Starting a profitable eCommerce business is easier than ever before with dropshipping. As dropshipping allows us to sell products without holding inventory, it is a low-risk business model. Moreover, dropshipping on marketplaces is even more profitable because of the readily available organic traffic.
As Facebook allows selling products on its platform, it is one of the most effective selling channels for dropshippers. Generally, dropshippers can sell products on Facebook in two ways: Facebook Shops and Facebook Marketplace. However, we should be aware of the differences between the two.
So, in this article, we will learn everything about Facebook Shops and Marketplace dropshipping. By the end, we will know which platform is the better option for our dropshipping business.
What Is Facebook Shops?
First, let’s begin by introducing Facebook Shops. Facebook Shops is a feature that enables us to create our online store on Facebook and Instagram. This feature allows businesses to list and sell their products through a Facebook page.
Furthermore, we can also communicate with customers through Messenger and WhatsApp. Additionally, Facebook Shops has an integrated payment gateway through which customers can pay for their purchases. With the high-profit potential of the dropshipping model, we can establish a successful business selling on Facebook Shops.
What Is Facebook Marketplace?
Essentially, Facebook Marketplace (FBMP) is an open platform provided by Facebook that works like eBay rather than an individual store. As such, FBMP is a selling channel that simplifies the selling and buying process.
With that said, when we list products along with their details and prices, buyers can find out about the product by searching relevant keywords on the platform. Additionally, they can also inquire, negotiate, and contact owners through Messenger. In essence, it works as a platform that connects buyers and sellers. So, dropshipping on Facebook Marketplace is also a great option if we want free organic traffic and easy communication with customers.
The Advantages & Disadvantages Of Facebook Shops
To further understand Facebook Shops Vs Marketplace dropshipping, we must look at the benefits and drawbacks. With that in mind, here are some pros and cons of Facebook Shops.
The Advantages Of Facebook Shops
- Free organic traffic
- No subscription costs
- Direct engagement with the audience
- Ad targeting
- e-Merchant tools
- Integrates with third-party platforms
- Unified shop
- Facebook checkout feature
- Meta pixel
As Facebook Shops is hosted on the Facebook platform, we can drive free organic traffic to our online store. On top of that, there are no subscription costs. Plus, with Messenger and Whatsapp, we can directly communicate with customers, resulting in a smooth customer experience.
Furthermore, Facebook Shops allows us to access audience data through the Audience Insight feature. This feature enables us to research our target audience to run our Facebook Ad campaigns. Besides that, we can use various e-Merchant tools for promotion, sales, marketing, conversion, and customer support. Moreover, Facebook Shops also integrates with third-party platforms such as Shopify, BigCommerce, and WooCommerce.
Also, we can make our dropshipping store visible on social media apps like Facebook, Instagram, Stories, FB Ads, Messenger, and WhatsApp. Moreover, Facebook Shops offers a checkout feature that allows customers to buy and pay for items directly from the platform.
Finally, Facebook Shops gives us access to Meta Pixel. With this tracking tool, we can
measure the effectiveness of our advertising by analyzing user behavior in our store.
The Disadvantages Of Facebook Shops
- Limited branding
- High competition
- Follow Facebook rules
- Selling fees
On the downside, Facebook Shops offers us limited branding opportunities. As we cannot customize our store’s user interface or add unique themes, it is difficult to showcase our brand.
Nevertheless, we can create a logo and upload it as our profile picture. Or, we can add customized cover images to show our brand identity. Moreover, we also leverage marketing and excellent customer service to establish our brand.
Plus, there is high competition due to the ease of starting and selling on Facebook Shops. Therefore, we must perform product research to ensure that we are selling trending products that are in demand. On top of that, we can also focus on a specialized niche to sell unique products that are not readily available.
In addition, we must comply with Facebook’s eCommerce policies to sell our products through Facebook Shops. Furthermore, we need to pay Facebook fees when dropshipping on Facebook Shops. However, we must pay selling fees for whatever channel we use. Nonetheless, the selling fees of Facebook Shops are one of the lowest in the market compared to other selling channels.
The Advantages & Disadvantages Of Facebook Marketplace
Moving ahead, let’s look at the advantages and disadvantages of Facebook Marketplace.
The Advantages Of Facebook Marketplace
- Broad audience reach
- Simplified buying & selling process
- Easy communication network
- Test best-sellers easily
- Display select items
- Free to list products
- No subscription costs
With nearly 2 billion daily Facebook users, we have a massive audience for our dropshipping products. Plus, the buying and selling process on Facebook Marketplace is very simple. In the same way, communicating with customers is also easy through Messenger, Facebook’s integrated messaging app.
Also, Facebook Marketplace is an excellent platform for dropshippers who want to experiment with products to find best-sellers. Since we can see other sellers’ listings alongside ours, we can easily replace our products with more profitable ones. Alongside this, we can display a selected product through regular posts or ads. As such, we can promote and sell potential winning products with high chances of sales.
Furthermore, there is no listing fee or subscription costs when dropshipping on Facebook Marketplace(FBMP). With that in mind, we can start dropshipping without paying any upfront costs.
