Customer To Customer (C2C)

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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.

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.

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