ebay business model c2c

C2C e-commerce: Could a new business model sell more old goods?

Countless headlines have marked the meteoric rise of e-commerce during the COVID-19 pandemic. As the disease took hold, digital adoption in Europe  jumped nearly 14 percent—a rise that would have taken two to three years in most industries at prepandemic growth rates. And it is still growing fast. We estimate e-commerce will rise between 2020 and 2024 by at least 8 to 9 percent a year in France and Germany, 6 to 7 percent a year in the United Kingdom, 10 to 12 percent a year in Italy and Spain, and more than 20 percent a year in Asia. 1 Figures are for B2C and C2C, not B2B, e-commerce.

B2C marketplaces have fared particularly well. Many retailers with a foot in the physical world struggled when sales suddenly pivoted to their online channels during crisis-related lockdowns, often finding themselves short on stock, slow to deliver, and overwhelmed by the volume of calls and online queries. In contrast, Amazon and other seasoned B2C marketplaces shone thanks to their more advanced operations. In 2020, Amazon sales soared in the United Kingdom by 51 percent, to a record $26.5 billion, and in Germany by 32 percent, to a record $29.5 billion.

Yet there has been another e-commerce success story much less commonly told: the growth of C2C marketplaces. Transaction volumes of what are largely secondhand goods have climbed both on horizonal sites (such as Germany’s eBay Kleinanzeigen and Facebook Marketplace, which offer a broad range of categories) and on vertical sites (such as Lithuania’s Vinted, a pan-European C2C site for used fashion items). Exhibit 1 shows how listings have gathered pace on a range of popular European horizontal sites that disclose transaction volumes. The United Kingdom’s Gumtree and France’s leboncoin have seen growth of more than 50 percent since the start of 2020, for example.

The surge has been driven by the millions of people who spent time during lockdowns clearing out wardrobes, lofts, and garden sheds and selling their unwanted goods online.

The surge has been driven by the millions of people who spent time during lockdowns clearing out wardrobes, lofts, and garden sheds and selling their unwanted goods online. But this is no short-term trend. Trade will continue to expand on the back of consumers’ growing concern about sustainability. In addition, our research and work with C2C platforms in Europe suggest there may be room to encourage further growth and to monetize it by switching away from the traditional C2C business model, which charges sellers for listing items, to charging buyers instead.

Where growth lies

Twice over the past year and a half, we surveyed a total of more than 3,000 consumers who use C2C marketplaces in Germany, the Netherlands, and the United Kingdom. One of the things we found was the most popular C2C categories traded during the COVID-19 pandemic (Exhibit 2).

In all three countries, respondents report fashion and family items (such as toys) as the biggest secondhand category. Across Europe, we estimate that the category is already worth as much as €6 billion, having doubled in 2020. But the growth is not entirely related to the COVID-19 pandemic. As Exhibit 3 shows, we forecast continued annual growth of around 35 percent in the next four years. Consumers of all ages will trade more, but the youngest consumers (those from Generation Z, largely 15- to 24-year-olds) will lead the way. They account for some 43 percent of market volume today—a figure that could rise to 47 percent by 2025.

An average of 30 percent of respondents say they were buying more secondhand fashion items online than before the pandemic. The main reason they cite was to save money. However, an average of 38 percent say it was because they were keen to create less waste (Exhibit 4).

A new model

A shift to a model that charges the buyer could further fuel growth in C2C transactions. C2C sites have traditionally been free to buyers—a model established in California by eBay’s founder, Pierre Omidyar, when he set up a private online auction in 1995. (He was reportedly astonished when the first item sold, a broken laser pointer, fetched $14.83. 2 Sebastian Rupley, “Meet the buyer of the broken laser pointer,” eBay, September 11, 2015, ebayinc.com. ) Traffic volumes on the site quickly became so brisk that Omidyar’s internet provider hiked up its fees, at which stage the entrepreneur began charging sellers a listing fee. 3 “The history of eBay,” History Computer, July 15, 2021, history-computer.com.

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Many more C2C platforms have since emerged, using various business models. Most of them, including eBay Kleinanzeigen, Facebook Marketplace, and Gumtree, largely target transactions among people in the same local community and are entirely free to sellers. They rely on the revenue generated from third-party advertisers attracted to high-traffic sites. Some, such as eBay, charge the seller a listing fee on the value of the goods sold. And some, such as Vestiaire Collective (a site for higher-value used clothes), go deeper into the value chain and even offer authenticity checks for some branded items. But common to all has been that the platform has been largely free to buyers—until recently.

