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.
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…