WHAT IS C2C? Differences, Benefits, and How to Start It


C2C stands for “consumer to consumer” or “customer to customer.” It is a business idea that encourages private people to do business with each other, usually online. C2C enterprises serve as middlemen, fostering participation and assisting consumers in reaching larger audiences. Whether a C2C platform is about goods or services, this area of e-commerce encourages interactions between people. In this post, we explain C2C contracts in employment, go through several types of C2C businesses, examine examples and benefits, and walk you through a step-by-step guide on how to start your own C2C business. We will also see the difference between C2C and B2B.

What is C2C?

C2C stands for “customer-to-customer,” which is a business model in which customers trade with each other, usually online. Auctions and classified advertisements are two examples of C2C market implementations. C2C marketing has become more popular since the Internet and sites like eBay, Etsy, and Craigslist came along.

How Customer-to-Customer (C2C) Works

Customer-to-customer refers to a market setting in which one client purchases things from another client via a third-party business or platform. Customer-to-customer businesses are a type of business model that grew out of the sharing economy and e-commerce technologies.

Customers benefit from the competition between products, and they often find things that are hard to find elsewhere. Also, because there are no retailers or wholesalers, sellers can make bigger profits than they would be able to with normal pricing. Customer-to-customer sites are convenient since they reduce the need to visit a physical store. Buyers come to sellers when they advertise their stuff online.

Types of C2C Businesses

Consumer-to-consumer business comes in many shapes and sizes, giving customers a choice of platforms to buy and sell things and trade money. Consider the following types of typical C2C businesses:

#1. Online auctions

Online auctions are a sort of C2C business in which consumers may search for and bid on products for sale by other consumers. This is usually done on a third-party website where both customers have profiles or memberships. Third-party sites help bidders figure out how much money they need to bid to win the auction.

#2. E-commerce sites

E-commerce sites have a few different types, like sites that sell handmade goods or platforms that let people start their own online businesses. Those thinking about starting their own customer-to-customer business can use these e-commerce platforms to reach a larger audience or a narrow audience of consumers looking for certain items.

#3. Money transfer platforms

Another common type of C2C business is money-transfer platforms. This is because many businesses that sell directly to consumers don’t have their own sales and accounting departments. Money-transfer systems enable C2Cs to accept money from customers in a secure environment. These can also help business owners keep track of their earnings and figure out which products sell the most.

#4. Social media sites

More and more social media sites are adding online stores so that users can sell used items or promote their own products. Also, social media sites provide unique marketing strategies such as hashtags and sponsored ads, which can help attract users to your page.

Examples of C2C

Because of the internet, larger and more powerful companies are encouraging C2C transactions. Here are a few such examples:

  • eBay. A well-known example of a customer-to-customer middleman is eBay. It offers fixed-price and auction items to people looking for fantastic prices and hard-to-find things.
  • Amazon. Amazon operates as both a B2C and a C2C platform. Its Amazon Marketplace is primarily populated by third-party vendors selling new and used things. Selling on Amazon necessitates the creation of a seller account, the listing of products, and direct shipping to the consumer or Amazon.
  • Fiverr. Users on Fiverr can publish a personal for-hire service for as little as $5. These services include everything from financial advising to graphic design.

What Is C2C Contract

C2C is a contract in which one corporation hires another corporation and pays its employees’ salaries. Employees in customer-to-customer positions must have a business S-corp or an LLC.

How Do I Start a C2C Business?

If you’ve determined that a C2C business model is right for your company, you might be wondering what to do next. Here is a step-by-step guide on how to start your C2C business:

#1. Consider your business’s purpose.

Consider your goals for your customer-to-customer business before making any other decisions. If you make T-shirts, jewelry, phone covers, artwork, or other things, your goal is to sell them to customers who are interested in them. In contrast, if you collect old books, furniture, or vinyl recordings and want to sell them, the aim of your business is to connect buyers with rare items that you have discovered and wish to sell for a profit.

#2. Pick a platform

You can better identify which C2C platform will work best for your business once you’ve determined the purpose of your customer-to-customer business. If you have a lot of vintage novelty items, you should think about setting up an online presence on an auction platform. If, on the other hand, you manufacture your own products, you might think about selling them on a handmade goods platform.

#3. Expand your consumer base

Once your online store or profile is up and running, you can start building your customer base. Start by asking family and friends to help you promote your business on the C2C network. They can tell other people about your products, give them good reviews, or even buy things for you.

#4. Make use of organic advertising strategies.

Social media is an excellent tool for driving organic traffic to your online store. You can grow your business on your personal profile, or you can set up a separate business account to help enhance your business’s internet visibility.

In addition to this strategy, you can also create blog or video content about your business, its goal, and how you make or procure the products you sell on your online store. Backlinks and keywords are valuable organic advertising tactics that not only help generate organic traffic but also increase your search engine visibility.

What is the Difference Between C2C and B2B?

The following are the primary differences between B2B and C2C:

#1. Different business models

B2B refers to the commerce and exchange of goods, services, and information between businesses. The customer-to-customer business model is based on the idea that people can trade and exchange items with each other, mostly online.