As the C2C sector has matured, a few innovators have begun to monetize their platforms by charging fees to buyers.

As the sector has matured, a few innovators have begun to monetize their platforms by charging fees to buyers. The fashion site Vinted and Spain’s horizontal C2C site wallapop are examples. By making the sites free to sellers, the companies flip the traditional e-commerce model, which focuses on attracting the most possible buyers to a site. The assumption is that by removing supply hurdles, there will be more sellers and hence more inventory, which will in turn attract more buyers and still more sellers. (Note that an average of 26 percent of respondents in our survey say they were buying more secondhand goods because a wider selection of products had become available.)

Monetization then stems from charging a commission on the back of the transaction or, more commonly among the newcomers, arbitrage opportunities associated with the offer of additional services. Several players in Asia, such as Mercari in Japan, are making significant pivots to transaction-based monetization using escrows. Often, such commissions can be as high as 10 percent of the transaction value.

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In addition, our survey results suggest that buyers value additional services (Exhibit 5). Respondents rank buyer protection, in which funds are refunded in the event of nonshipment or poor-quality goods, as the number-one factor that would encourage them to buy more secondhand goods. Integrated payments and shipping ranked fourth and fifth. The respondents also value the authenticity certification of niche products (for example, Buddhist amulets that are assessed by providers such as Kaidee in Thailand). Players such as Carousell monetize those value-added services and charge a protection fee to secure the buyer. C2C marketplaces are also evolving their seller propositions by offering marketing, customer-insight, and pricing tools; payment platforms; and sales building and training.

The opportunity is sizable. Assuming a commission of 2 to 3 percent, offering buyer protection through an escrow service (in which payment is made to the platform provider, which transfers the funds to the seller once the goods have been received) would represent revenue of between €80 million and €120 million in today’s online market for secondhand clothes and family goods. More revenue could be raised by offering shipping services, also an opportunity for sites currently focused on local markets to extend their platforms’ reach. Some sites offer shipping services at or below retail rates but still make a margin because shipping providers are willing to offer the companies a discount.

New C2C sites that have implemented such a model have gained traction. For example, in February 2021, Vinted was among the top five shopping apps downloaded in France, Germany, Italy, the Netherlands, Poland, and the United Kingdom. Poland’s OLX now has close to 15 million active users—one in two Poles over the age of 14 use the site. And the biggest German C2C site, eBay Kleinanzeigen, has more than 28 million users, representing roughly 40 percent of Germans who are more than 14 years old.

The buyer-fee model has attracted considerable investor interest too. The valuation of Vinted, for example, increased from more than $1 billion after a successful round of funding in November 2019 to more than $4.2 billion after its latest funding round, in May 2021. 4 Ingrid Lunden, “Vinted raises $303M for its 2nd-hand clothes marketplace, used by 45M and now valued at $4.5B,” TechCrunch, May 12, 2021, techcrunch.com; Ingrid Lunden, “Vinted, the second-hand clothes marketplace, raises $141M at a $1B+ valuation,” TechCrunch, November 27, 2019, techcrunch.com. As another example, wallapop was reportedly valued at €690 million in February 2021, having raised €157 million in new funding. 5 “Online marketplace wallapop collects €157M series G,” PitchBook Data, February 26, 2021, pitchbook.com. And Sweden’s Yaytrade, a platform for trading secondhand fashion and accessories, has recently listed on the Nordic region’s Nasdaq First North Growth Market. 6 Daniel Jacobs, “Yaytrades erbjudande kraftigt övertecknat” [Yaytrade’s offer strongly oversubscribed], Dagens PS, February 24, 2021, dagensps.se.

Whether the new business model in the C2C trade will prevail is yet to be seen. But three things seem clear:

• C2C platforms will not be competing only among themselves. All manner of companies are responding to the growing appetite among younger people to recycle. Online fashion companies such as ABOUT YOU, ASOS, and Zalando have started to explore the recycling space, as have those with retail stores. The outdoor-gear manufacturer Patagonia, for example, has recently launched a site for secondhand Patagonia garments. Customers receive a credit note for their unwanted Patagonia goods, which the company resells.
• In a competitive secondhand market, C2C companies that choose not to charge fees to sellers for what are relatively low-value goods may be best positioned to gain an edge in the industry.
• Buyers of secondhand goods often value the same service offerings that they are accustomed to when buying new items online—security, payment and shipping options, and ease of use, for example.

