Is Dropshipping really worth it? Should I start it or not?
People often have multiple doubts related to dropshipping like whether is it growing or not, but the truth is quite the opposite.
In this article, we will talk about mastering Facebook marketplace dropshipping and share expert tips for success with you. Also, as a bonus, we will also share the best e-commerce platform in Pakistan.
What is Marketplace?
Facebook Marketplace, often referred to as "FB Marketplace," is an online platform created by Facebook that allows users to buy and sell a wide variety of goods and services within their local community.
It essentially serves as a virtual marketplace where individuals and businesses can list items for sale, search for items they want to buy, and communicate with potential buyers or sellers.
How Does Facebook Marketplace Dropshipping Work?
Professional sellers on Facebook Marketplace now have more opportunities to make money.
In the US, they can use Facebook Pay and Facebook Checkout to let customers pay directly on the platform.
There are also Order Management tools for integrating with Shops on various platforms.
Outside the US, you can still benefit from Marketplace, but your listings will only show to nearby users.
You'll need to handle payments yourself. If a customer is interested, they'll message you with questions. When they're ready to buy, you'll guide them to your preferred payment method, like sharing your account number or PayPal link.
What’s the average dropshipping success rate?
Many dropshipping experts estimate that only 10% to 20% of dropshipping businesses really do well. However, what "success" means varies from person to person, and it's up to you.
If you consider success as making $1 million a year with your dropshipping store, it might take a while. But if you're content with six figures, many drop shippers earn $100,000 yearly with the right suppliers and brand-building.
Some think dropshipping is a quick way to get rich, but it's not. Achieving success means putting in hard work and time to make your business profitable.
How to Dropship on Facebook Marketplace - A Step-by-step Guide
Dropshipping means you connect customers to a product as the middleman. Customers order from you, you tell the supplier, and they send it to the customer.
Marketplace is where customers find your product listing, a great place for sales without needing your own website. If you have a shop, it's an extra advantage. Facebook's Marketplace had over 1 billion users in Q1 2021.
Just choose a product, list it on the Marketplace, and get orders. Few drop shippers use Marketplace, so there's a big customer base for potential sales.
Here are some rules of Marketplace;
- You need an active Facebook account.
- Be 18 or older.
- Be honest in your listing descriptions and pictures.
- Don't sell prohibited stuff like alcohol or adult products.
- No event tickets, gift cards, or vouchers.
- In the US, product prices must be between $5 and $500 for commercial Marketplace tools.
• Pros and Cons of Facebook Marketplace Dropshipping
Before steeping your foot in dropshipping, let's learn the advantages and disadvantages of Facebook Marketplace Dropshipping;
- Easy to sell various products, with no need for specialization.
- No fees for sellers, it's free.
- Good for advertising with integrated Facebook Ads.
- Safe transactions with Facebook's payment system.
- Wide reach and free traffic through Facebook's algorithm.
- Great for beginners as you can dropship without a website.
- Simple customer service, Customers can message you directly.
- Funds take 15-20 days after marking items as shipped or five days after delivery.
- Need extra money upfront to pay suppliers for initial orders.
- List products one by one, with no bulk listing tool.
- Harder to automate.
- Not global, only local outside the US or nationwide within the US.
- Can be time-consuming with multiple suppliers (managing listings, prices, and stock).
Expert Tips for Successful Facebook Marketplace Dropshipping
Here are some tips & tricks to gain excellent results in Facebook Marketplace Dropshipping;
1- Niche Selection:
Choose a niche based on market research and trends.
2- High-Quality Images:
Add high-resolution product images. According to Facebook, listings with clear images receive 20% more messages.
3- Competitive Pricing:
Analyze competitors' prices and set competitive rates. Ensure your prices cover product costs, shipping, and a reasonable profit margin.
4- Detailed Descriptions:
Write comprehensive and accurate product descriptions. Listings with detailed information tend to attract more buyers.
