What Is The C2C Business Model?

C2C means consumer to consumer. C2C is an open-source model of online commerce that allows users to establish a mutually beneficial relationship with one another by establishing a connection between them through electronic transactions. Customer to the consumer is a kind of e-business, also known as C2C, that refers to the online commercial relationship that consumers set with each other through electronic transactions.

Beneficial transaction through the Internet

With the rise of electronic commerce, as more channels through which consumers can make a mutually beneficial transaction through the Internet increase, in this model, consumers either sell their goods to other consumers via specific marketplaces at a fixed price that they determine or offer their goods and services for sale on a C2C basis through a network of retailers who agree to match the supply and demand in their respective markets.

In a C2C business model, a website follows the basic principles of an auction site, the only difference being that the items being offered for sale are bought directly from the buyers. Both buyer and seller are authenticated in a virtual marketplace before a deal is sealed. This is the reason why C2C websites often use the terms “pre-offers” and “cashback” instead of traditional auction sites. This has been successful because it enables companies to monetize their websites in a better way, rather than just waiting for customers to come to their sites and making money out of their ads on the site.

Cost-effective Form of Advertising

A C2C business model can be implemented in two basic forms. The first is the most common and is called the open marketplace, where a website allows its users to engage in a direct transaction with the other party. For instance, if a user buys a digital camera from a website, that party’s code can be placed into the camera’s download page, which then allows the camera’s owner to post a picture and allow other users to bid for it. Once the photo is taken, it can be posted to online marketplaces like eBay or Amazon, and other platforms. This is a cost-effective form of advertising available because the website does not have to pay any fees to sellers, and the seller does not have to pay for any advertising costs on the Internet.

Auction Marketplace

The second form of the C2C business model is an auction marketplace. This is where a website allows its users to post goods for sale in the form of digital products or physical goods such as books, DVDs, jewelry, clothing, and so forth. Once a buyer bids on the item, the seller then enters into a contract with the buyer. This is where the C2C platform shines because it is not necessary to pay any fees to sellers, which means more money for the company.

Online Shop

Another way the C2C business model differs from other online stores is the setup of the online shop. In a traditional eCommerce business, a website will need to host inventory, payment processing, and payment gateway software. Furthermore, it will be up to the owners of the goods to maintain and develop their site. On the other hand, C2C websites do not need to do these things because they work as aggregators of goods and let users post information about new goods in their online store. As the aggregator, the online shop owner only needs to upload digital goods for sale and manage its backend system.

The C2C business model has been adopted by numerous e-commerce sites such as Amazon and Overstock. These large companies not only allow users to post information about new goods but also process payments and allow users to browse the marketplace. However, unlike other online shops, C2C businesses do not sell physical goods. Instead, they promote their goods using social media networks, content publishing, and traditional marketing strategies.