C2C (Consumer-to-consumer) electronic commerce is the type of business that is carried out online or through the Internet, where both the buyer and the seller are natural persons. Contrary to the traditional business model in which a customer needs to go to the physical store to buy a product or service. C2C e-commerce has enabled people to open a web store which incurs relatively less cost due to the absence of the need to purchase real estate to run the business. Furthermore, since the online store has no physical presence for the shopper to visit directly, it is able to offer a virtually innumerable number of products. Additional product information that cannot be seen in traditional businesses, for example product review and comparison, can also be beneficial to consumers when shopping online. There are two typical C2C eCommerce implementations: classifieds and auctions.

Internet auctions

Online auctions work in such a way that if a buyer places a bid on an item they intend to purchase, other buyers (bidders) looking at the same item would also have to bid, at a higher price. The online auction usually has a time limit, which is usually between a few days and a few weeks; at the end of the time limit, the item will be sold to the highest bidder. It is not uncommon for a high-demand item to result in competitive bids: as the number of simultaneous bidders increases, the final bid will be very close to or sometimes higher than its actual market value. A large online auction service provider, such as eBay, charges a final value fee to the seller when an item has been successfully sold. A listing fee may or may not be imposed for an item to be listed or auctioned, depending on the service provider. An online auction site connects all the buyers and sellers from around the world who are geographically far apart and international trade drives the business of a domestic seller. The item is delivered to the buyer via shipping and takes a few days or more depending on the buyer’s location. A premium shipping service generally shortens delivery time at the expense of higher cost. For example, the overnight shipping service guarantees that the item will arrive the next day. Despite the buyer-seller placement in this business model, the online auction offers a wide range of products, from home goods to high-end electronics.

internet classifieds

If Internet auctions allow global users to do business, then Internet classifieds are another C2C e-commerce model where buyers and sellers can meet locally. Evolved from newspaper classified ads, a seller posts classified ads on a classifieds site, interested buyers in the neighborhood find the ad, and contact the seller via email or phone. Both parties will discuss the price of the item (so it’s flexible), and meet at a specific location: park, mall, etc. Once the buyer is satisfied with the item brought by the seller, cash will be released to the seller and the deal will be completed. As Internet classifieds mature, it’s not just about items for sale, but more like a community site where people can post about upcoming local events. The “Lost and Found” section on an Internet classifieds site is another great place for the local who loses something because someone else who found the item might also post a story about it in that section. Today, online classified sites are gaining popularity among employers and job seekers because they act as an alternative to employment agencies and thus satisfy both parties. Small businesses and individuals also use online classifieds to advertise the services they offer. Similarly, real estate classifieds are another great feature that the service provider offers. Owners who have apartments for rent are able to attract more potential customers without the involvement of an agent or a commission, and therefore earn a higher rental return.