5- Customer Service:
Respond promptly to inquiries and address customer concerns professionally. Positive customer interactions can lead to repeat business.
6- Inventory Management:
Use inventory management software to track stock levels in real-time. Avoid overselling, which can lead to customer dissatisfaction.
7- Optimize Listings:
Use relevant keywords and tags to optimize your listings for search visibility. It will improve your products' chances of showing up in user searches.
8- Ad Budget:
Allocate a portion of your budget to Facebook Ads. Facebook's advertising tools allow you to target specific demographics and interests, making your ads more effective.
9- Product Testing:
Experiment with various products to identify top sellers. Analyze sales data to determine which items generate the most revenue.
10- Shipping Reliability:
Offer reliable shipping options with clear delivery times. According to a survey by eMarketer, 52% of online shoppers consider fast and reliable shipping a crucial factor in their purchase decision.
11- Feedback and Reviews:
Encourage satisfied customers to leave positive feedback and reviews. Positive reviews build trust and credibility.
12- Stay Updated:
Regularly check for updates and policy changes on Facebook Marketplace. Staying informed ensures you comply with the latest rules and features.
13- Financial Management:
Keep a close eye on your finances. Monitor cash flow, expenses, and profits to ensure your business remains financially healthy.
14- Competitor Analysis:
Continuously analyze your competitors' strategies. What products are they selling? How do they market them? Learning from competitors can provide valuable insights.
Also, we advise you to plan for scalability as your business grows. Consider automation tools, additional staff, or outsourcing tasks to meet increasing demand.
Facebook Marketplace Dropshipping FAQs
Below are some FAQs related to Facebook Marketplace Dropshipping;
1- What payment methods are available on Facebook Marketplace?
In the United States, you can use Facebook Pay, which accepts payment methods like debit/credit cards (Visa, Mastercard, American Express, Discover) and PayPal.
For the rest of the world, payment methods are typically arranged directly with the buyer via Messenger. These transactions do not go through Facebook's payment system but are agreed upon independently between the parties involved.
2- What are the fees?
There were generally no fees for listing or selling items on Facebook Marketplace. However, Facebook may introduce fees or premium features for businesses in the future, so it's essential to check for any recent updates on their fees and pricing policies.
3- What product categories are there?
Facebook Marketplace offers a wide range of product categories, including:
- Clothing and Accessories
- Home and Garden
- Toys and Games
- Books and Music
- Jobs and Services
- and many more.
4- Which products are not allowed?
Certain products are not allowed on Facebook Marketplace, including but not limited to:
- Adult products
- Event tickets
- Gift cards and vouchers
- Weapons and explosives
- Drugs and prescription medications
- Counterfeit or fake items
- Stolen goods
- Hazardous materials
- Animals and pets (with exceptions for adoption listings)
What Other Platform do I have for Dropshipping?
In Pakistan, we have Markaz as the fastest-growing dropshipping community which has over 2 million+ downloads today. Markaz is a Pakistani online product reselling/ dropshipping platform where sellers can sign up for an account through the official Markaz Android app. They sell products by listing them (*with a profit margin of their choice, on different channels, such as WhatsApp, Instagram, Facebook groups, etc.
- Markaz is a relatively new and emerging e-commerce platform that is gaining attention as a viable option for dropshipping.
- It allows sellers to list and sell products without holding inventory, making it a dropshipping-friendly platform.
- Markaz offers 100,000+ products and a growing customer base, providing opportunities for drop shippers to reach a wide audience.
- The platform may offer features such as integrated payment processing and shipping solutions to streamline the dropshipping process.
- Markaz, like other platforms, requires careful product selection, competitive pricing, and effective marketing strategies to succeed.
In today's world, many people are actively seeking opportunities to support their income, and one such option that stands out is dropshipping.
What makes dropshipping particularly appealing is that it doesn't demand an initial investment, and you have the flexibility to start it virtually anywhere, at any time.