What Is Customer to Customer (C2C)?
Customer to customer (C2C) is a business modelwhereby customers can trade with each other, typically in an online environment.Two implementations of C2C markets are auctions and classified advertisem*nts. C2C marketing has soared in popularity with the arrival of the internet andcompanies such as eBay, Etsy, and Craigslist.
Key Takeaways
- Customer to customer (C2C) is a business modelthat enables customers to trade with each other, frequently in an online environment.
- C2C businesses are a type of business model that emerged with e-commerce technology and the sharing economy.
- Online C2C company sites include Craigslist, Etsy, and eBay, which sell products or services through a classified or auction system.
- Some C2C companies have problems, such as a lack of quality control and payment guarantees.
- C2C can be contrasted with B2C and B2B business models.
How Customer to Customer (C2C) Works
C2C represents a market environment where one customer purchases goods from another customer using a third-party business or platform to facilitate the transaction. C2C companies are a type of business model that emerged with e-commerce technology and the sharing economy.
Customers benefit from the competition for products and often find items that aredifficult to locate elsewhere. Also, margins can be higher than traditional pricing methods for sellers because there are minimal costs due to the absence of retailers or wholesalers. C2C sites are convenient because there is no need to visit a brick-and-mortar store. Sellers list their products online, and the buyers come to them.
The "Amazon effect" is named after the popular global online retailer and refers to the competitive gains e-commerce businesses have made as more shoppers make purchases online instead of shopping at brick-and-mortar stores.
Types of Customer to Customer (C2C) Businesses
Craigslist is an e-commerce platform that connects people advertising products, services, or situations. Craigslist not only provides a platform for buying, selling, and trading products but posts monthly classified ads, such as employment opportunities and property listings. This platform requires the seller to deliver items directly to the buyer in person.
Etsy allows company owners to create their custom website on which to market their products to consumers. The C2C site offers guidance and tools for growing a business that ranges in price according to a company's stage of development. There's also a "Sell on Etsy" app that helps to manage orders, listings, and customer queries efficiently.
eBay features two types of product listings: fixed-price items and auction items. Fixed price items can be purchased quickly by selecting the Buy It Now button. Auction items feature a Place Bid button for entering bids and show a current bid price. These items are open to bids for a predetermined time and are declared "sold" to the highest bidder.
Revenue and Growth of the C2C Market
C2C websites and similar platforms make money from fees charged to sellers for listing items for sale, adding on promotional features, and facilitating credit card transactions. These C2C transactionstypicallyinvolve used products sold through a classified or auction system.
The C2C market is projected to grow in the future because of its cost-effectiveness. The cost of using third parties is declining, and the number of products for sale by consumers is steadily rising. Retailers consider it to be anessential business model because ofthe popularity of social media and other online channels. These channels showcase specific products already owned by consumers and increase demand, which drives increased online traffic to C2C platforms.
However, C2C has problems such as a lack of quality control or payment guarantees. In some cases,there is little support for credit card transactions, although the emergence of PayPal and other such payment systems over the years has helped simplify payments on C2C platforms.
Special Considerations
The C2C marketplace has increased over time, as more companies have entered the space to facilitate C2C transactions. Many companies target niche markets andlist specific products toattract unique consumers.
The C2C marketplace is increasing in popularity among sellers looking to maximize their sales potential by connecting with customers that they otherwise would not reach using traditional selling methods.
Online platforms such as Etsy, eBay, and Craigslist appeal to customers who can locate mostly any product or service at a price they are willing to pay.
What Are Some Examples of C2C Companies?
In e-commerce, some big names in C2C include eBay, Etsy, Craigslist, Ali Express, and Amazon Marketplace. Some C2C payments companies include Venmo, Paypal, and Zelle.
How Does C2C Differ From P2P?
C2C stands for customer-to-customer; P2P stands for peer-to-peer. Both concepts involve consumers or individuals dealing with one another. The main difference is that with C2C, there is a company or other third party in between the buyer and the seller (or sender and receiver). In a P2P platform, counterparties transact directly with one another without that intermediary.
What Is a B2C Company?
Most companies around are B2C (business-to-consumer). This means that a business produces and markets a product for household consumption. This differs from B2B (business-to-business) or C2C (customer-to-customer).
FAQs
How Customer to Customer (C2C) Works. C2C represents a market environment where one customer purchases goods from another customer using a third-party business or platform to facilitate the transaction. C2C companies are a type of business model that emerged with e-commerce technology and the sharing economy.
