Customer To Customer (C2C)

What does 'Customer To Customer (C2C)' mean

Customer to customer (C2C) is a business model that facilitates an environment where customers can trade with each other. Two implementations of customer-to-customer markets are auctions and classifieds. Customer-to-customer marketing has soared in popularity with the arrival of the internet, as companies such as eBay, Craigslist and other sites have fostered greater interaction between customers. Customer-to-customer sites make their money from fees charged to sellers for listing items for sale, adding on promotional features and completing transactions. Also known as consumer to consumer, or C2C.

BREAKING DOWN 'Customer To Customer (C2C)'

C2C transactions generally involve products sold through a classified or auction system. Products sold are often used or second hand.

C2C is projected to grow in the future because of its cost-effectiveness, i.e. it minimizes the cost of using third parties. Retailers see it as very important, given the growing use of social media channels by consumers to share their opinion about a specific stock, which often drives increased traffic to stores.

However, C2C has some issues such as lack of quality control or payment guarantees. There’s also the occasional difficulty in making credit card payments. The rise of Paypal over the years has eliminated the latter problem.

RELATED TERMS
  1. Customer

    An individual or business that purchases the goods or services ...
  2. Reverse Auction

    A type of auction in which sellers bid for the prices at which ...
  3. Auction House

    A company that facilitates the buying and selling of assets, ...
  4. Mass Customization

    The process of delivering wide-market goods and services that ...
  5. Customer Relationship Management ...

    The principles, practices, and guidelines that an organization ...
  6. Dollar Auction

    The basic dollar auction is based on the auction of a $1 bill ...
Related Articles
  1. Budgeting

    The 4 Best Alternatives to Craigslist

    Understand the pros and cons of Craigslist, and learn why alternative sites such as eBay Classifieds, Adoos and even Facebook might be better options.
  2. Economics

    What's Involved in Customer Service?

    Customer service is the part of a business tasked with enhancing customer satisfaction.
  3. Home & Auto

    Should You Buy A House At Auction?

    The traditional real estate market isn't the only place to conduct your home search. Auctions also bring many buying opportunities.
  4. Economics

    How Big Data Has Changed Marketing

    Big data has enabled marketers to enhance their customer engagement and customer retention strategies by providing insight into behavior and thoughts.
  5. Stock Analysis

    With PayPal Gone, Can eBay Survive?

    For eBay (NASDAQ: EBAY), the recent spinoff of payment processing service PayPal, along with the sale of its enterprise unit, has arguably stripped away all that was of greatest value to the ...
  6. Bonds & Fixed Income

    Auction Rate Securities: Bidding On The Long Run

    These investments do better with a long-term horizon. Should you buy them before they're going, going, gone?
  7. Home & Auto

    Should You Buy A House At Auction?

    In theory, many of the best properties are auctioned. But auctioned properties aren’t always hidden gems.
  8. Fundamental Analysis

    The Importance Of Analyzing Accounts Receivable

    While investors often focus on revenues, net income, and earnings per share, they should not overlook the importance of analyzing accounts receivable.
  9. Personal Finance

    8 Secrets For Selling On The New eBay

    If you're a new seller on E-Bay or an experienced veteran, here are a handful of useful, not widely-known tips for effective selling.
  10. Investing

    eBay Vs. Amazon Business Model

    For sellers looking to unload grandma’s things, the decision to go online is easy, but, they still must choose which site to list with: eBay or Amazon.
RELATED FAQS
  1. How does a customer base dictate goodwill?

    Find out how a customer base dictates the value of the goodwill by providing a ready market for its products and spreading ... Read Answer >>
  2. Can companies insure their accounts receivable?

    Understand what credit insurance is and how it protects companies against payment problems they may encounter in trying to ... Read Answer >>
  3. How can small businesses manufacture demand?

    Create demand for a small business product or service by focusing on the brand and market. Continue to learn offer excellent ... Read Answer >>
  4. How long are accounts receivable allowed to be outstanding?

    Learn about accounts receivable, including how long they typically remain outstanding, and how their payment or lack of payment ... Read Answer >>
  5. What metrics are used to gauge the effectiveness of a marketing strategy?

    Understand why companies need sound marketing strategies and how they are able to accurately measure effectiveness of marketing ... Read Answer >>
  6. What does it mean when they refer to the churn rate of a telecommunications company?

    Learn what companies in the telecommunications industry mean when they refer to a churn rate, and discover tactics companies ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center