C2C wasn’t a thing before the internet; it is now that we’re seeing this type of business model become super popular. And for those who have no idea about what it is, how it works, why it is an option, what the challenges are associated with it, and what the real-life examples of a C2C business are, then just keep on reading. Why? Well, we’re here to make things super simple to understand for you with the proper definition, examples, advantages, and disadvantages of the C2C business model. Alright, let’s get going now.
What Is the C2C Business Model?
In the simplest words possible, see, the C2C model is the selling process by which people offer their goods or services to other people directly without any intermediaries, generally using the internet as a platform. Hence, the transaction is no longer carried out in a store or by a company, and you are interacting with another human being, buyer and seller, one-on-one. Suppose you have an outdated phone or a guitar collecting dust. You don’t have to go to a store to get the best value for your stuff; rather, you put it up for sale on OLX-type platforms, eBay, or Facebook Marketplace, and in a few moments, a user will purchase it from you. There is no intermediary retail chain, no hefty commission deductions, but rather plain and direct transactions.
Examples of C2C Platforms
Here are some of the super popular C2C platforms out there:
- eBay
- OLX
- Craigslist
- Etsy
- Facebook Marketplace
C2C Business Model Advantages
1. Low Cost for Sellers
You do not necessarily need to have an actual store or a large initial investment. In fact, the majority of C2C platforms do not cost anything or require only a minimal amount to get started. From the comfort of your home, it is possible to put your things on the market regardless of the quantity.
2. Wider Reach
By using such platforms as eBay or Facebook, a seller is no longer bound to the local reach only but has the opportunity to get in touch with a large number of buyers like a broader audience. As a result, sellers will be able to find buyers who are interested in their products, which is true even for unusual or rare items.
3. More Earnings for Sellers
Pretty much all the money a seller makes from a sale is theirs since there is not a retailer or wholesaler who will take a part of it. What is the outcome? The seller gets the better profits and can set the prices as he/she wishes.
4. Easy to Get Started
Creating a seller’s account and adding an item are actions that are achievable in a matter of minutes. People with no business background can manage it. Simply add an image, compose a brief description, and then you can start the selling process.
5. Trust Through the Platform
Most platforms have integrated trust elements such as ratings, reviews, and buyer protection that are visible to users and you are not required to establish a personal brand or reputation from the beginning.
6. Lower Prices for Buyers
Most of the time, the sellers in C2C have no additional expenses, and that is why they can sell their products for a lower price. This is why the consumer-to-consumer marketplace is perfect for those buyers who are on the lookout for good bargains in used or almost new products.
7. More Options
C2C platforms have an extensive selection of products, including common and rare items. If you need a cheap product or a unique collectible, it is highly likely that you will get it there.
8. Fast Transactions
There is absolutely no need to endure the store’s policies or wait for a long time. Transactions are done directly between the buyer and the seller, and in most cases, it is a quicker delivery with fewer processes.
9. Unique or Rare Items
There are a lot of sellers who provide unique or antique products that are not available in normal stores. Thus, second-hand markets get a vibe of the treasure hunt, which is a kind of discovery process and makes shopping more enjoyable.
C2C Business Model Disadvantages
1. Too Much Competition
When you try to sell something, chances are you are not the only one who has an old phone or a T-shirt and wants to list it. It can be difficult to make your listing noticeable among hundreds of similar ones that have already been created.
2. Delayed Payments
Sometimes buyers are so slow to pay that they end up cancelling at the last minute. Moreover, there are situations where money is temporarily blocked by certain platforms, and this can be a hassle if you need to have access to your funds quickly.
3. Platform Fees
Although most platforms are less expensive than traditional models, they still maintain listing or transaction fees. These may become a considerable sum over time and reduce the amount of your profits.
4. Hard to Scale
In case you aim to make the selling process your full-time business, then the daily tasks of managing several listings, taking care of customer queries, and handling shipping orders can get you worked up in no time if you do not have anyone to assist you.
5. Scam Risk for Sellers
Scammers who buy goods can pretend they have made payments or issue false refund requests. In case the platform lacks sufficient security for the sellers, you might end up giving away your product and money.
6. No Quality Check for Buyers
Products that are sold via C2C platforms have not been checked by any official inspection. You could receive a product that is defective, counterfeit, or in which the information is not accurate.
7. No Return or Refund Guarantee
The majority of C2C sellers typically don’t provide the option of returns or any kind of warranty. Generally, the item is yours after the purchase; hence, in the case that it is different from what you assumed, there is nothing you can do with it.
Conclusion
Isn’t it easy now to form a conclusion of your own regarding the C2C business model after we have put the definition, examples, the good sides, and the challenges that come with it? Well, that was our main aim, and we hope we succeeded in that by the end of this post today.