What is C2C? C2C is consumer-to-consumer or customer-to-customer transactions. In a C2C model, buyers and sellers transact directly instead of through an intermediary. Online C2C firm sites include Quikr, OLX, and eBay, which sell products or services through a classified or auction system.
The purpose of a C2C is to enable these partnerships among customers, helping buyers and sellers locate each other. Customers can benefit from the rivalry for items and readily find products that may otherwise be difficult to identify. In contrast to B2C and B2B business models, C2C is business-to-consumer.
Did you know?
In India, Olx is known for being the strongest and most popular user-to-user (C2C) online marketplace.
Consumer-to-Consumer (C2C): What Is It?
Consumer to Consumer (C2C) is a business model in which third-party organisations facilitate transactions for items or services between consumers. There is no corporation participating on either end of the sale, and most C2C business is done online.
In addition to direct sales to consumers, the most common methods of distribution are:
- Direct sales to businesses
Many businesses use consumer-to-consumer (C2C) models, and the results are positive. Customers' relationships with companies are strengthened, and new markets are opened due to this. The C2C business model is prevalent among e-commerce firms, and enterprises are reaping huge rewards thanks to the rapid growth of technology and marketing.
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Examples of C2C Business
This website has two product listings:
- fixed-price products
- auction items
Fixed-price products can be purchased immediately by using the Buy Now option. Place Bid buttons are featured on auction items and show the current bid price. These items are up for grabs for a fixed period, and the highest bidder is declared the winner.
A social commerce platform called Coutloot was established in 2015. It is well-known as India's largest physical and online social media marketing platform, giving its users the option to sell anything online to reasonable consumers anywhere in the nation.
Additionally, Coutloot offers its clients paperwork, cash on delivery, and logistics services. Mumbai, Maharashtra, India is home to the company's headquarters.
Launched in 2008, Quikr is a well-known online C2C eCommerce marketplace that enables users to post and respond to free local classified advertising for a variety of items, including apartments, pets, furniture, jobs, events, vehicles, housing, and more.
Currently, Quikr offers its services in over 940 cities across India. Mumbai, Maharashtra, India is home to the company's headquarters. Quikr is ranked 16th among the top websites in India.
Well, Olx has established quite a significant foothold in the modern digital industry. The business was founded in 2006. The strongest and most well-known consumer to consumer (C2C) based digital platform in India is called Olx.
Olx provides a service for purchasing, renting, and selling products through locally-based, free classified ads. Everything is available for digital purchase, including vehicles, bicycles, furniture, mobile devices, laptops, residences, gadgets, and real estate.
Also Read: 10 Best Wholesale Business in India 2022-23
Business Models for C2C
Several e-commerce platforms make it easier for consumers and sellers to find exactly what you're looking for. A minor listing charge or commission on the final sale is how most C2C platforms make money.
The following are some of the most common C2C venues::
- It is possible to advertise a product for sale at a predetermined price and allow numerous purchasers to compete for the item until one person wins. There may not be many other exciting bids, in which case the item's price may rise much higher than if the seller had advertised it at a fixed price.
- Many online platforms connect consumers and sellers who want to trade authentic goods—from secondhand furniture to artwork and anything in-between—and join them. Many of these systems are available in online and app formats to facilitate in-person transactions.
- These services can be exchanged via online C2C platforms such as hiring a dog trainer, a web designer, a handyperson or renting someone's holiday house.
- As a result, C2C online payment systems have been created to streamline the payment process for C2C transactions on other platforms. These companies may charge a minor fee for transferring earnings into one's bank account to generate revenue.
Advantages of the C2C Model
- Both buyers and sellers benefit when a company is removed from a sales transaction. C2C model encourages lower prices and more profit margins. When wholesalers and retailers are cut out of the equation, the vendor and the buyer benefits from more significant profit margins and lower prices.
- A wide variety of products and services are available. The site is great for those who trade in rare collectables or secondhand goods that are hard to obtain from traditional firms. The ease with which the transaction can be completed will benefit both parties. Compared to traditional business forms like brick-and-mortar stores, C2C eliminates many obstacles consumers face.
- Many sellers cannot afford to start a conventional small business, while others don't want to sell as a primary source of income. Consumers may find it difficult to find cheap goods and services in brick-and-mortar stores. Because C2C platforms remove these obstacles, you can now do business from home.
Drawbacks of the C2C Model
- C2C sales transactions provide consumers and sellers with a wide range of freedoms, but they also have significant drawbacks. As a result, there's a lack of quality assurance. There is a risk that C2C platforms may not be able to control product quality because they do not make or sell things themselves.
- It's not always simple to get paid, and paying using a credit card isn't always an option on all C2C platforms. Thus, customers may have to use cash or another service that may incur a fee.
- There are more instances of dishonesty than in the past. Hence, C2C marketplaces are more likely to include scammers attempting to defraud customers and sellers. Non-traditional payment methods and a lack of information regarding a seller's listing may raise red flags for buyers. Before transferring their goods, buyers should pay the seller in full.
C2C Market's Revenue and Growth
Fees charged to sellers for displaying products for sale, providing promotional features, and facilitating credit card transactions are how C2C websites and similar platforms make money. Typical C2C transactions involve the sale of secondhand goods via a classified or auction system.
This market is expected to increase due to its low cost. Taking advantage of third parties has become more and more affordable for consumers, and more options are available to them. In the age of social media and other internet outlets, retailers view this business strategy is crucial. C2C platforms saw an uptick in traffic since these channels highlight products that customers own, enhancing demand.
Common Concerns of the C2C Model
In C2C business models, problems such as poor quality control and no payment guarantees abound. Credit card transactions aren't always supported, although services like Google Pay and others have made it easier to make C2C purchases in recent years.
A comprehensive selling policy is frequently used by businesses to thwart the sale of unlawful products or services, such as pirated CDs or drugs. If a user violates the policy, they may be barred from using the platform in the future.
The sellers are also consumers; there is no way to hold them accountable if their products are low-quality or misrepresented. On the other hand, because the buyers are consumers, it is difficult to enforce payment guarantees.
Scammers use C2C systems, which is very common for them to breach into. The companies take several safety precautions to safeguard customers' interests. Don't be fooled by C2C sellers that can't answer specific inquiries about their products, pressure you into making a purchase instantly, or refuse to accept cash or meet in person.
To put it simply, the business model known as "consumer-to-consumer" (C2C) relies on third-party organisations to help connect buyers and sellers of goods and services directly. It is a sale and purchase transaction between two customers and the business that acts as a third party play no role in this. To facilitate such relationships, a C2C platform serves as a conduit for buyers and sellers to connect.
Many e-commerce platforms, such as eBay, Quikr, OLX, and Countloot allow selling goods and services directly to consumers. Both buyers and sellers benefit when wholesalers and retailers are eliminated from the equation. There is a small fee for C2C platforms to transfer money into one's bank account.
Regarding traditional company models like brick-and-mortar retailers, C2C eliminates many difficulties consumers have when interacting with them. C2C platforms may not be able to guarantee the quality of their products. Buyers may be suspicious of a seller's listing if they encounter unusual payment methods or a lack of information. Consumers now have more options and can use third parties at lower costs.
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