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C2C Meaning (Business Model: All You Need To Know)

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What does C2C mean?

What are the essential elements you should know!

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Let me explain the meaning of C2C and how it works!

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What Is C2C

C2C, standing for “Customer to Customer” or “Consumer-to-Consumer”, refers to trade or transaction directly between consumers with one another without intermediaries. 

In most cases, C2C transactions or relationships are facilitated through online platforms such as auctions and classified websites.

In other words, using the Internet and e-commerce technology, a company can offer a platform where consumers are able to purchase goods and services directly from one another.

C2C companies are banking on the business model where they eliminate intermediaries in a transaction resulting in accelerated transactions for the customers and cost savings.

It is expected that the more e-commerce technologies advance the more the consumers’ demand for a shared economy increases, more C2C platforms will emerge.

The cost of building e-commerce sites or online platforms is declining and combined with more and more people using social media to communicate directly with one another, the C2C business model has become a crucial model in today’s economy.

C2C Definition

How do you define C2C?

According to Investopedia, C2C is defined as:

C2C represents a market environment where one customer purchases goods from another customer using a third-party business or platform to facilitate the transaction.
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In other words, where is an overview of what is a C2C:

  • A market environment
  • Customers purchase goods or services
  • From other customers 
  • Using a third-party platform 

Related Acronyms

Aside from C2C, there are other popular acronyms that are used.

Here is some other acronyms related to C2C:

  • C2C standing for “Corp to Corp” or “Corporation to Corporation” 
  • C2C standing for “Cam to Cam” referring to online remote conversations 
  • C2C for “Capacity to Change” in organizations
  • C2C for “Care to Chat” in online communications 
  • C2C for “Carrier to Carrier” in transportation 
  • C2C for “Cash to Cash” cycle in accounting 
  • C2C for “Concept to Consumer” in product design 
  • B2C standing for “Business to Consumer”
  • B2B standing for “Business to Business”
  • B2G standing for “Business to Government”

Types of C2C Businesses

There are different types of consumer to consumer e-commerce businesses, platforms, and websites.

The three most common types of businesses are “online marketplaces”, the “auction system” and the “classified system”.

One of the most popular online marketplace where consumers trade with one another is the Facebook Marketplace where anyone can buy and sell goods using the Facebook platform.

You also have Amazon, which is the world’s largest retailer offering both a “business-to-consumer” model and a “consumer-to-consumer” business model for trade.

For example, eBay allows customers to sell goods to one another in an “auction system” or based on a fixed price.

Anyone can go on eBay and sell a product to another person either by auctioning it or by selling it for a price he or she specifies. 

The transaction is done directly between the individuals without the involvement of eBay or any third-party company.

Another type of C2C business is a “classified” type of website.

For example, Kijiji is a website where you can sell your goods or services but you can also put classified ads for business opportunities, employment opportunities, or for anything else.

How C2C Works

Let’s look at how a consumer to consumer transaction works so we can better understand the concept.

Traditionally, customers were required to find products and services by looking for companies, businesses, retailers, manufacturers, distributors, or other organizations that offered the goods in question.

Buying goods and services directly from a company may cost the customer more as the companies tend to charge the cost of the product along with their profit margin.

On the other hand, a customer to customer platform allows anyone to offer a product or service directly to other customers eliminating the need to purchase through a particular company.

The e-commerce platforms offering C2C services tend to charge low fees or none at all, passing on most of the cost savings to the customers.

The way the C2C websites are able to generate revenues to operate is by either charging the customer a small fee to the customers for listing their goods or services or a percentage of the transaction or by letting clients use the platform for free in exchange for allowing ads and promotions to be displayed on the site.

C2C Characteristics

What are the main characteristics of a C2C business model?

Here is a list of the main features of a C2C business model:

  • They tend to be online 
  • Customers do not have to visit a brick-and-mortar store 
  • The C2C sites are convenient to use by customers
  • C2C e-commerce platforms tend to have low transactional costs 
  • There are no retailers, distributors, wholesalers in between customers 
  • Customers can more easily find certain goods and services 
  • The shared economy model promotes competition 

C2C Drawbacks 

Although there are many benefits for consumers to use C2C platforms to trade, we should also be aware of the possible drawbacks.

