Is Dropshipping on Facebook Marketplace Really Profitable?

Are you looking for a new side hustle? We all know that dropshipping is a lucrative industry that can take you from a hobby to a side hustle and onto a full-time gig. It might seem impossible to find a niche or a new way to make a profit with dropshipping. That’s where Facebook Marketplace comes in.

Is it the untapped market for dropshipping, or is it a fad?

At Doba, we have almost two decades of experience in connecting dropshippers with high-quality supplies and products. As a leading dropshipping website, our system integrates with top marketplaces and e-commerce platforms to help you add new products and sync orders seamlessly.

Whether you’re starting a new dropshipping business or thinking of expanding, is Facebook Marketplace really profitable? Read on to find out.

What is Facebook Marketplace?

Facebook Marketplace is essentially like the selling pages of your local newspaper. It allows you to list and sell items on the social media platform, much like eBay or Gumtree. You can sell to other users on the platform, offering either in-person collection or shipping.

We’ve seen a rapid expansion of Facebook Marketplace since 2019 when the platform began to encourage e-commerce stores to sell on Facebook. It effectively took Facebook Marketplace from a consumer-to-consumer platform to a business-to-consumer platform.

Facebook Marketplace has now got 1 billion users with more than one million ‘Shops’ on the platform and 250+ million users who are interacting with these stores every month. Facebook’s parent company – now known as Meta – has been focusing its investment on Facebook Marketplace to make it more accessible for both consumers and businesses.

The pandemic turbo-charged Facebook’s focus on their Marketplace as a new way for them to make profits on their platform. META is even rumored to be working on a way of allowing influencers to establish ‘creator shops’ on Facebook Marketplace.

Does that mean it’s time to utilize Facebook Marketplace for your dropshipping business?  The answer isn’t as straightforward as you might think.

How can you dropship on Facebook Marketplace?

Facebook Marketplace has all the features you need for a dropshipping platform. You can create product listings, reach your target audience, manage your product inventory and orders. You can utilize Facebook Messenger to communicate with shoppers and process payments through Facebook’s onsite checkout.

Essentially, Facebook Marketplace gives you all the features required to run a dropshipping store – with the bonus of being located within o0ne of the most popular social media platforms.

It’s not as straightforward as this though. Online businesses located in the United States can access all these features, particularly onsite check out. You’ll also need to list your products on Facebook Marketplace through one of Facebook’s listing partners.  However, these listing partners include Shopify, one of the most popular dropshipping platforms.

Can I make a profit dropshipping on Facebook Marketplace?

While you can make a profit from Facebook Marketplace, it’s difficult to put a ballpark on the figure. You can utilize Facebook Marketplace to boost the profits from your main website, but you’re likely to make a limited profit if you’re working solely off Facebook Marketplace.

You’ll find it easier to make a profit on Facebook Marketplace as a US business that is using one of the platform’s listing partners. You’ll be able to publish product listings and manage your inventory.

If you’re not operating from the United States, your dropshipping business will have to use the platform just like normal consumers. Although you can’t add a hyperlink to your website in your product listing, you can add your website’s domain to point customers in that direction. You could use Facebook Marketplace to direct visitors to your website to boost your profits that way.

Should I use Facebook Marketplace for dropshipping?

Facebook Marketplace isn’t the right choice for everyone. If you’re a US-based business that is already utilizing one of Facebook’s listing partners, then it can be a great platform to utilize to boost your profits. Otherwise, you won’t be able to take advantage of the features that allow dropshipping to work on Facebook Marketplace. While you can still list products, it won’t be a seamless process.

The Pros and Cons of Dropshipping on Facebook Marketplace

Like everything, there are pros and cons of dropshipping through Facebook Marketplace. Whether you’re exploring dropshipping for the first time or looking to promote your website. Facebook Marketplace offers benefits in both scenarios.

The positives of Facebook Marketplace:

·       You don’t need a third-party website for dropshipping

·       You can utilize Facebook Messenger to communicate with your customers 24/7 and to set up auto-responses.

·       You can take advantage of Facebook’s eagerness to promote their marketplace, meaning that you don’t have to invest in advertising. You can also capitalize on the 2.91 billion monthly active Facebook users.

The negatives of Facebook Marketplace:

·       You’ll need to create a personal profit to list products if you’re not a US-based business.

·       If you’re operating outside of the United States, you won’t currently be able to utilize business features, including onsite checkout.

·       Facebook Marketplace utilizes a location filter, meaning that your product listings will be primarily promoted to a localized audience on Facebook.

·       You won’t be able to add a clickable hyperlink to your product descriptions to direct users to your website. You can add your domain and recommend that visitors shop directly from your website, but this isn’t ideal if you’re planning on only dropshipping through Facebook Marketplace.

While Facebook Marketplace isn’t without its drawbacks, it’s clear that Meta is investing heavily into its marketplace as an up-and-coming B2C selling platform. Getting onto the platform early can help you build a presence and utilize the platform before your competition.

Whether you’re dropshipping on Facebook Marketplace or another platform, you need high-quality products and suppliers. With Doba, we connect talented entrepreneurs with the trending products and suppliers that they need to scale their dropshipping business. Are you ready to take your dropshipping business to the next level? Start your free 30-day trial of Doba today.

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