Updated for 2023: C2C Meaning and Marketplace Tips

C2C platforms give sellers the ability to list an item for sale without additional advertising, marketing costs, or legwork. The platform owner takes care of things like quality control and promotional features. As you’ll see, many C2Cs provide a way to sell products via a classified or auction system, offering a platform and facilitating credit card transactions. In the P2P model, the customers can directly sell their products or services to other customers without e-commerce as an intermediary. Some of the common P2P platforms are Instagram, Kaskus, and OLX. We have been familiar with the B2C (Business to Customer) e-Commerce business model, where businesses sell their product to customers via an online platform.

The C2C marketplace has increased over time, as more companies have entered the space to facilitate C2C transactions. Many companies target niche markets and list specific products to attract unique consumers. Promotion on Google, social media, and websites is called digital marketing.

In a P2P platform, counterparties transact directly with one another without that intermediary. 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. Until the ’90s, real estate sales, second-hand cars, and goods were sold through newspapers and magazines’ advertisement pages.

And some top disadvantages of the C2C model:

One of the biggest hurdles in the early days of C2C e-commerce was convincing customers that their information was safe when paying online. Services like PayPal helped get buyers and sellers both used to and comfortable with paying online with a credit card or bank account. C2C represents a market environment where one customer purchases goods from another customer using a third-party business or platform to facilitate the transaction.

Sellers are only responsible for the condition of the product at the time of delivery. That is, there is no product replacement, technical service, and return procedures. Whether you want to create an eBay-toppling auction site or help direct sellers find their buyers for goods and services, you’ll get a better return on your investment when you work with us. We’ve built more than 1500 custom websites to satisfy every need. There are ample opportunities to connect buyers and sellers in underserved markets, and Clarity has C2C eCommerce examples in our portfolio to prove it.

The material provided on the Incorporated.Zone’s website is for general information purposes only. It is not intended to provide legal advice or opinions of any kind. I started this blog out of my passion to share my knowledge with you in the areas of finance, investing, business, and law, topics that I truly love and have spent decades perfecting.

Productivity 101

On the other hand, B2C e-commerce is designed for businesses to sell directly to consumers and involves shorter sales cycles and lower order values. D2C e-commerce is a newer trend that enables businesses to sell their products directly to consumers, bypassing retailers and other middlemen. In conclusion, understanding the differences between B2B, B2C, D2C, C2C, and social e-commerce is crucial for anyone looking to start an e-commerce business or get involved in the online marketplace. While there are similarities between these different types of e-commerce, they each have their unique features, target markets, and business models. Clarity eCommerce offers such a platform, one that costs a fraction of what most global marketplaces cost. It can also be set up in weeks or months instead of the years you might spend waiting on other C2C software platforms, all while handling millions of SKUs and tens of thousands of buyers and sellers.

This term is often used to describe online platforms or marketplaces that facilitate such transactions between individuals, allowing them to buy and sell goods or services to one another. Many crowdfunding sites work on a rewards system, where consumers pledge money in exchange for physical or digital perks once certain funding is reached. The primary difference between these marketplace business models is that the exchange might never happen if the funding goal isn’t reached. Most platforms allow customers to make purchases by clicking a “buy now” button or by adding items to a cart and then completing a checkout process. The customer then chooses shipping speed (if multiple options are offered) and payment method to complete the sale. Typically, C2C e-commerce platforms allow buyers to use services for free while earning revenue through fees collected from sellers for each sale.

The Potential Growth of the B2G (Business to Government) E-Commerce Business Model in Indonesia

These newspapers and magazines were, in a sense, C2C trade vehicles. Today, the place where these types of products are sold is C2C e-marketplaces. In the C2C system, the site owner receives commissions from the transactions and gets a periodic subscription fee from the vendors. Now, many companies create e-marketplaces by using their products and adding other vendors to the system. In conclusion, the different e-commerce models serve different target audiences and require different approaches. As a business owner, it’s essential to understand these models and determine which one is best for your business.

PayPal is a money transfer platform that charges a transfer fee on each transaction due to its C2C trading service. On the Fiverr website, sellers who market their products or services and intermediaries who purchase these goods and services are charged a percentage commission for each transaction made. In real estate websites, buyers and sellers do not pay a commission for the actual transactions, but c2c stands for sellers, real estate, or construction companies, pay monthly dues. Early forms of C2C business took the form of flea markets and garage sales. Today, C2C is primarily an e-commerce business model hosted on platforms that facilitate business transactions between buyers and sellers of goods and services. C2C e-commerce differs from other business models as consumers interact directly with each other.

E-Commerce for Business: The Good and The Bad Side

Compared to traditional methods, digital platforms now provide more income. The target audience can be determined and reached more clearly, and shorten the branding process of companies. The goal of C2C is to make it easy for buyers and sellers to find each other.

Often, a company profits off of C2C business by collecting fees for facilitating the sale. An online auction site will often involve online interaction and simple conversations to facilitate bargaining and payment. A C2C platform has more potential customers as an online store or on e-commerce platforms than a brick and mortar store. These often let people pay with Paypal, a secure form of payment, or credit cards, but without the intermediaries.

Types of C2C Businesses

However, the digital marketing to be applied at this point is of great importance. In order to shop in the mall, a person has to take many actions. From the consumer’s home, they should go to the store, possibly use a vehicle or public transport, and transport the purchased items to their home. The ability to process payments has scared away more than one person who had a good idea for a business. They might be experts in their field but still be intimidated by the options and complexities of accepting payments, especially when there is an international element involved. In a nutshell, what is meant by C2C is the ability for consumers to do “business” directly with one another rather than dealing with a company such as a retailer, manufacturer, distributor, wholesaler, or other.

Best of all, these payment options are seamlessly integrated into the C2C software itself so that you can focus on growing the business. One of the most popular online marketplace where consumers trade with one another is the Facebook Marketplace where anyone can buy and sell goods using the Facebook platform. Like any type of business, consumer-to-consumer has some disadvantages. With many people changing careers or building side businesses, C2C platforms are likely to continue growing and connecting people who sell their goods and services to those who wish to buy them. You’re probably familiar with B2B (business-to-business), B2C (business-to-consumer), and D2C (direct-to-consumer) business models. C2C is customer-to-customer, or consumer-to-consumer business model.

Although there are many benefits for consumers to use C2C platforms to trade, we should also be aware of the possible drawbacks. Anyone can go on eBay and sell a product to another person either by auctioning it or by selling it for a price he or she specifies. It is expected that the more e-commerce technologies advance the more the consumers’ demand for a shared economy increases, more C2C platforms will emerge. C2C, standing for “Customer to Customer” or “Consumer-to-Consumer”, refers to trade or transaction directly between consumers with one another without intermediaries.

• If needed, our platform can provide a multilingual, multi-currency model as well.
• Transactions in C2C e-commerce are usually small-scale, and the pricing is negotiable.
• In other words, using the Internet and e-commerce technology, a company can offer a platform where consumers are able to purchase goods and services directly from one another.
• Although the sellers have separate pages, the working logic of the C2C e-marketplaces is the search pages where products of the same type and similar features can be listed.

Brands, companies can primarily use the Google Analytics tool to analyze the target audience. Brands can advertise directly to their target audience on social media with the information they obtain. Thus, with the increase in conversion rates, sales costs will decrease. C2C sites can earn income by getting commissions from the sales of goods and services carried out by sellers operating within their organization.