C2C (Consumer-to-Consumer) – what is it and how does it work?
C2C, or “Consumer-to-Consumer”, is a specific business model in which individuals buy and sell products or services directly between themselves without a traditional company or business entering into the transaction. Unlike conventional models such as B2C (Business-to-Consumer), where businesses sell to consumers, or C2B (Consumer-to-Business), where consumers provide services to businesses, C2C creates a direct business connection between two individuals.
This model has a long history, whether in the form of traditional bazaars, local markets, or neighborhood exchanges, but its popularity has only grown with the advent of the Internet. Platforms such as eBay, Vinted, Aukro, and Czech Bazoš have enabled consumers around the world to easily sell and buy with each other, bringing a new dimension to trading. Under this model, people not only save money but also gain access to unique and often cheaper products that would otherwise not be available in regular retail.
How does the C2C model work?
The basis of C2C trading is that consumers offer goods or services directly to other consumers. Platforms that enable C2C commerce typically provide a space for listing and creating a profile through which the seller offers their products or services. Buyers can then choose what they want to purchase and transact through the same platform.
Another important element is that platforms that enable this model often act as intermediaries between sellers and buyers. For example, on Auction, the seller is responsible for placing the bid, while the platform ensures a secure payment process and resolves any disputes.
Examples of Consumer-to-Consumer (C2C) businesses and projects in practice
- Online bazaars – platforms such as eBay, Vinted, or Czech Bazos.cz allow individuals to sell and buy products directly. People can sell their used items, such as clothes, electronics, or home equipment. The process is simple – you create an advert, and if there is an interested buyer, you arrange a sale.
- Auctions and bidding – portals like Aukro allow sellers to create auctions where other users can bid when someone reaches a winning bid. This often allows buyers to get a product at a bargain price, while the seller can benefit from a higher bid if their product is in demand.
- Sharing services and rentals – Airbnb is an example of a platform where people offer their houses or apartments for rent to other individuals. Similarly, Uber connects drivers and passengers in ridesharing, which is also an example of the C2C model.
Benefits of the C2C model for sellers
- Low start-up costs – for sellers in the C2C model, one of the biggest advantages is that they don’t have to invest a lot of capital to get the business off the ground. There is no need to start a company, rent a business space, or build a logistics network. Instead, sellers can simply list items on platforms such as eBay, Vinted, or Czech Aukro.cz right from their homes. This makes the model very accessible for those who only want to sell a few items or for those looking for an easy way to make some extra money.
- Flexibility and simplicity – C2C trading offers a high level of flexibility. Sellers can easily offer products they no longer need, such as used goods or handmade products, without having to invest in inventory or production capacity. In addition, they can choose when and how to sell, allowing them to tailor their business activities to their current needs or free time. They don’t have to deal with large organizational costs or complex processes because they can manage everything themselves.
- Direct profit – one of the main benefits is the ability to earn full profit from sales, minus a small fee to the platform of course. The seller does not have to pay commissions to other brokers or traders. This direct interaction between the seller and buyer eliminates the need for intermediaries, which means sellers get a better price for their products and a larger share of the profits.
- Ease of start-up and growth – in the C2C model, anyone can start selling immediately. There is no need for complex processes or company formation, making it much easier to enter the market. Sellers can start with just a few products and gradually expand their offerings as they succeed. With low entry costs and simple management, it is very easy to experiment with what sells and adapt your strategy as needed.
- Access to a huge audience – one of the key benefits of C2C platforms is the huge base of potential customers. Selling on platforms like eBay, Vinted or Facebook Marketplace means that your products can be seen by someone from the other side of the globe, which is a huge advantage over selling locally. This way, you can reach a huge number of buyers who might not otherwise have the opportunity to discover your products.
- Speed and convenience of sales – unlike traditional business models, the sales process in the C2C model is very fast and convenient. Products can be photographed, described, and uploaded to the sales platform in minutes without having to deal with the complicated logistics or legalities of running a business. Plus, thanks to the easily accessible mobile apps of these platforms, you can manage your sales from literally anywhere, increasing the convenience and speed of transactions.
- Waste reduction and environmental benefits – one benefit that sellers in the C2C model often underestimate is the environmental benefit. Selling used items or upcycled products helps reduce waste and contributes to sustainability. In addition, many buyers find the idea that their purchase contributes to the environment attractive, which may be another reason why they will buy these products from you.
- No warehouse space and minimal risk – because you are often selling items that you already own or have created yourself, you don’t have to worry about the costs associated with storage, logistics, or other expenses that would be associated with a traditional store. Sellers can sell just about anything – from second-hand clothes to old books to handmade products. This minimizes the risk of having to invest money in products that won’t sell.
- Opportunity to build your own brand – if sellers are doing well and getting positive reviews from buyers, they can gradually build their own reputation and brand. Many successful online sellers started on C2C platforms and through quality service and unique products, they have managed to build a loyal customer base, which has allowed them to expand their business beyond these platforms.
