for free by visiting the Facebook website and following the simple sign-up process. Once you have a Facebook account, you can easily access and use Facebook Marketplace.
In conclusion, both Facebook Shop and Facebook Marketplace can be effective platforms for businesses to sell their products online. Facebook Shop offers more customization options and a seamless checkout experience, while Facebook Marketplace provides a quick and easy way to connect with local buyers.
The choice between the Facebook Shop vs Marketplace will depend on the specific needs and goals of each business. We hope that this comparison has aided you in making a well-informed choice on which platform to use the Facebook shopping feature for your online business.
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