Facebook is reportedly testing a new feature called "Local Market" which is a structured marketplace for buyers and sellers of products and services.

The new feature was spotted by few users in their Facebook iPhone app, appearing in place of the "Messenger" button at the bottom centre of the screen.

It allowed users to browse and post products including autos, appliances, furniture, clothing, household, kids, and books.

A "Buy" and "Sell" interface allowed users to search for products using keywords.

Users could browse through different categories, including photos and prices of products.

The option to post to ‘Local Market’ also showed up when someone created a post in a local selling group on Facebook.

Previously, Facebook said that it hosts millions of groups on its site and sale groups were one of the most popular categories.

Later the company introduced a "Sell" feature where users can set a price and a pick-up or delivery location and give a brief about the product.

The social networking site is also testing other features for sale groups such as recommendations, saved searches, notifications to improve the experience of buying and selling on its platform.