C2C ecommerce solutions to take full advantages of business opportunities

For many people, C2C eCommerce is probably a fairly new term, because usually, they are only familiar with B2C, B2B, etc. However, while you haven’t heard of it, there are a lot of people who have seized the opportunity and succeeded with this business model. Most of them already know C2C ecommerce solutions in order to take full advantage of business opportunities. In this article, ArrowHiTech will give you an overview of the C2C model as well as outstanding C2C ecommerce solutions you need to know. Hence, explore with us right now!

>>> Refer to: D2C ecommerce solutions to accelerate your earnings and build a meaningful relationship with consumers

What is C2C eCommerce?

C2C eCommerce refers to consumer-to-consumer commerce. It means one person selling goods or services to another person over the internet. This transaction is handled by a third party who takes care of the transaction details in exchange for a fee for connecting the parties. Besides, eBay, Amazon Marketplace, and Etsy are prime examples of C2C businesses. When it comes to technical, it is classified as consumer-to-consumer because the seller is not a traditional firm. 

what is c2c ecommerce

In particular, the main goal of this eCommerce model is to allow one party to sell directly to customers without having to invest a lot of money in setting up and running an online store. Because the seller isn’t investing capital in infrastructure like they would in a regular business, they may keep more of their profits. 

Overview of Consumer-to-consumer commerce

As the COVID 19 epidemic spread, digital adoption in Europe increased by approximately 14%. In fact, this is a number that would have taken most industries two to three years to achieve at pre-pandemic growth rates. And it’s continuing expanding rapidly. Between 2020 and 2024, we expect e-commerce to grow by at least 8% to 9% a year in France and Germany. Plus, 6% to 7% a year in the United Kingdom, 10 to 12% a year in Italy and Spain. And, more than 20% a year in Asia. 

Moreover, the transaction volumes of this ecommerce model for mostly used goods have increased on both horizontal and vertical sites. For instance, Germany’s eBay Kleinanzeigen and Facebook Marketplace, which cover a wide range of categories and verticals sites, such as Lithuania’s Vinted, a pan-European C2C site for used fashion items. In addition, millions of individuals spent their time during lockdowns cleaning out their closets, lofts, and garden sheds and selling their unwanted items online in order to boost the increase. 

C2C ecommerce

Alternatively, based on customers’ increased concern about sustainability, trade will continue to grow. Furthermore, many researches indicate that there may be room to stimulate and monetize further development by shifting away from the traditional C2C business model of charging sellers for listing things and instead charging purchasers.

Additionally, according to the research on over 3000 consumers that use C2C marketplaces in Germany, the Netherlands, and the United Kingdom during the COVID outbreak, the C2C categories traded take place the most frequently. 

Specifically, fashion and family items are the most popular secondhand categories in all three nations and this category has been doubled by 2020. However, the increase is not entirely due to the COVID-19 pandemic. Besides, it is expected annual growth of roughly 35 percent over the next four years. Plus, consumers of all ages will trade more, but the youngest (Generation Z, primarily 15- to 24-year-olds) will be the most active. They currently account for 43 percent of market volume, with that proportion expected to climb to 47 percent by 2025.

Consumer-to-consumer commerce ecommerce statistic

Additionally, an average of 30% of those polled said they were buying more secondhand fashion goods online before the pandemic than they were before. They claimed that the main objective was to save money. However, an average of 38% claim it was due to a desire to produce less trash.

overview

A new model

In fact, a move to a model that taxes the buyer could help C2C transactions grow even faster. C2C sites have generally been free to buyers, a strategy pioneered by eBay’s founder, Pierre Omidyar, who began a private online auction in 1995 in California. Plus, traffic of the site suddenly became so high that Omidyar’s internet provider raised his prices, prompting the entrepreneur to start charging sellers a listing fee.

Since then, a slew of other C2C platforms have developed, each with its own set of economic models. For instance, eBay Kleinanzeigen, Facebook Marketplace, and Gumtree, focus on transactions between people in the same local community and are completely free to use for sellers. They rely on money from third-party advertisers who are drawn to high-traffic sites. Some, like eBay, impose a listing fee based on the value of the items sold. Some, like Vestiaire Collective (a site for higher-end used clothing), go even further down the value chain, providing authenticity tests for some branded items. Best of all, one thing that all of them have in common is that the platform has been essentially free to buyers. 

Consumer-to-consumer commerce solutions

As the C2C eCommerce field has grown, a few entrepreneurs have tried to monetize their platforms by charging buyers fees. After that, the transaction is monetized by charging a commission or, more typically among newcomers, arbitrage opportunities linked with the provision of extra services. Several Asian players, such as Japan’s Mercari, are making significant shifts to transaction-based monetization via escrows. Such commissions are frequently as high as 10% of the transaction amount. 

