Letgo is an online marketplace that facilitates transactions between consumers. It's available as a mobile app or a website.
Letgo is an online marketplace that facilitates transactions between consumers. It’s available as a mobile app or a website.

Cody H. is selling a 2000 Ford Mustang with 140,000 miles on Letgo, a mobile peer-to-peer classified app. The asking price is $2,200, but he’s willing to negotiate for a fast sale. Cody and his potential customers are participating in a popular ecommerce business model: consumer-to-consumer.

C2C ecommerce can and does look an awful lot like regular business-to-consumer ecommerce or even B2C sales generally. Here is an example.

Giovanni, my son, found Cody’s listing shortly after 10 a.m. on a Wednesday. Gio is off of work on Wednesdays and, like many of his friends, he is more comfortable shopping for a used car on an app like Letgo than he is scouring a printed classified or visiting a used car dealer. Five months ago, he bought a 1999 Sebring on Letgo for $600.

He plans to buy something a little nicer and then list the Sebring on Letgo and try to get as much of his investment back as possible.

Giovanni could have had a business-to-consumer transaction, not a C2C. Instead of using Letgo, Gio could have gone to a used car dealer. He would have test driven a car, and, perhaps, even traded his Sebring in for something a little nicer.

C2C is unique in that each party is a “consumer” and, in another transaction, their roles might be reversed.

In this article, I will briefly explain six ecommerce business models, including B2C and C2C.

Business-to-consumer

When you think of ecommerce, you probably think of the B2C business model. It is simply retail sales made from a business entity to an individual. Much of Amazon.com uses this model. Nearly every entrepreneur using BigCommerce, Shopify, or a similar hosted ecommerce platform is also likely to be focused on B2C ecommerce.

Within the B2C ecommerce model, there are subcategories, if…