HomeFinanceFacebook Marketplace to charge for posting items: How does it compare?

Facebook Marketplace to charge for posting items: How does it compare?

Facebook will start charging Marketplace customers that choose to post items directly to other consumers via the platform.

The delivery service, which was first introduced last month, is currently free but will carry a 2 per cent charge as of next year.

Unlike its rivals, Marketplace has always been free for sellers but this is soon to change.

Facebook says the move will give buyers more choice, and enable sellers to reach more people, while the fee – deducted from sales – will help cover the cost of customer support and purchase protection.

Facebook Marketplace will start charging customers who want to deliver items to a buyer

Facebook Marketplace will start charging customers who want to deliver items to a buyer

Sellers will still be able to avoid this charge come January via Facebook’s collection-only option, which will continue to have no added fees.

However, it is perhaps unsurprising it is to start charging as its competitors have long been asking for money from sellers. 

It may also be due to the increase of people buying and selling items online since the pandemic.  

This is Money takes a look at how much other similar services charge their customers.

Marketplace’s biggest rival, Ebay, currently charges customers to list and sell items.

Private sellers can list for free on eBay but after they’ve used their monthly allocation of 1,000 free listings, they will be charged 35p for each new listing created.

Customers then pay one final value fee for items they sell on eBay without having to worry about third party payment processing fees.

The final value fee is calculated as 12.8 per cent of the total amount of the sale.

This includes the item price, postage, taxes and any other applicable fees plus a fixed charge of 30p per order.

If the total amount of the sale is over £2,500 for a single item, customers will pay three per cent for the portion of the sale price above £2,500. 

Ebay & Amazon have long been charging customers who list and sell items on their sites

Ebay & Amazon have long been charging customers who list and sell items on their sites

Amazon Marketplace has both an individual and a professional set of prices.

The individual account is for customers that sell fewer than 35 items a month and don’t plan to advertise or use advanced selling tools.

This costs £0.75, excluding VAT, per item sold plus additional selling fees.

Meanwhile, for the professional accounts, this costs £25, excluding VAT, per month plus additional selling fees.

This is for those people who sell more than 35 items a month, want to advertise their products and want to qualify for top placement on product detail pages.

Professional accounts are also for those who want to use advanced selling tools and want to sell products in restricted categories.

For every item sold, selling partners also pay Amazon a percentage of the total price.

This includes item price, shipping cost, and any gift-wrapping charges or a minimum amount, whichever is greater. 

There are also referral fees which are in addition to the above selling plan fees.

For each category, the price is different. For example, for books, music, VHS and DVD sales, customers will pay a 15.3 per cent referral fee. 

Meanwhile, for jewellery, the fee is 20.4 per cent for the portion of the total sales price up to £225 and 5.1 per cent for any portion of the total sales price greater than £225. 

Shopping: Buying and selling items online has become even more popular since the pandemic

Shopping: Buying and selling items online has become even more popular since the pandemic

Gumtree is free to use and sell on, however, there is the option to promote items.

Prices differ depending on whether you’re posting as a private individual or a business, the category you’re posting in and where you are.

There are also different categories including urgent, featured and spotlight, which gives users various amounts of coverage.  

Meanwhile, businesses are charged a small fee to post ads and use features. 

Unfortunately, there is no set pricing model available so it will be up to individual users to find out how much it could cost. 

Meanwhile, anyone looking to sell clothes on Depop will be subject to a 10 per cent fee. 

The fee will be deducted through your PayPal or Depop Payments account with customers possibly seeing some variations on when the fee is deducted if sold via PayPal, however this will always be deducted up to 21 days after sale. 

There will also be a standard transaction fee of around 2.9 per cent plus £0.30 across Paypal and Depop Payments. 

There may be variations based on your location and PayPal account set up.

If you’re using a Ship With Depop label, the cost of the shipping label will also be taken with the Depop fee.

Top tips for Facebook Marketplace

Last month, deputy editor – and author of book Never Go Broke: How To Make Money Out Of Just About Anything – Lee Boyce revealed how he uses Facebook Marketplace to sell items in his local area and why he loves it so much.

It is an easy and free way to fill the coffers and declutter the home ahead of Christmas. Here are his tips for using it:  

1. Make it part of your day: I only agree to people being able to buy and collect items in my break on the two days of the week I currently work from home, and not evenings or weekends. You’ll have timewasters and no shows, and you don’t want it encroaching on your precious time.

2. Quick listings: Take three or four photographs in good light, it is vital and give it a relatively concise description.

3. Bank the cash: Put the money in your pocket, wallet or purse, and then transfer the money from your main current account into a secondary one. My secondary account is with Starling. That way you’ll see the money stacking up and it’s a great incentive.

4. Price isn’t everything: It is unlikely you’ll sell an item for what you bought it for. Let go.

5. Build contacts on your doorstep: I sold a rocking horse for a fiver that was handed to us by a friend of a friend, and hardly ever used. The buyer was over-the-moon with it and told me she ran a nursery – and she gave me her contact details to send her items we’re listing in advance, to see if they are suitable.

6. It works well in populous areas: If you are in an urban or semi-urban area, the potential buyer base is huge.

7. Stuff that you might not think will sell, could: I listed an old clunky Dyson hoover after upgrading with a new model with no expectation it would sell – after all, it had seen years of use. It sold quickly for £25 after a demo on my doorstep that it worked.

8. Stop binning items: Garages and lofts can become cluttered and the temptation is to just tip or skip it all. Try and make money on it first.   

9. Gradually lower the price: If you list an item for £20 but don’t receive any heat, just lower that price in increments. That way, you’ll have a handle on inventory control. 

10. Cardboard box system: I have a couple of organised cardboard boxes, labelled ‘clothes’ and ‘toys’. Everything I’ve listed to sell is in them, and if a buyer comes, I can find it within seconds.

11. Have no shame: You can collect items that households leave out with those ‘take me, I’m free’ signs, and aim to make money on Facebook Marketplace with it, with a clean up and refresh. It is likely the previous owner just wants rid in a hurry. 

12. Just do it!: You can even list items while watching another episode of a boxset. The thrill of the sale is real. Honestly.   

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