One of the most important factors to consider is the trustworthiness of the C2C platform.

In essence, you want to deal with a business that is credible, has a great reputation, and is legitimate.

Unfortunately, there are many scams and fraudulent activities online where different websites make various claims that are untrue or intended to defraud the users in question.

The second aspect to consider is the quality of the products and services purchased.

Since you are dealing with another individual, you should be careful that what you are paying for is truly what you are expecting to receive.

The third drawback is that you should make sure you are dealing with a credible organization that will properly transfer your money to the right person.

Again, you should be aware that there are many fraudulent schemes and activities online where consumers are encouraged to make payments, share their credit card information, or banking details.

Be sure you trust the organization that you are dealing with prior to sharing any personal data.

C2C Examples

With the growing popularity of the Internet, many C2C websites have emerged allowing for customers to interact with one another directly without the need of an intermediary business or organization.

Typically, C2C sites are auction sites or classified sites such as:

  • eBay
  • Etsy
  • Craigslist
  • Kijiji
  • Amazon

Meaning of C2C Takeaways 

So there you have it folks!

What is consumer to consumer? 

What does C2C stand for?

C2C stands for “customer-to-customer” or “consumer-to-consumer” referring to a type of business model where consumers buy and sell goods from one another on a third party site or facilitated by a third party.

As more and more individuals have access to the Internet, some businesses took advantage of the rising consumer need to deal with one another to facilitate transactions, empower consumers, and allow them to trade their products and services at more favorable prices.

There are different types of C2C businesses, such as:

  • E-commerce sites
  • Online auctions
  • Social media platforms 
  • Classified ads platforms 
  • Money transfer platforms 

The C2C market has evolved tremendously since the late 1990s with more and more people having access to the Internet globally.

In a nutshell, what is meant by C2C is the ability for consumers to do “business” directly with one another rather than dealing with a company such as a retailer, manufacturer, distributor, wholesaler, or other.

I hope I was able to provide you with the essentials you need to understand what is C2C (business model), how it works, and why it’s important.

Good luck!

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Now, let’s look at a summary of our findings.

Consumer to Consumer Definition Overview

  • The abbreviation C2C means “consumer-to-consumer” or “customer-to-customer” describing transactions between consumers directly 
  • Unlike a B2C transaction (business-to-consumer), in a C2C transaction, consumers do not deal with any companies or businesses as intermediaries 
  • The most notable C2C online platforms are Amazon, Facebook Marketplace, eBay, Etsy, Kijiji, Craigslist, and others
  • Consumers benefit as they are able to sell their own products and services, trade a better prices, and find things that would otherwise be more difficult to find
  • The sharing economy and the C2C business model is expected to grow over time due to the consumers’ increasing demand for autonomy and empowerment 
1099 employee 
Amazon effect 
Auction system 
Bid price 
Business to Business
Business to Consumer
Business to Government
C2C acronyms
C2C vs W2
Cam to Cam 
Capacity to Change
Care to Chat 
Carrier to Carrier
Cash to Cash cycle 
Concept to Consumer
Corp to Corp
Disintermediation 
E-commerce business 
Sharing economy 
W2 contract
What is affiliate marketing
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Cash flow diagram 
Contract cost
Contract markup
Contract price
Contract work
Cost-Plus-Award-Fee Contract (CPAF)
Cost-Plus-Fixed-Fee (CPFF)
Cost-Plus-Incentive-Fee Contract (CPIF)
Cost-Reimbursement Contract (CR)
Firm-Fixed-Price Contract (FFP)
Fixed-Price Contract (FP)
Fixed-Price Contract with Escalation (FFE)
Fixed-Price Incentive (FPI)
Gross profit 
Internal rate of return (IRR)
Labor contract 
Lump-Sum Contract (LS)
Milestone Pricing Contract
Profit margin 
Time and Material contract (T&M)
Unit Pricing Contracts (UP)
What is a contract 
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Editorial Staff
Hello Nation! I'm a lawyer by trade and an entrepreneur by spirit. I specialize in law, business, marketing, and technology (and love it!). I'm an expert SEO and content marketer where I deeply enjoy writing content in highly competitive fields. On this blog, I share my experiences, knowledge, and provide you with golden nuggets of useful information. Enjoy!

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