Additional services

Furthermore, additional services are highly valued by buyers. In particular, buyer protection, in which payments are repaid in the event of nonshipment or poor-quality goods, is ranked as the most important element that would motivate consumers to buy more used goods by respondents. Besides, the respondents also place a premium on niche product authenticity certification. Not only that, C2C marketplaces are also diversifying their seller offers by including marketing, customer-insight, and price tools, as well as payment systems, sales training, and sales development. 

Pros and cons

Pros of C2C eCommerce

First and foremost is the advantages for sellers. C2C platforms allow sellers to post an item for sale without having to pay for additional advertising, marketing, or legwork. Besides, a seller can also use the marketplace’s web presence to get their product to the top of many search engine results. Moreover, this form of eCommerce can not only help merchants reach a greater audience than they could on their own, but it can also help them do so faster. Best of all, sellers can benefit a lot because they can vary their level of commitment from day to day, whereas a traditional firm would keep them busy 24 hours a day, seven days a week. 

What’s more, buyers also gain lots of benefits from C2C ecommerce. For more details, consumers can take advantage of this cheaper price that a retail firm might not supply. Because the seller controls the pricing and can eliminate the overhead costs associated with typical retail enterprises. Plus, C2C commerce also enables buyers to shop from the comfort of their own homes.

Overall, a well-designed C2C marketplace is a win-win situation for both customers and sellers when done correctly.

Cons of C2C ecommerce solutions

One of the most difficult aspects of C2C eCommerce is payment processing. For more details, if there is an issue with the buyer’s funds, it can be difficult for a seller to make a customer pay for an item that has already been dispatched. In contrast, in case buyers receive damaged goods, a seller may refuse to issue a refund. As a result, it leads to the status of alienating the customer from the C2C platform. Although the marketplace is not at fault for shipping or product quality in this situation, it suffers as a result of the seller’s conduct.

cons of consumer-to-consumer ecommerce

In addition, because of the policies set up for both sides of the C2C transaction, third-party consumer-to-consumer platforms like eBay or Amazon frequently assist in resolving some of these concerns. Sellers are compelled to accept these policies or risk losing their ability to sell on the platform. Following that, if a customer requests a refund, eBay maintains the right to take money straight from a seller’s bank account. And, if a buyer has a valid reason for returning an item, Amazon offers guidelines for sellers.

>>> Read more: Profitable B2C ecommerce solutions for retailers of all sizes

C2C ecommerce solutions to take full advantages of business opportunities

With simple website-building software, a single individual may establish a traditional storefront for their small business in a matter of hours. When creating a custom C2C business platform, this is just not an option. The fact that the off-the-shelf software and low-cost websites can’t handle as many things as you want. For instance, the traffic, the user interface, and the millions of SKUs involved with C2C needs. 

The ability of payment

The ability to collect payments is a must-have in C2C ecommerce solutions. There are many retailers that may be specialists in their area. But, the possibilities and intricacies of accepting payments can be intimidating, especially when there is an international component. What’s more, if you’re only familiar with online payments through the Cash App, PayPal, or Venmo, our C2C ecommerce solutions will help you choose from dozens of better payment processing options for your C2C platform. Best of all, these payment choices are fully integrated into the C2C platform. Thus, it allows you to concentrate on building your business.

Furthermore, the majority of C2C transactions take place without the buyer or seller ever having to communicate with one another. They will also happen without causing any complications that require you to intervene. Then, you need to consider the relationship between buyers and sellers first. For more details, if vendors aren’t providing the appropriate information, buyers may wish to ask specific inquiries about an item before purchasing it. On the other hand, sellers want to communicate without having to use a separate email platform. Then, customers will return to your C2C eCommerce service if communication is simple on both sides of the transaction. 

More crucially, you need to ensure that everyone who visits your website, whether a buyer or a seller, may contact you easily. Transactional issues will happen, even if they are unusual, and someone from your firm will have to deal with them.

best C2C ecommerce solutions

Crowdfunding C2C sites

In terms of crowdfunding C2C sites, platforms like Kickstarter, Indiegogo, and Patreon might not have buyers and sellers like traditional C2C websites. However, each still brings people together with a web-based platform to facilitate an exchange. Besides, there are many crowdfunding sites that work on the rewards system, where consumers pledge money in exchange for physical or digital perks once certain funding is reached. Moreover, the primary difference between this model and traditional C2C is that the exchange might never happen if the funding goal isn’t reached. 

In order to figure out which crowdfunding platform is best, it all depends on the needs of the sellers and the kind of buyers it attracts. Specialized crowdfunding platforms show up to cater to specific markets and particular tasks. In fact, there are a lot of opportunities abound for crowdfunding C2C platforms that focus on underserved online communities.

Wish to build your own successful business? 

To sum up, C2C ecommerce solutions play an extremely essential role for generating a successful business. Then, you will surely have a solid leg up in the global market. Moreover, in case you are planning to enter the C2C ecommerce market yet don’t know where to start, let’s CONTACT US. With many years of experience in Ecommerce development solutions, ArrowHiTech will meet all your requirements.

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