B2B involves legal entities in trade and requires legal paperwork before any kind of business can be done. In customer-to-customer transactions, the people involved do not work for a business, so no legal paperwork is needed.

#3. How do they determine to price

B2B involves various types of trades, each with its own set of prices. “Cost plus” pricing is usually used by manufacturers and wholesalers. This pricing method includes a profit margin in the price. To remain competitive, retailers who buy items from suppliers typically employ competitor-based pricing. Even though there are no official ways to set prices in C2C, vendors use price differences and negotiations to set prices.

#4. Operational scale

In B2B transactions, professional businesses that do business on a much larger scale are involved, and enterprises order a lot of products. Customer-to-customer sales operate on a much smaller scale since people typically sell what they’ve already used or a new product that isn’t available in huge quantities.

#5. The primary reason for a failed transaction

Errors in B2B communication or late raw material delivery may result in contract cancellation in the future. Consumer-to-consumer transactions that happen online show poor quality and high prices, which makes consumers lose faith in e-commerce.

#6. Structure of the Organization

B2B companies are frequently large in size, with a large number of people organized into teams that oversee their respective responsibilities. Customer-to-customer is likely to have a single person working to market his goods or services.

B2B and C2C are key business models that contribute significantly to the world’s major transactions and aid in the smooth functioning of operations. These concepts form the foundation of any transaction and explain how organizations operate in both physical and virtual environments. Both business models have an economic impact since they increase employment, GDP, and market growth. With the improvements that have been made, it is important to understand and use this business language in the future.

What Are the Benefits of C2c?

The business model provides various benefits to consumer-to-consumer enterprises and participants.

  • C2C is inexpensive. Because customer-to-customer platforms do not have to deliver items, costs are kept to a minimum. This keeps supplier margins higher and buyer prices lower.
  • C2C is advantageous to sellers. Sellers appreciate the convenience that Consumer-to-consumer marketplaces offer. If someone wants to sell a collection of ancient books, they don’t have to go through the bother of finding possible purchasers. Instead, they can join a customer-to-customer marketplace and gain access to a large number of potential purchasers.
  • C2C is convenient for buyers. Buyers appreciate the customer-to-customer approach as well. They don’t have to undertake offline research or travel around to different stores looking for the item they desire. They may quickly access a Consumer-to-consumer site and search for even the most difficult-to-find things.

What are the Drawbacks of the C2C?

C2C businesses also present players with obstacles.

  • Credit card payments can be difficult. Credit card purchases on some C2C sites might be tricky. Some sites may not accept or process credit cards. However, services like PayPal and Venmo are easing these difficulties.
  • Inadequate quality control. Quality control may be lacking in C2C transactions. Because the vendors are consumers, there is frequently minimal redress for defective or misleading products. Furthermore, because the buyers are also consumers, payment guarantees might be difficult to implement.
  • C2C platforms are susceptible to fraud. C2C sites can be riddled with fraud as opportunists seek to exploit others. Buyers should be aware of sellers who cannot answer specific queries concerning the items they sell. They should also avoid any salesperson who puts them under pressure to buy immediately. To guarantee buyers and sellers feel comfortable using their customer-to-customer marketplace, C2C platforms must implement strict standards. Many sites have extensive selling policies that, if violated, result in user bans.

What is C2C Employment?

When a company hires a contractor to conduct work for them instead of hiring someone full-time, this is known as C2C employment. It can be a terrific method for businesses to get work done without having to hire and pay someone full-time, and it can also be a great way for contractors to find employment.

There are certain drawbacks to the Corp to Corp arrangement, such as the absence of benefits that contractors typically do not receive, but it is an excellent way for both firms and contractors to acquire what they require.

What does C2C mean in salary?

Corp-2-Corp is a contract in which one corporation hires another and pays its employees’ salaries. To work as a C2C employee, you must have an S-corp or an LLC.

What is C2C vs W2?

A W2 employee can work for many employers. A C2C consultant is not permitted to work for more than one company. W2 employees are not eligible to get reimbursement for some of their expenditures.

What are C2C requirements?

C2C Needs is a website where recruiters can post their requirements and hot lists. This is strictly for recruiters. C2Crequirements.com is an online recruitment portal for recruiters, where recruiters share requirements and candidate profile information.

How many types of C2C are there?

There are just two types. Auctions and classified advertising are two examples of C2C market implementations. C2C marketing has become more popular since the Internet and companies like eBay, Etsy, and Craigslist came along.

Who can work under C2C?

An employee must hold an S-corp or an LLC to work in a C2C capacity. In this role, you may have to fill out some paperwork, but you will get all the same benefits as a full-time worker. You can even hire someone to work for you here.

How does C2C tax work?

When one corporation pays taxes to the government and another corporation, C2C taxation can help prevent double taxation.


The C2C eCommerce industry of 2023 is a thriving and quickly rising industry that has made purchasing and selling for customers as simple as ABC. Also, keep in mind that starting a C2C e-commerce store can be challenging. Make sure to do a lot of research, give your C2C business enough time, and use the right tools and planning. We have now covered every aspect of C2C e-commerce.


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