Here's Why Facebook Marketplace Died Overnight

Here's Why Facebook Marketplace Died Overnight

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Making money dropshipping on Facebook marketplace was easier than stealing candy from a baby….for a while there.

You can list pretty much any product from any supplier at a significant mark up…. And it would sell organically.

Everyone doing it was raking in massive profits.

Annnddd… then things changed.

Recently, sales on the platform are much harder to come by … and everyone doing this seems to be frustrated b/c theirs just dried up overnight.

But here’s the REAL reason I believe it seems like Facebook marketplace died overnight,

Even when sales we’re at the highest in the beginning, it was still evident to everyone that Facebook was throttle in traffic from the back end.

Whether it was a passing more traffic to newer, just launched sellers….

…Or giving easy sales to Facebook shops when they launched and favoring them over normal marketplace sellers, it’s obvious they’ve been doing this (in some form) for a while.

Which is why I think his explanation makes a lot of sense.

Marketplace and shop sales were booming. And to go from that…. To almost nothing overnight, raises A LOT of questions.

Mainly, why would Facebook CHOOSE to kill something they put so much time, effort, and engineering power into building.

Unless, this was their plan from the start.

He did say hes seen them use this playbook over and over again throughout the years.

From initially giving organic posts, lots of visibility… to then letting the feed get saturated with ads….

To giving business pages tons of reach to their followers…. And ultimately taking that away too…to the point now where you get almost 0 engagement.

…To now marketplace it seems.

Maybe this was their endgame all along.

It’s possible they wanted to build up Marketplace and Shops… and then begin to charge for a Ads, once small, third-party sellers and businesses became more established and said their products up on the platform.

Personal marketplace was their way to take some of the marketshare away from eBay… and make 5% on every sale.

And since dropshippers turned Facebook ads into the Premier way to scale their own businesses on Shopify…

It seems as if FB shops was their reaction to that, and their way to potentially cut out the middleman so Facebook could instead collect the commission on every sale, cut Shopify out entirely, and pass traffic to people who uploaded their products directly to Facebook shops.

And now that a lot of major companies have established shops, there’s thousands and thousands of smaller third-party sellers on marketplace, and customers are a little more used to the idea of buying products directly on Facebook…..

They might be thinking it’s a good time to test killing the organic rich, everyone began to rely on…. And again start charging people for the privilege of reaching customers.

So, if that’s the case, what can you do about it?

I wouldn’t recommend abandoning listing here for organic traffic entirely.

There’s no doubt sales in traffic down significantly. BUT I’m still doing anywhere from $100-$200 in profit per day across my marketplaces and shops.

Which yes, is a far cry from what it used to be…. But that’s still decent money that I’ll gladly take.

I’ve also covered this before in previous videos.

There’s two main things I’d recommend focusing on if you wanna make more sales here.

The easiest one is just change of your suppliers.

Use other suppliers from the most popular ones… And youll differentiate the products the customer see, which can send sales your way, and have you competing in a blue ocean (NOT in race to the bottom pricing against dozens of other sellers also in the same products).

Plus, when a product from one of these suppliers hits, it’ll sell for a lot longer…b/c you won’t have tons of people sniping you, listing it, and undercutting you.

AND you can even create a “moat” around your business by listing from suppliers that don’t integrate with any software.