- Low fees and no hidden costs – most C2C platforms only charge small fees on each sale, meaning you can sell with minimal costs. There’s no need to pay expensive rent for selling space or staff. This allows sellers to keep prices low while maximizing their profits. Plus, these fees are clearly set upfront, which means you won’t be surprised by any hidden costs.
- Ability to react quickly to demand and trends – the C2C model allows you to react very quickly to changing demand and current trends. For example, if there is a demand for specific products or a new trend starts, you can react immediately and offer your products with virtually no delay. This type of flexibility is a huge advantage for many retailers as it allows them to constantly adapt their offerings to the market.
The benefits of the C2C model for buyers
- Cheaper prices – in many cases, products offered in the C2C model are cheaper than goods sold through traditional retail channels, especially when it comes to second-hand goods. Buyers can often get products for a fraction of the original price.
- Wider selection – Unique or rare products that are not commonly available in regular stores, such as vintage clothing, collectibles or items that are no longer manufactured, can be found on C2C platforms.
- Negotiation – on some online platforms and marketplaces it is common for buyers and sellers to negotiate on price, which allows a deal to be struck more favorably for both parties.
- A greener way to buy – for those who care about the environment, the C2C model is a great option. When you buy used products, you are contributing to recycling and extending the life cycle of products, which means fewer things are thrown away unnecessarily. Every second-hand purchase is a step towards a more sustainable future, saving raw materials that would be needed to make new products.
- Direct interaction with the seller – C2C platforms allows for direct contact between buyer and seller, bringing a more personal and friendly atmosphere to the shopping experience. You can ask for product details, negotiate terms of sale, or get a personal recommendation directly from the seller. This approach leads to better satisfaction because you can be sure that the product meets your expectations.
- Fast and flexible transaction – buyers are able to quickly negotiate the price, agree on the terms of sale, and often pick up the product immediately, especially if the seller lives nearby. This saves time and shipping costs because you don’t have to rely on the delivery times of regular stores.
- Ability to evaluate the quality before purchase – unlike traditional e-shops where you have to rely on descriptions and photos, with the C2C model you often have the opportunity to see the product beforehand. Many sellers offer a personal handover where you can inspect the product and check its condition with your own eyes, which greatly minimizes the risk of dissatisfaction.
- Supporting local sellers – When you buy through C2C platforms, you are often supporting people in your area. Instead of large corporations, you’re helping individuals or small communities, with the added benefit of in-person pickup, which not only saves money but also the environment by reducing shipping costs.
Disadvantages and risks of the C2C model
- Risk of fraud – one of the main risks of C2C trading is the possibility of fraud. Since you are trading with individuals who may not always be reliable, there may be situations where the buyer does not receive the goods or the seller does not get paid. While platforms offer protection mechanisms such as seller ratings and secure payment methods, fraud can never be 100% prevented. Buyers and sellers should be cautious and use verified communication and payment methods to minimize this risk.
- Insufficient or no guarantee – Unlike buying in regular stores where you have a guarantee and the option to return the goods, C2C transactions often contain no guarantee. If the product you purchased turns out not to work or is not in the advertised condition, it is often difficult to resolve the situation. Refunds or exchanges are complicated in this model, so it’s important to read product descriptions carefully and communicate with the seller before purchasing to ensure that the goods meet your expectations.
- Quality of goods – as many products sold through C2C platforms are second-hand platforms, the quality of goods may be lower than new products. Buyers should be aware that wear and tear or defects may be present, even if the seller has not explicitly stated this. It is advisable to read reviews carefully, assess the condition of the goods from photographs, and (where possible), communicate directly with the seller to avoid unpleasant surprises.
- Shipping and logistics – In C2C transactions, the buyer is often responsible for arranging the shipping of the purchased goods. This can bring complications, especially when bulky or fragile items are involved. Sellers may not always offer professional packaging or secure shipping arrangements, which can lead to damage during transit. In addition, there may be additional costs associated with shipping that can reduce the attractiveness of a low-priced product. Similarly, the option of having multiple products from different sellers delivered from one marketplace as a single shipment is often not an option, simply because ecology and economics often take a beating here. In many cases, you will have to pay postage several times (the only exception is perhaps Temu).
- Communication and dispute resolution – business between individuals can sometimes lead to communication problems, whether it’s misunderstandings about the condition of goods, delivery dates, or payment methods. If a dispute arises, resolving it can be lengthy and challenging because platforms have limited powers to enforce fair agreements between parties. This factor can increase stress and make the overall shopping experience more difficult. On the other hand, a lot of these platforms allow a full refund (money back into your account) within 30 days, with the understanding that they will then sort out any discrepancies and misunderstandings with the seller themselves, taking all the risk for you.
- Time-consuming – shopping in the C2C model can be more time-consuming than in a regular retail store. Buyers often have to search for the right products, compare offers, communicate with sellers, and sort out the details of the transaction. In addition, goods sometimes need to be picked up in person, which can mean additional travel costs and lost time. This tediousness can discourage those who want a quick and hassle-free purchase.
