Are you in search of a way to boost your income, especially with the ever-increasing living expenses?

Do you have items lying around at home that you no longer need, taking up valuable space? Selling your gently used items on Facebook Marketplace might just be the answer you’ve been seeking.

With approximately two-thirds of the UK population actively using Facebook (totalling around 45 million people), and over three billion users worldwide, it’s no surprise that Facebook marketplace has become a popular platform for buying and selling items.

In the UK alone, more than 40% of people are reported to use Facebook daily. 

Given this widespread usage, countless businesses and individuals from diverse backgrounds and age groups utilise Facebook marketplace can be used to sell both new and pre-loved items. So, how does it all work, and what’s the key to success when navigating Facebook Marketplace?

What is Facebook Marketplace?

Launched in October 2016, Facebook Marketplace swiftly gained traction as a competitor to platforms like Gumtree, Craigslist, and eBay. Serving as Facebook’s “classified-ad” section, it provides account holders—both individuals and businesses—the opportunity to sell a wide array of new and used products, primarily within local communities but also extending further afield.

Facebook Marketplace distinguishes itself from Facebook Groups, where sellers must first locate and join local buying/selling groups before listing items. Notably, there are no listing fees associated with selling on Facebook Marketplace.

Facebook’s platform boasts a diverse range of popular items, including clothing, shoes, accessories, small furniture, home decor, children’s toys, musical instruments, electronics, tools, vehicles, pet supplies, and garden-related products.

However, certain items are prohibited from sale on Facebook Marketplace for various reasons.

Arranging meetings with buyers

When selling on Facebook Marketplace, coordinating with buyers to finalize transactions is essential. These arrangements typically occur through Facebook Messenger, facilitating communication and potential inquiries about listed items.

For those uncomfortable with buyers visiting their homes, meeting in secure public locations is an option.

During these encounters, if the buyer approves of the item, payment methods such as cash, PayPal, or online transfers are accepted. Additionally, shipping items to buyers is feasible, albeit incurring extra charges.

How to list items on Facebook Marketplace

Any Facebook user within a 100-mile radius can view your listing, but they will only have access to the information you have made public on your profile, which should not include your address or phone number.

To create a listing on Facebook Marketplace:

1. Click on the Marketplace icon, resembling a small shop, in the Facebook app or on the left-hand side of the Facebook website.
2. Then, select the “Create New Listing” button.
3. You will be prompted to choose the listing type. Opt for “Item For Sale” (other options include “Vehicle For Sale,” “Home For Sale Or Rent,” and “Job Opening”).
4. Next, you can upload up to 10 images of the item you’re selling directly from your phone. Alternatively, you can upload a video to better demonstrate certain items.
5. Enter a title, description, price, and your location (town or city, not your precise address).
6. Select a category for the item you’re selling (e.g., Clothing & Accessories, Classifieds, Electronics, Entertainment, Family, Hobbies, etc.) and describe its condition.
7. Use the preview pane to ensure satisfaction with your listing. If everything looks good, click “publish.” Once Facebook verifies that your listing complies with its guidelines, it will go live.
8. You can edit your listing anytime thereafter to make improvements or changes, including adjusting the price if needed.

Is tax payable in income from selling on Facebook Marketplace?

If you’re occasionally selling used items on Facebook Marketplace or similar platforms, you won’t owe any taxes. However, if you’re regularly buying or making items with the intention of selling them for profit, you’re considered to be trading and earning income from self-employment.

In the UK, you can still earn up to £1,000 of gross income tax-free each year, known as your Trading Allowance.

If your gross trading income exceeds £1,000 from sales on Facebook Marketplace, you’re required to inform HMRC (Her Majesty’s Revenue and Customs, the UK tax authority) about it.

This entails registering for Self Assessment, which is how HMRC collects income tax from self-employment.

Whether or not you’ll need to pay taxes depends on your total taxable income, including income from any other sources like employment, and the Income Tax band into which your total taxable income falls.