Customer To Customer (C2C)

Filed Under:
Dictionary Says

Definition of 'Customer To Customer (C2C)'


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.

Investopedia Says

Investopedia explains '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.

comments powered by Disqus
Hot Definitions
  1. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  2. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  3. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  4. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  5. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  6. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
Trading Center