Customer-to-customer (C2C) is a business model where consumers trade directly with each other, typically facilitated by a third-party online platform. This model contrasts with business-to-consumer (B2C) and business-to-business (B2B) models. The platform provider is not the seller but an intermediary that enables the transaction, creating a market for second-hand goods, handmade items, or collectibles.
The C2C model fundamentally democratizes commerce by removing traditional intermediaries like retailers and wholesalers. In this framework, an individual can act as both a buyer and a seller. The enabling third-party platform provides the necessary infrastructure, including user profiles, search functionality, messaging systems, and often payment processing. The success of a C2C platform hinges on its ability to attract a critical mass of both buyers and sellers, a network effect where the value of the service increases as more people use it.
Historically, C2C transactions existed in forms like garage sales, flea markets, and classified ads in newspapers. The internet revolutionized this by removing geographical barriers and drastically reducing transaction costs. Early platforms like eBay, founded in 1995, demonstrated the immense potential of this model by creating a global marketplace for virtually any item. The platform’s role is crucial; it must establish rules, handle disputes, and, most importantly, foster a sense of trust among strangers to encourage transactions.
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