- Risk of inadequate product descriptions – some sellers may not provide all important information about the product, which can lead to buyer dissatisfaction. The product description may be incomplete, and the buyer may not know about any defects or wear and tear until they receive the item. This is particularly a problem with technology or more complex products where defects may be hidden.
- Risk of payment fraud – in some cases, both sellers and buyers may face the risk of payment fraud, especially if they do not use secure payment methods. It may be that the seller receives a false payment or the buyer pays for goods that are never delivered. It is therefore important to always use verified payment systems that offer transaction protection.
What platforms use the C2C model?
Platforms that use the C2C (Consumer-to-Consumer) model provide a unique environment for direct interaction between users, where individuals sell their products or services to other individuals without the involvement of large corporations or commercial intermediaries. Below are some of the most well-known platforms of this type and what makes them unique.
- eBay – eBay is one of the oldest and most well-known C2C platforms in the world. This platform allows users to sell everything from trinkets to cars or real estate. Its global presence makes eBay a great place for users who want to offer their products to a wider international community. A unique feature of eBay is the auction option, where buyers can compete for items and sellers have the opportunity to get the best price for their items. In addition to auctions, it also offers fixed prices, which provides flexibility in business models.
- Vinted – specializes in clothing, accessories, and other fashion pieces. This platform has become especially popular among people who want to sell used or new clothes that they no longer use. Vinted is a great place for sustainable fashion because it allows users to give unused items a second chance. Users on the platform can not only sell their products but also interact with other community members, creating a sense of mutual support and sharing.
- Airbnb – Airbnb is unique in that it offers users the ability to rent out their properties – entire houses, apartments, or just rooms – to other users. The platform has revolutionized the travel industry by allowing regular people to make money from their vacant properties while giving travelers a more affordable and authentic alternative to traditional hotels. Airbnb is built on trust and a review system where landlords and renters rate each other’s experiences.
- Aukro – Czech auction platform Aukro operates on a similar principle to eBay and is focused on the local market. Users can sell products both at auction and at fixed prices. Aukro has become popular for its accessibility and simplicity, where anyone can easily start selling. The local focus makes Aukro ideal for those who want to sell or buy products from users in the Czech Republic without the complexities associated with international stores.
- Etsy – a platform focused on selling handmade goods, art, vintage products, and craft supplies. It excels at providing a space for creative makers who want to sell their original products directly to customers. Etsy is great for artists and small business owners who want to expand their markets without having to set up their own e-shop.
- Facebook Marketplace – offers an easy way for individuals to sell and buy items in their region. It stands out because it is easily accessible and linked to a user’s Facebook profile, which adds a degree of trust. Additionally, it has a great advantage in its large user base.
- Letgo – originally a mobile app that allows you to sell and buy used goods in your area. It specializes in local markets, which facilitates direct interaction between seller and buyer. It features an intuitive interface and ease of use, making it an ideal platform for quick sales.
- Depop – Focused on fashion, especially selling unique pieces of clothing, vintage fashion, and streetwear. Depop is especially popular among young users who can buy and sell stylish clothes here. It stands out for its community and fashion focus, which appeals to fashion-oriented consumers.
- Poshmark – a similar platform to Depop but more focused on the higher end of clothing and accessories. Users can sell new or gently used luxury products. It stands out because it focuses on premium and branded products, and provides opportunities for community interaction and sharing fashion tips.
- Craigslist – An older platform that offers a wide range of products and services for sale or exchange. It stands out for its simplicity and wide range of categories, from car sales to real estate listings. Craigslist is widespread in the US and other countries, although it lacks the modern design and some of the security features offered by newer platforms.
Do Shein and Temu also fall under the C2C platforms?
Shein and Temu are not part of the classic C2C model, as they operate more like B2C platforms.
- Shein – operates primarily as a B2C (Business-to-Consumer) platform, where the company sells goods directly to consumers. Shein offers a wide range of clothing and accessories that are manufactured and distributed by the company, not by individuals. Customers buy directly from Shein, not from other consumers.
- Temu – Like Shein, Temu is a platform focused on selling products from manufacturers and retailers directly to consumers, which puts it in the B2C model. Unlike C2C platforms where consumers sell goods to each other, Temu companies also sell their products mainly to end customers.
What are the trends in C2C commerce?
The C2C model is constantly growing and adapting to new technologies. With the advent of mobile apps, buying and selling between consumers has become even easier and more accessible. For example, platforms such as Facebook Marketplace or WhatsApp now allow people to sell and buy goods directly through social networks, bringing greater convenience.
Another trend is the rise of the so-called sharing economy. Increasingly, people are renting out their possessions (cars, houses, tools, etc.) to other people, which is very beneficial from an environmental point of view and saves resources for both parties.
The future of C2C trading
The C2C model is very flexible and is currently growing thanks to digital technologies. With the further development of mobile platforms, digital wallets and social networks, the C2C model is expected to grow even more. Consumers are becoming increasingly aware of the benefits of buying from other consumers, which not only allows them to save money but also to get unique products or earning opportunities.
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