What Is the Meaning of the C2C Business Model? (2024)

FAQs

What Is the Meaning of the C2C Business Model? ›

A Marketplace. C2C, meaning consumer-to-consumer commerce, is a business model often defined as one consumer selling goods or services to another consumer. When done online, C2C becomes a type of eCommerce.

An example of a C2C website is eBay, which is an online marketplace where individuals buy and sell items through a bidding process. Another example is Craigslist, which is a site that allows users to post classified ads for goods and services specific to local areas.

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.

Benefits of C2C businesses include increased affordability, convenience and increased customer bases. A C2C business can operate via online auctions, e-commerce sites, money-transfer platforms and social media sites.

Amazon.com is the world's largest online retailer. The company operates as both a B2C and a C2C market, meaning it markets goods directly to customers and allows users to sell goods themselves. These C2C facilitators earn fees or commissions by allowing sellers to list and sell goods through their websites.

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.

Some very well-known examples of C2C eCommerce are eBay, Craigslist, Airbnb, Uber, and Etsy, amongst dozens of others.

A Corporation to Corporation (Corp-to-Corp) worker, often abbreviated as C2C, is an independent contractor that is incorporated. Similar to 1099 workers, they are usually engaged by businesses on a project-based contract. The key difference is a C2C worker has their own incorporated company.

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.

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 transactions typically involve used products sold through a classified or auction system.

How does C2C get paid? ›

How are payments handled in a C2C arrangement? Payments are typically made from one business entity to another based on the terms outlined in the contract, which may specify hourly rates, project fees, or other payment structures. The contractor invoices the hiring company for services rendered.

Disadvantages of a C2C business model

A disadvantage of having a C2C business model is the possibility of customers posting fraudulent offerings on a platform. Unfortunately, some individuals use a C2C online platform to take advantage of others. For example, customers may post items for sale that don't exist.

Blablacar, Airbnb or Uber are examples of C2C marketplaces.

Amazon's biggest direct competitors include Walmart, eBay, the Alibaba Group, Target, as well as more localized eCommerce marketplaces (such as Otto or Rakuten). In the video streaming segment, Amazon's biggest competitors are Netflix, Rakuten, HBO, Disney, and Apple TV+. Who are Amazon's indirect competitors?

B2B features transactions between established businesses while the C2C model involves consumer trading mostly done through various online platforms. There are legal requirements to be met by the organizations in the B2B business model while the C2C involves individuals, hence there is no paperwork required.

Answer: eBay is an example of 'Consumer-to-Consumer (C2C)' transactions.

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.

B2C businesses being the most common, deal with businesses selling to consumers like Netflix which sells services to consumers. C2C is where a shopper can post a product or service to another shopper. eBay and Facebook marketplace makes it possible for C2C businesses. A site like Amazon is both a B2B and B2C business.

A simple explanation is: B2B means that you have also established a company and bought things from our company; B2C is when I establish a company to sell things, and you buy them; C2C means I sell things and you buy them.