How to Sell on Facebook Marketplace: What to Know Before You List

Is that stuff in your closet worth any money?

You might be thinking, "Ralph, it's just old stuff. Why plan anything?" Because a few minutes of planning keeps you from underpricing it or getting scammed. It also means no surprises at tax time. Here's how to sell on Facebook Marketplace the smart way.

Start With the Closet Test

Here's my rule. If you haven't used it in six months and it's in decent shape, you can probably sell it. Go through your closets, basement, and garage.

Stick with real brands. Knockoffs are hard to sell, and they're hard to price.

Price It by What Sold, Not What People Ask

Asking and selling are two different things.

Anyone can ask $200 for a used handbag. Check what similar items actually sold for, then price from there. Don't open at your lowest number either, because you leave yourself no room to negotiate.

eBay reaches more buyers, but it takes 13.6% plus a $0.40 order fee on most items. That's about $11 on a $75 sale, before shipping. Selling locally avoids those fees.

Keep the Deal Inside the App

I sold a Rolex on Facebook Marketplace once. I shipped it, and a UPS driver collected the buyer's cashier's check and sent it back to me. The second I opened the envelope, I knew it was fake. I'd been scammed.

It happens a lot. The FTC says Americans reported losing $2.1 billion in 2025 to scams that started on social media, and more of that money was lost to scams that started on Facebook than on any other platform.

My rules:

• Take cash or a payment app, never a check, and confirm the money cleared before you hand anything over.

• Stay in the app. If a buyer wants to move to text or email, say no.

• Meet in a public place, bring someone with you, and tell a friend where you're going.

Yes, a Profit Is Taxable Income

Here's the part a lot of people don't know. If you sell something for more than you paid for it, that profit is income, even on a one-time sale. Sell it for less than you paid and you generally have no taxable gain.

A payment app or marketplace has to send you a Form 1099-K when you take in more than $20,000 across more than 200 transactions. Both numbers, not either one. A platform can still send you a form for less, and the IRS says you owe tax on a gain whether or not the form shows up. As a licensed public accountant, I'm not going to tell you to skip reporting it.

If you start reselling in volume, keep track of what you paid for each item, your selling costs, and shipping. Those numbers reduce your profit.

Your Homework This Week

1. Pick One Item

Choose something you haven't used in six months, in decent shape, with a real brand name.

2. Check What It Sold For

Look at sold prices, not asking prices.

3. Plan the Handoff

Public place, daytime, cash or a payment app, and confirm the money cleared.

Start Small, Not Overwhelmed

Nobody has to clear the whole garage this weekend, and there's no shame in owning things you never used. Everybody does.

One item.

One real price.

One safe handoff.

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Bring your money questions, and Juliet and I will take them on the show.