How To Advertise A Business On Facebook Marketplace

Facebook Marketplace is increasingly being recognized as a selling platform similar to major e-commerce sites. So why not take advantage of this feature to boost your sales?

One of the most effective but often overlooked ad placements is Facebook Marketplace Ads. Ads shown on Marketplace tend to have a higher conversion rate, as they reach people who are already browsing with purchase intent.

Yet many businesses still haven’t tapped into the full potential of this free and high-performing tool from Facebook.

In today’s article, we’ll explore:

• What are Facebook Marketplace Ads?

• Which types of businesses should use them?

• How can you create Facebook Marketplace Ads effectively?

Let’s dive in.

What is Facebook Marketplace Ads?

Facebook Marketplace Ads are a type of ad that appears within Facebook’s Marketplace platform. Facebook Marketplace is a platform developed and integrated directly into the Facebook app. It allows sellers to list and sell products whether new or used directly on the platform. As long as the item is legal and complies with Facebook’s Community Standards, you are allowed to list it for sale.

On Facebook Marketplace, in addition to listing products, you can also promote those listings or create dedicated ad campaigns to appear in this space. Ads that appear on Facebook Marketplace are often considered to be reaching an audience with higher purchase intent compared to other Facebook ad placements.

What to sell on Facebook Marketplace?

You can sell a wide range of physical products on Facebook Marketplace from clothing and shoes to electronic devices as long as they are tangible items. Intangible products and services are not permitted on the Marketplace.

However, all listings must comply with Facebook’s Commerce Policies. Certain products are strictly prohibited from being sold on Facebook Marketplace, including:

• Illegal drugs, prescription medications, or recreational substances

• Tobacco products and anything related to tobacco

• Unsafe dietary supplements

• Weapons, ammunition, or explosives

• Animals

• Adult products or services

• Alcohol

• Health-related items intended for adult use

• Real-money gambling services

• Items, content, or posts that Facebook deems fraudulent, misleading, deceptive, or offensive

• Items with sexually suggestive or explicit imagery

• Digital subscriptions, intangible items, or posts not intended to sell a product or service

• Products or items that facilitate or promote unauthorized access to digital content

Make sure to review Facebook’s policies carefully before listing your products to avoid rejection or removal.

How does Facebook Marketplace work?

Facebook Marketplace operates as a product listing platform. Sellers upload their products with images or videos along with key details such as price and product description. They are also required to provide their location. This location data helps Facebook display the listing to buyers within that specific area when they browse Marketplace or search for similar items.

In addition, sellers can include other transaction-related information, such as delivery or pickup options.

Facebook's goal is to provide a free platform that connects buyers and sellers. In the past, Facebook offered its own shipping service, but as of now, buyers and sellers must arrange delivery themselves. Facebook simply acts as the connector between the two parties.

Advantages of Using Facebook Marketplace Ads for Businesses

Facebook Marketplace can be considered one of the most promising ad placements on the platform. It allows you to reach users who are already in a buying mindset and even those who are physically near your business.

Reach Local Customers

The Facebook Marketplace algorithm prioritizes showing listings that are located near the buyer’s area.
So, if you list a product or run an ad targeting a specific location, your chances of reaching the right audience are higher compared to other placements.
With Facebook Marketplace ads, you can attract local customers to visit your physical store or even convert them into online buyers.

Reach High-Intent Audiences

Facebook Marketplace is one of the few placements where you can engage with users who have a high purchase intent.
Users on Marketplace are often actively searching for products, meaning they already have a clear buying need. Therefore, advertising on Marketplace gives you a greater opportunity to convert users into customers.

How To List Products On Facebook Marketplace

All you need is a Facebook account to list products on Facebook Marketplace.

Step 1: Go to Marketplace on the Facebook platform.

Step 2: On the left-hand menu, click “Create New Listing.”

Step 3: Choose a listing type that matches the type of product you’re selling.

Step 4: Upload photos or videos of the product, then fill in the required details such as:

• Product name

• Description

• Price

• Category

• Condition

• Location

Step 5: Click Publish.
Your listing will be submitted for review. Once approved by Facebook, your product will appear on Facebook Marketplace.

How To Advertise On Facebook Marketplace

You can advertise on Facebook Marketplace in two ways:

Method 1: Boost an existing product that has already been listed on Marketplace
Method 2: Create a regular ad in Ads Manager and select Facebook Marketplace as the placement

In the following section, we’ll walk you through each method step-by-step so you can effectively advertise on Marketplace.

Create An Ad For A Product Listed On The Marketplace

Method 1: Boost a New Listing on Facebook Marketplace

If you want to advertise a product that hasn’t been listed on Marketplace yet:

1. Create a new listing on Facebook Marketplace by entering all necessary product details.

2. Before publishing, check the box “Boost listing after it’s published.”

3. Click Publish to post the listing.

4. On the next screen, complete your ad settings including daily budget and payment method.

5. Click Publish again to launch your ad.

Once approved, your listing will automatically start running as an ad on Facebook Marketplace.

Method 2: Boost an Existing Listing on Facebook Marketplace

If your product is already listed on Facebook Marketplace:

1. Go to “Your Listings” on Marketplace.

2. Select the product you want to promote.

3. Click on the three-dot icon (⋯) and choose “Boost Listing.”

4. In the next step, fill in all required details such as your daily budget and payment information.

5. Click Publish to launch your ad.

Creating a Facebook Marketplace Ad Using Ads Manager

Step 1: Go to Ads Manager
Step 2: Click on “Create New Campaign”
Step 3: Choose your campaign objective.
You can select ad objectives like Sales or Conversions. However, when creating ads through Ads Manager, you can also choose other objectives such as Traffic (Clicks) or Brand Awareness.
Step 4: Set up the remaining ad details as usual including budget, target audience, etc.
Step 5: Under the ad Placements section, you’ll have two options: Advantage+ placements or Manual placements.

• If you choose Advantage+ placements, your ad will automatically appear across multiple placements, including Facebook Marketplace.

• If you prefer to show your ad only in specific placements, you can turn off Advantage+ placements and manually select Facebook Marketplace under the Feeds category.

Continue filling out the remaining ad settings and publish your campaign just like any other Facebook ad.

How Much Does It Cost to Sell Products on Facebook Marketplace?

Listing Fee (Insertion Fee):

Completely free, you can list unlimited items without any charge.

Selling Fee:

This applies only if you choose to ship items using Facebook’s shipping system.
Facebook charges 5% of the total sale amount, or a minimum of $0.40 for orders under $8.
This fee is automatically deducted once the transaction is completed.

• Example: Sell an item for $20 → Fee is $1

• Sell an item for $5 → Fee is $0.40

Payment Processing Fee:

Included within the selling fee. This covers credit card processing, customer support, and purchase protection services.

Shipping Fee:

Facebook does not charge a shipping fee. However, you must cover the shipping cost yourself or have the buyer pay it, depending on your settings.
(If using prepaid shipping labels, the cost depends on weight, destination, etc.)

Chargeback Fee (Dispute Fee):

If a buyer disputes a purchase and the bank approves a chargeback, you’ll be charged an additional $20 fee.
Note: The original selling fee will not be refunded.

Advertising Fee (Meta Ad Fee):

If you choose to boost your product listing via Facebook Ads, you’ll be charged based on ad auction factors such as:

• Bidding strategy

• Target audience

• Ad objectives

• Format and placement

Want to Sell for Free?

The listing fee is 0₫ and there’s no fee if you opt for local pickup and cash payment.
To avoid all fees, simply sell locally and manage delivery and payments directly with the buyer.

How Much Does It Cost To Advertise On Facebook Marketplace

Advertising on Facebook Marketplace can be surprisingly affordable, especially for small businesses and individual sellers. The good news? Listing products on Facebook Marketplace is completely free. You can post as many listings as you like without paying any fees making it a low-barrier platform to showcase your products locally.

However, if you want to increase visibility and reach more potential buyers, you can choose to “boost” your listing by paying for ad placement. Here’s a breakdown of the typical costs:

Boosted Listing Costs

Boosting a Marketplace listing is similar to running a Facebook ad. You set a daily or lifetime budget depending on your goals. The cost can vary, but typically ranges from:

• $5–$50 per boost for small sellers

• $20/day for mid-size businesses

• $300–$1,500/month for larger campaigns with consistent traffic goals

CPC & CPM Rates

When running Marketplace ads through Facebook Ads Manager, you’ll pay based on clicks or impressions. On average:

• CPC (Cost per Click): $0.50–$2.00

• CPM (Cost per 1,000 Impressions): $5–$15

These rates may fluctuate depending on your audience targeting, competition, ad quality, and time of year.

Transaction Fees (Optional)

If you offer shipping and use Facebook Checkout, there is a 5% transaction fee per sale (minimum $0.40). However, if you complete transactions outside the platform (e.g., cash on delivery), no fees apply.

Best Practices for Budgeting

Start small: A $5/day budget is enough to test performance.

If you're new to Facebook Marketplace ads, it's smart to begin with a small daily budget like $5. This allows you to test how well your ads perform without overspending. Within a few days, you’ll gather enough data on impressions, clicks, and engagement to see what’s working before committing to a higher budget.

Use precise targeting: Narrow your audience to reduce CPC

Targeting a specific audience helps your ads reach people who are most likely to buy. Instead of showing your ad to everyone, narrow it down by location, age, gender, or interests relevant to your product. This focused approach increases relevance and lowers your cost-per-click (CPC), making your ad spend more efficient.

Monitor performance: Adjust budget based on conversion data, not just reach

Many advertisers make the mistake of focusing only on reach or impressions. However, what truly matters is how many people actually click, message you, or make a purchase. Track these metrics closely and reallocate your budget to ads that generate real results, not just views.

Leverage free listings for local buyers: Only boost when necessary for more visibility

Facebook Marketplace already shows your listings to nearby users for free, which is ideal for local selling. Before spending money on boosting, let your organic post run for a few days to see how it performs. If it doesn’t get enough visibility or engagement, then consider boosting to reach a wider audience.

In short, Facebook Marketplace offers both free and paid options to suit different goals and budgets. Whether you’re just starting out or scaling an e-commerce business, the platform gives you flexible advertising tools at a relatively low cost.

Conclusion

Creating ads on Facebook Marketplace is simple and only takes a few steps. You can create ads directly from Ads Manager or even boost existing listings directly on Marketplace.

As of now, sellers on Facebook Marketplace are not required to pay any fees (aside from advertising costs).

Facebook Marketplace ads are ideal for businesses looking to reach local audiences or users who are already in the consideration or purchase stage.

However, creating ads that effectively reach the right customers is not always easy. If you need support with Facebook advertising or are looking to rent an ad account, don’t hesitate to contact us.