Customer to Customer (C2C)
What Is Customer to Customer (C2C)?
Customer to customer (C2C) is a business model by which customers can trade with one another, ordinarily in an online environment. Two executions of C2C markets are auctions and classified ads. C2C marketing has soared in notoriety with the appearance of the internet and companies like eBay, Etsy, and Craigslist.
How Customer to Customer (C2C) Works
C2C addresses a market environment where one customer purchases goods from another customer utilizing a third-party business or platform to work with the transaction. C2C companies are a type of business model that arose with [e-commerce](/internet business) technology and the sharing economy.
Customers benefit from the competition for products and frequently find things that are challenging to find somewhere else. Additionally, margins can be higher than traditional pricing methods for sellers since there are insignificant costs due to the shortfall of retailers or wholesalers. C2C sites are helpful on the grounds that there is compelling reason 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 well known global online retailer and alludes to the competitive gains internet business businesses have made as additional customers make purchases online as opposed to shopping at brick-and-mortar stores.
Types of Customer to Customer (C2C) Businesses
Craigslist is an online business platform that interfaces individuals advertising products, services, or circumstances. Craigslist not just gives a platform to buying, selling, and trading products however posts month to month classified ads, like employment opportunities and property listings. This platform requires the seller to deliver things straightforwardly to the buyer in person.
Etsy permits company owners to make their custom website on which to market their products to consumers. The C2C site offers guidance and tools for growing a business that reaches in price as per a company's stage of development. There's likewise a "Sell on Etsy" app that assists with overseeing orders, listings, and customer inquiries effectively.
eBay features two types of product listings: fixed-price things and auction things. Fixed price things can be purchased rapidly by choosing the Buy It Now button. Auction things feature a Place Bid button for entering bids and show a current bid price. These things are available to bids for a foreordained time frame and are declared "sold" to the highest bidder.
Revenue and Growth of the C2C Market
C2C websites and comparable platforms bring in money from fees charged to sellers for listing things available to be purchased, adding on promotional features, and facilitating credit card transactions. These C2C transactions regularly include utilized products sold through a classified or auction system.
The C2C market is projected to fill in the future in light of its cost-effectiveness. The cost of utilizing third parties is declining, and the number of products available to be purchased by consumers is consistently rising. Retailers believe it to be a fundamental business model on account of the fame of social media and other online channels. These channels exhibit specific products previously owned by consumers and increase demand, which drives increased online traffic to C2C platforms.
In any case, C2C has issues, for example, a lack of quality control or payment guarantees. Now and again, there is little support for credit card transactions, albeit the rise of PayPal and other such payment systems throughout the years has worked on payments on C2C platforms.
Special Considerations
The C2C marketplace has increased over the long run, as additional companies have entered the space to work with C2C transactions. Many companies target niche markets and rundown specific products to draw in unique consumers.
The C2C marketplace is expanding in prevalence among sellers hoping to boost their sales potential by associating with customers that they in any case wouldn't arrive at utilizing traditional selling methods.
Online platforms like Etsy, eBay, and Craigslist appeal to customers who can find generally any product or service at a price they will pay.
Features
- Customer to customer (C2C) is a business model that empowers customers to trade with one another, habitually in an online environment.
- C2C can be appeared differently in relation to B2C and B2B business models.
- Some C2C companies have issues, for example, a lack of quality control and payment guarantees.
- C2C businesses are a type of business model that arose with internet business technology and the sharing economy.
- Online C2C company sites incorporate Craigslist, Etsy, and eBay, which sell products or services through a classified or auction system.
FAQ
How Does C2C Differ From P2P?
C2C stands for customer-to-customer; P2P stands for peer-to-peer. The two concepts include consumers or people dealing with each other. The principal difference is that with C2C, there is a company or other third in the middle of between the buyer and the seller (or source and receiver). In a P2P platform, counterparties execute straightforwardly with each other without that intermediary.
What Are Some Examples of C2C Companies?
In online business, a few big names in C2C incorporate eBay, Etsy, Craigslist, Ali Express, and Amazon Marketplace. Some C2C payments companies incorporate Venmo, Paypal, and Zelle.
What Is a B2C Company?
Most companies around are B2C (business-to-consumer). This means that a business creates and markets a product for household consumption. This varies from B2B (business-to-business) or C2C (customer-to-customer).
