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C2C - Consumer to Consumer

3 min read

Quick Summary

C2C enables individuals to trade products and services directly with each other through online platforms, eliminating traditional retailers.

C2C (Consumer to Consumer), also known as peer-to-peer (P2P) commerce, is a business model where individuals trade products, services, or information directly with each other, typically facilitated by an online platform that connects buyers and sellers.

Characteristics of C2C

  • Individual Sellers: Anyone can become a seller
  • Platform-Mediated: Third-party platforms facilitate transactions
  • Used/Pre-owned Goods: Often involves second-hand items
  • Lower Prices: Competitive pricing due to individual sellers
  • Community Trust: Ratings and reviews system crucial
  • Variable Quality: No standardization in products

Types of C2C Platforms

Type Description Examples
Marketplaces Buy/sell goods eBay, OLX, Quikr
Ridesharing Share rides Uber, Lyft, BlaBlaCar
Accommodation Rent homes/rooms Airbnb, Couchsurfing
Freelancing Services exchange Fiverr, Upwork
Finance P2P lending LendingClub, Faircent

Revenue Models for C2C Platforms

  • Transaction Fees: Percentage of each sale
  • Listing Fees: Charge for posting items
  • Featured Listings: Paid promotion for visibility
  • Advertising: Display ads on platform
  • Subscription: Premium memberships
  • Payment Processing: Fees on transactions

Challenges in C2C

  • Trust Issues: Buyer-seller trust concerns
  • Quality Control: No standard product quality
  • Fraud Prevention: Scams and fake listings
  • Payment Security: Secure transaction handling
  • Dispute Resolution: Handling conflicts

C2C in India

Popular C2C platforms in India include:

  • OLX India: Leading classifieds for used goods
  • Quikr: Classifieds across multiple categories
  • Airbnb India: Home rentals
  • Carousell: Mobile-first marketplace
  • P2P Lending: Faircent, Lendbox

Key Points

  • Transactions between consumers
  • Platform-facilitated commerce
  • Often involves pre-owned goods
  • Lower prices than retail
  • Trust-based through ratings
  • Includes marketplaces, ridesharing, rentals

Frequently Asked Questions

What is the difference between C2C and B2C?

How do C2C platforms make money?

Are there tax implications for C2C sellers?

What makes a successful C2C platform?