Our work suggests that C2C platforms that offer such services, all smoothly integrated, could be best positioned to gain an edge in the industry. To date, very few C2C platforms offer such a complete package. When more do, secondhand will no longer be second best.

Vanessa Goddevrind is an associate partner in McKinsey’s London office, Thomas Schumacher is a partner in the Düsseldorf office, Ramdoss Seetharaman is a partner in the Mumbai office, and Dennis Spillecke is a senior partner in the Cologne office.

The authors wish to thank Robin Katzenstein for his contributions to this article.

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What is C2C?

Table of contents.

• C2C is a business model where customers purchase goods from other customers via a third-party platform or business. 
• Businesses that facilitate C2C transactions help sellers reach vast numbers of potential buyers.
• Companies running C2C marketplaces must maintain safe platforms and quality controls, or desirable buyers and sellers won’t use them.
• This article is for entrepreneurs who want to understand the C2C business model.  

C2C stands for “consumer to consumer” or “customer to customer”; it’s a business model that fosters commerce between private individuals, usually in an online environment. C2C companies act as intermediaries to foster engagement and help consumers reach bigger audiences. 

Whether a C2C platform focuses on goods or services, this e-commerce category facilitates transactions between people. We’ll look at C2C commerce and explain how this business model operates. 

Did you know? Other typical business models include business-to-business (B2B) , consumer-to-business (C2B) , and business-to-consumer (B2C) .

What is C2C commerce?

In the C2C model, a consumer – not a business – sells goods or services to another consumer. 

Today, the C2C business model is typically associated with e-commerce and online selling platforms like Craigslist or Etsy. Some C2C platforms, including OfferUp, prioritize mobile commerce via apps. However, C2C can refer to any business that creates a market between consumers. A newspaper’s classified ads section or an in-person auction house are also examples of C2C businesses. 

C2C companies facilitate consumer relationships, helping buyers and sellers locate and engage with each other. They’re especially useful for niche markets. For example, if you’re selling a used car, you may not know anyone interested in its specific make and model. However, a C2C marketplace can help you connect with your target customer and make the sale. 

The C2C model allows customers to access hard-to-locate products and find the best price among competing sellers.  

Did you know? Some sellers use C2C platforms as an arbitrage opportunity, buying goods, such as high-quality used clothes, for their online resale business . 

How is C2C different from B2C?

While C2C platforms help consumers sell to other consumers, business-to-consumer companies sell directly to consumers. Today, B2C typically refers to online retailers, but traditional retailers like mall stores also follow a business-to-consumer model.  

Here are some characteristics of the B2B business model: 

• B2B organizations typically offer various products or services they develop or purchase from a manufacturer or originator.
• B2B companies make money by selling directly to their customers.
• To succeed, B2B companies must understand what customers want and how to motivate them to purchase. 
• B2B companies usually have control over their products’ quality. 
• B2B companies must offer excellent customer service to stand out and build customer loyalty and repeat business. 

In contrast, a C2C business’s primary service is helping sellers reach larger audiences. They make money from fees or commissions they charge sellers in return for listing items for sale. 

Additionally, since C2C websites are intermediaries that match buyers to sellers, they have little control over product quality. 

Money-transfer platform PayPal is often used to facilitate transactions for C2C sales, usually with a small transfer fee. But this market is also evolving, thanks to the rise of C2C payment platforms like Venmo , Google Pay, and Zelle .

What are the advantages of the C2C model?

C2C companies and participants enjoy several benefits from the business model. 

• C2C has minimal costs . Since C2C platforms don’t have to provide products, minimal costs are involved. This keeps margins higher for sellers and prices lower for buyers. 
• C2C is convenient for sellers . Sellers enjoy the convenience that C2C marketplaces provide. For example, if someone wants to sell a collection of old books, they don’t have to deal with the hassle of locating potential buyers. Instead, they can join a C2C marketplace and access many potential buyers. 
• C2C is convenient for buyers . Buyers also find the C2C model convenient. They don’t have to research offline and drive around to visit stores searching for an item they want. They can access a C2C site and easily search for even hard-to-find items.

What are the disadvantages of the C2C model?

C2C businesses also create challenges for participants. 

