While the term C2C may sound foreign to most people, this concept has been used by some of the most influential companies out there. C2C corresponds to ‘Customer to Customer’, which refers to the trade carried out between two customers. The companies do not intervene directly in this transaction since they are not the suppliers of the products and services, but the consumers themselves.
The main advantage of this e-commerce model is the possibility of carrying out low-cost transactions, where both parties can take great advantage of not having intermediaries who raise prices. The forms of payment depend on the agreement between both parties, and, in general, delivery is made at the same time as payment, eliminating the waiting times that usually occur in B2C (Business to Consumer) commerce.
A pattern that is easy to observe when looking at the top companies out there is that they are all targeting a single niche. While generally, businesses are looking to expand, these companies have started from one simple idea and rose to multiple ventures but always kept their purpose intact.
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Real World C2C Examples
There are plenty of real-life implementations out there that have surpassed expectations. Every company on the list started off as a simple business that grew to gigantic proportions over the course of several years. Let’s take a look at these companies and how they managed to incorporate the C2c model.
In exchange for providing space, tools, and security for this type of operation, the web portals that host this type of commercial activity are entitled to receive a certain commission for each sale that takes place on their platform as payment for their services.
As the Internet has spread and reached practically all homes, this type of transaction has grown rapidly until it has become a daily routine today for millions of people globally. Much of the leading role in this regard is occupied by sales between individuals of second-hand products.
Fiverr
One out of many freelancing sites Fiverr managed to surpass its competition by functioning on a very simple formula. As the name suggests, every gig offered on this site starts at only five bucks. It’s simple as that. Freelancers will register on the website, post their gig and wait for clients to message them regarding their services, while the company acts as a middle-man between the two parties.
Fiverr will take a small percentage of your total income, which usually is deducted before the withdrawal. The Israeli company has expanded over the years and now amass many more domains and offers creatives more incentives. Freelancers can choose to charge more for extra services, as well as set longer time-frames. The C2C business offers all the tools necessary for people to sell their services, but also comes in handy for buyers who can sort individuals by reviews, number of completed gigs, and time needed to finalize projects.
Uber
The popular ride-sharing app is the epitome of consumer-to-consumer business with its innovative take on transportation. Uber is one of the biggest taxi companies in the world without owning a single car, had revenue that amounted to 11 billion dollars back in 2020, and is available in over 900 cities across the world. Currently, the company has extended into other markets where it keeps the same formula. For example, Uber Eats was launched to rival companies such as Just Eat, DoorDash, Grubhub, Fooda, and many more food delivery services.
Uber has a business model that’s simple to understand; drivers sign up through third-party companies or partner up directly with them and then get listed on the app. Here, customers can solicit drives at any time of the day, and payments are made at the end of the trip. One of the most convenient things about Uber is that you can choose different payment methods such as cash and that there’s always a ride available. This is a win-win situation for both the drivers who can choose to work at any time they want, but also for the clients who get to enjoy the trips in different cars and with people from all walks of life.
eBay
Another very popular service out there that many people have already heard about and possibly even sold or bought items from is eBay. The main premise of the website is very simple to understand, yet it revolutionized the way we thought about e-commerce forever. Long gone were the days of garage sales or dropping items at pawn shops. With eBay, people have been able to list their items in a convenient way and sell them to the highest bidder. On the other hand, buyers are protected through various policies that will ensure them carefree shopping. The fact that you can also buy everything you want on eBay is another plus, the website not being limited to a certain type of items. From gardening tools to TVs, users are delighted with a plethora of entries. To distinguish themselves more from other decent competitors such as Amazon, eBay also allows small stores to list their products on the website.
Airbnb
Becoming one of the most successful rental platforms on the market did not happen overnight for this American company. They solely operate by allowing space owners to rent their rooms, houses, or spaces to travelers. Airbnb does not own any building, and their whole website functions as a marketplace. All reservations are made through the website and include a fee that goes directly to Airbnb. Probably the best part about the platform is that you can switch your roles at any point without the need of creating a separate account. This means that hosts can become travelers and vice-versa. Many people are afraid of being scammed when booking private accommodation online. With Airbnb, this fear disappears since the site displays all the reviews of the previous tenants. It’s worth knowing that guests are also receiving reviews.
Airbnb constantly offers discounts and manages to ensure safety and high-quality standards through their implementation of badges. Here, some of the best hosts will be highlighted and their locations as well. No matter what type of accommodation you are looking for, Airbnb is sure to have it – from houses in the countryside to flats in the city, passing through chalets on the beachfront, modern studios, luxury villas, and even the occasional castle.
Airbnb offers us a genuine experience that a hotel will never offer us. Staying in a private house makes you experience the warmth of that home, that family, and that neighborhood. No hotel chain can provide an emotion similar to this.
Final Words
In conclusion, we can clearly see that some of the best companies on earth are taking advantage of the C2C model and are constantly evolving it throughout their expansions. Unfortunately, this method brings downside as well when it comes to quality control.
Although companies are trying to look into this side of the business as well and implement control methods, this business area is still lacking, and hopefully, it will improve in the near future. The opinions of other users play a very important role in this type of transaction since they allow us to know the experiences that other consumers have had with that seller.
Read also: How To Accelerate B2B eCommerce Sales for An Auto Parts Business