Consumer-to-consumer (c2c)

Definition

Consumer-to-consumer (c2c) refers to a business model that facilitates the exchange of goods and services between individuals, typically through an online platform. This model has gained significant traction with the rise of e-commerce, allowing consumers to sell directly to other consumers without the need for a traditional retailer. C2C transactions often take place on platforms that provide the necessary tools for listing products, facilitating payments, and managing logistics.

5 Must Know Facts For Your Next Test

1. C2C platforms have revolutionized the way people buy and sell goods, empowering individuals to monetize their unused items or skills.
2. Popular examples of C2C platforms include eBay, Craigslist, and Facebook Marketplace, where users can list items for sale or trade services.
3. This model relies heavily on user-generated content, as sellers create their own listings and buyers leave reviews based on their experiences.
4. C2C transactions can reduce costs for consumers since they often allow for direct negotiation between buyers and sellers without retailer markups.
5. Trust and safety mechanisms are crucial in C2C environments, often involving ratings, reviews, and buyer protection policies to foster a secure marketplace.

Review Questions

• How do consumer-to-consumer platforms facilitate transactions between individuals, and what are some key features that support this interaction?
  • Consumer-to-consumer platforms enable transactions by providing users with tools to list products, manage payments, and handle logistics. Key features include user-friendly interfaces for creating listings, secure payment gateways to protect both buyers and sellers, and rating systems that build trust within the community. These elements ensure that consumers can engage in commerce safely and efficiently.
• Discuss the advantages and challenges of the consumer-to-consumer model in comparison to traditional retailing.
  • The consumer-to-consumer model offers several advantages over traditional retailing, such as lower costs due to the absence of intermediary retailers and increased convenience for users who can shop from home. However, it also presents challenges like ensuring product quality and managing disputes between buyers and sellers. Traditional retailers may have established trust with consumers through warranties and return policies, while C2C transactions often depend on user ratings to establish credibility.
• Evaluate the impact of consumer-to-consumer transactions on market dynamics and consumer behavior in today's digital economy.
  • Consumer-to-consumer transactions have significantly shifted market dynamics by increasing competition among sellers and providing consumers with more choices at competitive prices. This shift has empowered individuals to leverage their assets, leading to a rise in second-hand markets and collaborative consumption. Additionally, C2C interactions have influenced consumer behavior by fostering a sense of community and trust among users, ultimately transforming the way people perceive ownership and value in a digital economy.

Related terms

E-commerce: The buying and selling of goods or services using the internet, which encompasses various business models including B2B, B2C, and C2C.

Marketplace: An online platform that connects buyers and sellers, enabling consumer-to-consumer transactions through features like product listings and secure payment processing.

Peer-to-peer (P2P): A decentralized network model where participants interact directly with each other, often seen in financial transactions or file sharing.