What is C2C short answer? ›
What does C2C mean? C2C means "consumer-to-consumer" eCommerce, which is when one consumer sells goods or services to other consumers online—similarly to how eBay, Etsy, or Craigslist works. It is a type of trade relationship where both the sellers and buyers are consumers instead of businesses.
How does C2C work? ›
C2C stands for “consumer to consumer” or “customer to customer”; it's a business model that fosters commerce between private individuals, usually in an online environment. C2C companies act as intermediaries to foster engagement and help consumers reach bigger audiences.
What is the customer to consumer model? ›
Consumer-to-Consumer (C2C) e-commerce is a business model in which consumers sell products or services to other consumers through an online marketplace. The online marketplace provides the platform for buyers and sellers to connect and transact.
Which of the following is considered example of the consumer to consumer C2C model? ›
Amazon.com, Rentalic.com, and e-bay, all three are considered the examples of Consumer to consumer (C2C) model.
What does C2C stand for customer to customer? ›
C2C stands for Customer to Customer. C2C E-commerce is an online platform where customers can buy and sell their products/services to each other. In this business model, e-commerce acts as an intermediary that facilitates transactions between customers.
What does C2C mean payment? ›
While many businesses focus on creating and selling products to consumers, others specialize in consumer-to-consumer (C2C) transactions. These C2C businesses focus on helping private sellers connect with consumers in industries ranging from handmade goods to payments.
Where does C2C operate? ›
c2c is the award-winning train operator running services between Fenchurch Street and Shoeburyness, serving 26 stations in East London and South Essex and is one of the UK's most punctual and popular train operators.
How is C2C different from B2C? ›
B2C, or business to consumers, is the sale of goods directly to consumers. It is more sophisticated, needs more training, and the right kind of marketing strategies in action. C2C, or consumer to consumer, is the direct sale of goods and services between consumers without the involvement of a middleman.
How to create a C2C business? ›
Step-by-Step Process to Build a C2C Marketplace
- Choose Your Niche & Audience. ...
- Decide the Key Features of Your C2C Marketplace. ...
- Choose a Monetization Model. ...
- Decide a Shipping Strategy. ...
- Create a Design of Your Marketplace. ...
- Choose a Technology Stack. ...
- Develop Your C2C Marketplace. ...
- Promote Your C2C Marketplace.
As there is no middleman involved in the C2C business, the cost of the product and service can be lower which increases the profitability. As a seller, you do not need to pay salary, rent, website hosting, and others. C2C marketplace facilitates the transaction between the seller and buyer irrespective of hidden costs.
How to build a customer model? ›
6 steps to building a high-performing customer acquisition model
- Identify your ideal customer. ...
- Set and track your goals. ...
- Build an omnichannel marketing journey. ...
- Improve conversions with a sales playbook. ...
- Set up your nurture journeys. ...
- Track and optimize towards the metrics that matter.
What is an example of business-to-consumer? You can find business-to-consumer examples everywhere you look: from retail chains to restaurants, hair salons, gyms, and indie boutiques. However, in modern times, the best B2C examples are e-commerce platforms such as Amazon, eBay, or any other retailer that sells online.
What are the pros and cons of C2C? ›
Advantages include reduced overhead when compared to a physical store, increased customer base, and improved credibility by working with the marketplace. Disadvantages of such online stores include increased competition, payment issues, and platform fees.
What type of C2C business model is Uber an example of? ›
A peer-to-peer (P2P) or consumer-to-consumer (C2C) marketplace is one where any buyer can also be a seller. A well known example of a P2P or C2C services marketplace is Uber.
What is an example of B2B and C2C? ›
As a one liner, I can say the exchange of products, services or information (aka e-commerce) between businesses, rather than between businesses and consumers can be termed as B2B. Examples- IndiaMart, Alibaba, Sulekha, CRM systems, Salesforce. C2C-Consumer to consumer model. It is also called peer to peer.
Is it better to work on C2C or W-2? ›
W-2 employees offer stability for a company. Over time they will adapt to the company culture. Employers separately benefit from C2C workers because they reduce paying into employment taxes. Fewer employers misclassify C2C employees and avoid the subsequent audits from the Internal Revenue Service.
Why is C2C better than W-2? ›
Many employers understand that using C2C arrangements trims employment taxes. Another benefit is that it cuts employment concerns. This means the other party in your company's C2C relationship will have a harder time filing a lawsuit against your business if the relationship sours.
What is better, 1099 or C2C? ›
One of the biggest differences between a 1099 contractor and a corp-to-corp is the misclassification risk reduction it can offer to clients by contracting with a vetted corporation rather than an individual.
