Customer-to-Customer (C2C)

What is C2C?

Customer-to-customer (C2C) is a business model in which individual consumers sell goods or services directly to other consumers, usually using a third‑party platform to list, discover, and complete transactions. Common implementations include online classified ads and auctions.

How C2C works

• Sellers list items or services on a platform; buyers browse and purchase or bid.
• The platform facilitates discovery, payment processing, and often dispute resolution, but typically does not hold inventory or provide the product itself.
• Sellers often benefit from lower overhead and direct access to niche buyers; buyers gain access to unique or used items that may not be available through traditional retail.

Examples of C2C platforms

• Craigslist — classified listings, largely person-to-person and often completed in person.
• eBay — supports fixed-price listings and timed auctions.
• Etsy — focuses on handmade, vintage, and craft supplies; supports small sellers with tools and storefronts.
• Marketplaces and payment tools frequently used in C2C transactions include Amazon Marketplace, AliExpress (marketplace models vary), PayPal, Venmo, and Zelle.

Revenue and growth drivers

C2C platforms typically generate revenue from:
– Listing fees and final sale commissions
– Promotional or featured listing fees
– Payment processing fees

Growth drivers:
– Declining costs of third‑party platforms and payment systems
– Increased consumer adoption of online marketplaces and the sharing economy
– Social media and online channels that surface used or unique items to potential buyers

Special considerations and risks

• Quality control: products sold are often used or from individual sellers, so consistency and quality vary.
• Payment and fraud risk: buyer/seller scams, chargebacks, and limited guarantees can occur; escrow and reputable payment processors mitigate some risk.
• Moderation and safety: some platforms (e.g., largely unmoderated classifieds) have greater exposure to scams and unsafe transactions.
• Niche competition: many platforms target specific markets, which can be advantageous for specialized sellers but fragment demand.

How C2C differs from related models

• C2C vs P2P: Both involve person-to-person exchanges, but C2C usually involves a commercial platform acting as an intermediary. P2P (peer‑to‑peer) often implies direct exchanges without a central marketplace.
• C2C vs B2C: B2C (business‑to‑consumer) involves businesses selling directly to consumers; C2C involves consumers selling to other consumers, typically using a platform.

Bottom line

C2C marketplaces let individuals buy and sell directly to one another with the assistance of third‑party platforms. They offer cost-efficient, flexible channels for unique and used goods, but buyers and sellers should be aware of quality, payment, and safety risks and choose platforms and payment methods that provide appropriate protections.