With customers relying heavily on e-shopping, C2C websites provide numerous opportunities. It is estimated that around 95% of purchases will be done through e-commerce by 2040.
This article will highlight five main reasons why launching your C2C marketplace is crucial. Let’s see how.
What is a C2C marketplace?
A C2C (customer to customer) marketplace website is a business model in which customers can trade among themselves. eBay is a famous example of a C2C site with 185 million active users.
Let’s now briefly understand the main differences between different business models.
What is the main difference between C2C, B2C, and B2B platforms:
- Consumer-to-consumer (C2C)
There is no mediator involved in a C2C marketplace. The same user can be both a consumer and a provider.
- Business-to-consumer (B2C)
Customers purchase products or services from the business entity for personal use.
- Business-to-business (B2B)
Here, the transaction takes place between two business entities. This marketplace demands huge investment. B2B transactions involve the trading of fuel, medical equipment, vehicles, etc.
Key functionalities of a C2C marketplace
Following are a few key functionalities of a C2C marketplace:
A C2C marketplace divide user accounts into two types: sellers and buyers. It enables both of them to receive email notifications, transaction details etc.
- Search and filters
It offers an interface where site users can provide specific inputs about the products they are looking for. Besides that, it also has a tool that helps users filter search results by particular features and pricing options.
- Ratings and feedback
It offers a product rating system, which buyers can modify. Thereby, users can share their feedback.
- Buyer-seller communication
It provides a platform where both buyers and sellers can communicant and minimize the order cancellation and return rate.
- Payment gateways
It offers multiple payment solutions like WePay, PayPal, etc., to facilitate transactions directly on your platform.
The significance of launching a C2C marketplace
Following are the five reasons why launching a C2C marketplace is crucial:
1. Rising popularity of online marketplaces
An online marketplace is among the most preferred method for e-shopping. This shift in shopping habits become even more prominent in the covid-led pandemic situation.
2. Scalable business model
C2C is a scalable business model. It helps vendors reduce the marketing costs without many audits.
3. Easy management
- Little investment
As the owner of a C2C marketplace, you don’t have to cover the packaging and shipping costs. Thus, a C2C model does not require a huge investment.
- Warehouse management
It automates various warehouse management tasks and helps you maintain accurate records.
- No need for a large workforce
It does not need a sales staff. You can scale up operations as sales grow; you don’t have to hire a large workforce.
- Generating high traffic
As users can share wishlists and offer feedback, generating high traffic with the C2C model is easier.
4. Variety of monetization models
A C2C platform helps you ensure the long-term viability of your business. Following are a few monetization models in the C2C marketplace:
Subscriptions: It allows the sellers to choose the plan type in exchange for upgrades. Moreover, VIP subscribers can opt for customizable selling tools, advanced reports, storefronts, and more.
Commissions: It is one of the most economical monetization models that allow sellers to pay fees only when they sell any product or service.
Listing fee: With this model, you can charge the vendors for listing the items on the website. However, it can push away potential users if your marketplace is launched recently.
Premium listings: Through premium listings, vendors can place their offers high on the search results.
5. Quick transaction leads to quick revenue
- Best price satisfaction: A C2C site brings together many vendors on a single platform. Thus, users can choose from multiple options, compare and negotiate different prices. Ultimately, it leads to the best value for money effect and avail products at comparatively cheaper rates.
- Fast visitor-to-customer conversion: C2C marketplace usually has a broad range of visitors. Thus, the probability of converting most of them into customers is higher.
- Not much user data is required: There are no middlemen involved, so that the listing process will be completed within a few steps.
- Convenient: The uncomplicated designs of many C2C websites make it convenient for users to access a shopping cart from any page on the site.
A C2C business model is not just about the volume of various transactions made online; it’s truly about initiating and developing close ties with existing users. Besides that, it holds the ability to reach a large audience.
It offers products at comparatively cheaper rates. However, building a thriving C2C marketplace requires careful planning. Thus, invest in C2C marketplace development with proper planning and pave the way for success.