The Disadvantages Of Facebook Marketplace
- Selling fee
- Limited customization
- Must abide by FB rules
- High competition
Like Facebook Shops, we have to pay selling fees when dropshipping on Facebook Marketplace. But compared to other selling channels, Facebook Marketplace fees are very minimal. To clarify, Facebook Marketplace only charges 5% or a flat fee of $0.40 per shipment.
On top of that, there are limited customization options, meaning we cannot optimize our stores with unique visuals and personalized interfaces. So, we must do our utmost to showcase branding through product titles, images, and descriptions. Furthermore, we also have to abide by Facebook’s rules and regulations. But those rules are very straightforward, and almost all selling channels have them.
Since the entry barrier for Facebook Marketplace is very low, there is a high level of competition on the platform. However, we can tackle this problem by focusing on a specific niche and offering unique products.
The Requirements To Dropship On Facebook Shops And Marketplace
Before we choose the right dropshipping platform, we also need to explore the requirements for each. With that said, let’s begin with the prerequisites for Facebook Shops Vs Marketplace dropshipping respectively.
Facebook Shops Requirements
The requirements for selling on Facebook Shops (FB Shops) are simple. As such, anyone in the world can start FB shops dropshipping. Additionally, dropshippers can also enable the checkout feature on FB Shops, given they fulfill some requirements.
To enable checkout, sellers must reside in the US and have a US bank account. Plus, they should also have an Employer Identification Number (EIN) or a Limited Liability Company (LLC). However, if we do not reside in the US, Facebook Shops will redirect our customers to a third-party website such as Shopify for checkout.
Facebook Marketplace Requirements
On the other hand, there are some different requirements for Facebook Marketplace. To begin, all sellers on FBMP must be at least 18 years of age. If we reside in the US, we can dropship on FBMP to all US states. In contrast, if we are non-US citizens, we can only dropship items to a single location.
Which Is Best For Dropshipping – Facebook Shops Vs. Facebook Marketplace?
To figure out the best dropshipping platform, let’s have a recap. In essence, both platforms have some similarities, such as low selling fees and plenty of organic traffic. Similarly, both platforms don’t require subscription costs and enable easy communication between buyers and sellers.
Also, both of the platforms offer limited branding options. So, we must use different marketing strategies like boosted listings to promote our products.
However, there are some key differences as well. For instance, e-Merchant tools and Facebook Pixel are available for Facebook Shops and unavailable for FBMP. Likewise, the checkout feature is absent in FBMP, whereas FB Shops allows us to integrate checkout features.
All in all, both of these platforms are great selling channels. With that in mind, the winner of Facebook Shop Vs Marketplace dropshipping depends on what our business needs are. For instance, FBMP can be a better choice for beginners since it offers a simplified selling process without creating any stores. On the other hand, FB shops is a great alternative if we want to establish a long-running business.
But who says we can’t have the best of both worlds? If one selling channel works well for us, the other will likely work well too. Besides, we do not have to invest additional capital if we want to start dropshipping on these selling channels.
Once we choose a suitable selling channel, we can integrate dropshipping automation to scale our business. This is where AutoDS comes into play.
AutoDS is one of the best dropshipping automation software that helps us save precious time and labor by automating manual dropshipping processes. For example, we can automate the product import process with the AutoDS product importing tool. This tool allows us to import single products in one click and bulk products in a few seconds, saving us a great deal of time.
Check out what Paul Lipsky, one of the most successful dropshippers has to say about this efficient dropshipping automation tool:
Moreover, we can also track the product’s price and stock availability with the AutoDS price and stock monitoring tool. With this feature, we can remain up to date on price fluctuations and stock quantities of products. This helps us avoid losses due to price fluctuations and unhappy customers due to stock unavailability.
With such automation features, we can carry out our dropshipping operations more efficiently. As such, we can increase our profits while enjoying a higher level of freedom.
Frequently Asked Questions
What Is The Difference Between Facebook Shops & Marketplace?
Compared to Facebook Marketplace’s basic listing features, Facebook Shops offers plenty of e-Merchant tools for conversion, sales, and marketing. On the other hand, Facebook Marketplace provides an easier buying and selling process.
Am I Allowed To Dropship On Facebook?
Absolutely, we are allowed to dropship on Facebook. However, before we start dropshipping, we must comply with Facebook’s eCommerce policies and seller requirements.
Does Facebook Charge A Fee For Dropshipping?
Whether we are dropshipping through Facebook Shops or Marketplace, there are no listing fees and subscription costs for dropshipping. However, Facebook charges 5% per shipment or $0.40 for items under $8.00.
Is It Better To Dropship On Facebook Shops Or Facebook Marketplace?
Both Facebook Shops and Marketplace dropshipping are great options. Nevertheless, the best one depends on our needs and business strategy.
To summarize, Facebook Shops and Facebook Marketplace are two great platforms for aspiring dropshippers like us. And now, we know about the potential of both of these platforms. With substantial organic traffic on both platforms, we can increase our sales and sustain our business over the long term.
Once we choose a compatible selling channel for our dropshipping business, we can automate it with dropshipping software. With dropshipping software, we can multiply our profits while minimizing our manual tasks.
Overall, there’s no denying that Facebook is a goldmine for dropshippers. So, the sooner we learn, the faster we can take advantage of this opportunity. With that in mind, here are some articles that will help us establish our business through Facebook’s platforms: