Facebook Marketplace is an online shopping channel. It’s a place for Facebook users to buy and sell from each other locally.
As of May 2018, Marketplace is used in more than 70 different countries by more than 800 million people each month.
So, how to use Facebook Marketplace for your business?
Whether listing merchandise or running adverts, there are lots of opportunities for companies to benefit from the Facebook Marketplace channel.
1. Test with Facebook Marketplace adverts
Whether or not you could list products on Marketplace, adverts with placement in Marketplace are a great way for your business to test the waters.
In an effort to develop its enterprise, BarkBox decided to run a split-test marketing campaign to advertise its monthly dog treat and toy subscription service. They evenly divided the viewers for their adverts between News Feed alone and Marketplace and News Feed placement.
The marketing campaign performed markedly better when adverts were served in both feeds, with 49 % better reach and a 16 % higher conversion rate.
To create an advert in Market, go to Ads Manager and select reach, site visitors, conversions, catalog sales or video views as your goal. Marketplace isn’t at present available as placement by itself. Meaning you need to select Automatic placements or edit placements to include the News Feed and Marketplace in your marketing campaign.
The recommended specs are the same for both spots.
2. Maximize your budget
Since there is no cost to list and no reduce on commissions, Marketplace listings are a budget-friendly method to promote product sales. However, even when you do not have access to list on Marketplace yet, adverts in the shopping channel have resulted in decreased conversion costs for brands.
For instance, to check Marketplace’s impact on cost-per-conversions, Apartment Guide, a rental listing service, arrange a two-week trial. The research found that Marketplace adverts contributed to a 200 % lift in conversions and a 45 % decrease in cost per incremental conversion.
3. Offer daily deals and promotions
Facebook has been experimenting with a Daily Deals function for more than a year, and it is likely to remain an essential piece of the Marketplace channel.
Placement in the deals category translated to 5 times quicker sales for Day by day Steals in contrast with similar provides sold elsewhere. The company additionally saw a two times higher conversion fee when shoppers used Facebook Checkout as opposed to completing the payment on its site.
4. Launch a new product
Buzz and awareness campaigns are multi-platform for a reason. And if one of your targets is to obtain pre-orders or early registration, Marketplace is a great place to gauge early consideration.
To advertise the upcoming launch of Tom Clancy’s The Division 2 Phoenix Shield Collector’s Edition and encourage pre-orders, Ubisoft launched a marketing campaign with adverts in Marketplace. The adverts targeted lookalike audiences based on people who had recently made a purchase at the Ubisoft store and people who had visited its site.
In two weeks the company was able to unlock a thrill-worthy level of buzz, reaching upward of 3.4 million people.
5. Boost your sales
When you run a small or medium-sized enterprise with less-than-perfect online retail setups, Marketplace could be a good alternative. However, even the biggest companies with the slickest sales functions could increase sales by including another distribution channel to their online retail portfolios.
Beach-themed retailer Tropical Breeze Décor turned to Facebook Marketplace to offset expensive customer acquisition ways and streamline operations. The firm now generates 72 % of its revenue from the platform.
6. Think beyond sales
Marketplace excels at conversions thanks to its viewers of motivated consumers. However, sales aren’t the only factor you could do on the channel.
For instance, apartment-rental firm Apartment List used Market adverts to extend registrations on its website. The advert copy targeted shoppers’ mindsets with taglines like: “Moving Soon? We Can Help You Find Your Next Home.”
The Marketplace adverts led to a 17.5 % higher reach than News Feed adverts alone. In addition, they produced a 16 % decrease in cost per site registration.
More importantly, Apartment List was able to forge a long lasting connection with prospective customers.
If you plan your next online retail and social media marketing strategy, be sure that your Marketplace efforts align with your overall targets.