C2C

Definition

C2C, or consumer-to-consumer, refers to the e-commerce model where transactions occur directly between individual consumers without the involvement of a business. This type of transaction allows consumers to buy, sell, or exchange goods and services with one another, often facilitated through online platforms or marketplaces.

5 Must Know Facts For Your Next Test

1. C2C e-commerce allows consumers to leverage online platforms to sell their personal items, such as used goods, handmade crafts, or unique experiences, directly to other consumers.
2. The rise of online marketplaces, such as eBay, Craigslist, and Facebook Marketplace, has significantly contributed to the growth of the C2C e-commerce model.
3. C2C transactions often involve a lower cost for consumers compared to traditional retail channels, as they can bypass intermediaries and negotiate directly with the seller.
4. Collaborative consumption, enabled by C2C platforms, has led to the emergence of the sharing economy, where consumers can rent or borrow goods and services from one another.
5. Trust and reputation management are critical factors in the success of C2C e-commerce, as consumers rely on reviews, ratings, and feedback to assess the reliability of their peers.

Review Questions

• Explain how the C2C e-commerce model differs from traditional retail channels.
  • The C2C e-commerce model differs from traditional retail channels in several ways. First, it involves direct transactions between individual consumers, rather than between a business and a consumer. This eliminates the need for intermediaries, such as retailers or wholesalers, allowing consumers to negotiate prices and terms directly with one another. Additionally, C2C platforms often provide a centralized marketplace where consumers can list and purchase a wide range of goods and services, including used items, handmade crafts, and unique experiences. This model enables greater access, flexibility, and cost-savings for consumers compared to traditional retail channels.
• Discuss the role of online marketplaces in the growth of the C2C e-commerce model.
  • Online marketplaces have played a crucial role in the growth of the C2C e-commerce model. Platforms like eBay, Craigslist, and Facebook Marketplace have provided the necessary infrastructure and tools to facilitate direct transactions between individual consumers. These marketplaces offer features such as listing management, payment processing, and reputation systems, which have helped to build trust and enable seamless C2C transactions. The widespread adoption of these online marketplaces has made it easier for consumers to buy, sell, and exchange a wide range of goods and services, contributing to the overall expansion of the C2C e-commerce landscape.
• Analyze how the C2C e-commerce model has influenced the emergence of the sharing economy.
  • The C2C e-commerce model has significantly influenced the emergence and growth of the sharing economy. By enabling direct transactions between consumers, the C2C model has facilitated the development of collaborative consumption platforms, where individuals can rent, borrow, or share goods and services with one another. This shift from ownership to access-based models has been driven by the convenience, cost-savings, and environmental benefits of sharing resources. The C2C e-commerce platforms that enable these sharing practices, such as Airbnb for vacation rentals and Turo for car sharing, have disrupted traditional industries and provided consumers with new ways to access and utilize goods and services. The rise of the sharing economy, fueled by the C2C e-commerce model, has transformed consumer behavior and led to the development of innovative business models that prioritize access over ownership.

Related terms

Peer-to-Peer (P2P): A decentralized network architecture where individuals can directly share resources and information with one another without the need for a central authority.

Online Marketplaces: Digital platforms that facilitate the buying and selling of goods and services between individual consumers, often by providing a centralized platform, payment processing, and other support services.

Collaborative Consumption: An economic model based on sharing, trading, or renting products and services, often facilitated through technology, enabling access over ownership.