• Credit card payments can be challenging . Credit card transactions can be difficult on some C2C platforms. Some platforms may not support or be able to process credit cards. However, options like PayPal and Venmo are mitigating these challenges.  
• Lack of quality control . C2C transactions may lack quality control. Since the sellers are consumers, there is often little recourse for poorly made or misrepresented products. Additionally, because the buyers are also consumers, payment guarantees can be hard to enforce.
• C2C platforms can be vulnerable to scams . C2C platforms can be rife with scams as opportunists find ways to take advantage of others. Buyers must be wary of sellers who can’t answer detailed questions about items for sale. They should also avoid any seller that pressures them to buy immediately. C2C platforms must enforce rigorous policies to ensure buyers and sellers feel safe using their C2C marketplace. Many platforms implement comprehensive selling policies that, if violated, result in the users being banned. 

What are examples of C2C companies?

Thanks to the internet, bigger and more powerful companies are fostering C2C interactions. Here are some examples: 

• eBay . eBay is a prominent example of a C2C intermediary. It includes fixed-price and auction items and appeals to customers seeking good deals and hard-to-find products.
• Amazon . Amazon is both a B2C and C2C platform. Its Amazon Marketplace focuses on third-party sellers offering new and used items. Selling on Amazon requires creating a seller account, listing products, and shipping directly to the consumer or Amazon.
• Craigslist . Craigslist is another well-known C2C marketplace where people can buy and sell goods and trade services. Craigslist’s localized sites for cities worldwide create a community feel. Craigslist focuses on facilitating relationships. For example, property owners can reach potential renters, and experts can reach people who need their services.
• Etsy . Etsy began as an online community for artists, crafters, and vintage fans. It’s now an established marketplace for unique, handmade, original items.
• Facebook Marketplace . Facebook Marketplace connects buyers and sellers in specific locations. All transactions are free, unlike eBay, which takes a transaction fee on sales. 
• Airbnb . Airbnb allows users to post their residence for short-term lodging to other users for a nightly rate.
• Fiverr . Fiverr enables users to post a personal for-hire service for as low as $5. These services range from giving financial advice to graphic design.

While similar, C2C differs from the P2P (peer-to-peer) model. P2P transactions are directly between consumers, while C2C typically has an intermediary platform.

C2C commerce has a bright future

The internet has enabled companies to create C2C marketplaces on an unprecedented scale. In Europe, the pandemic accelerated the C2C trend , consultancy McKinsey found, since so many people took the time to get rid of unwanted possessions. Additionally, since customers prefer sustainable products , sustainability concerns could drive further C2C growth. 

One thing to note: creating a C2C platform is often unrealistic for SMBs since the business model often requires having or building a huge audience.

Alex Halperin contributed to the reporting and writing in this article.

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How Ebay Works: Business & Revenue Model

B2C and C2C multinational e-commerce online marketplace Ebay based in California started their operations in 1995 and went public in 1998. With over $9.6 billion annual revenue and 170 million active users as of quarter 4th of 2017, Ebay is well accepted e-commerce online marketplace .

Ebay sell their products either via a silent auction where users can submit the maximum price they are willing to pay for the product or via buy it now where user buy products at the listed price. As of 4 th quarter of 2017, 39% of buyers were female and likewise 44% of sellers are female. Over 65% of Ebay’s revenue generates from Ebay online marketplace transactions and only 10% revenue comes from StubHub which is online ticket marketplace acquired by Ebay in 2007.

Ebay is an online marketplace for buying and selling of new and used products. Online marketplace deals in both B2C and C2C marketplace. Ebay is available in 180 countries for buying and selling of wide variety of goods. Ebay revenue comes from seller for listing of products and commission on sale of product. Buyers need to pay the product price only to buy products on online marketplace. Sellers can list first 50 items on the Ebay online marketplace free of cost every month. After that company charges the listing fee depending upon the product category. Company also charges commission fee on sale of products. Over 90% gross merchandise volume generates from Ebay’s marketplace.

Ebay Founders, Funding received and Timeline:

Founders : Pierre Omidyar

Founded Date : September 1, 1995

Headquarter : San Jose, California, United States

Number of Funding Rounds : 1

Total Funding Amount : $6.7M

Number of Acquisitions : 62

IPO Date : September 24, 1998

IPO Share Price : $18.00

Timeline of Ebay:

Ebay Revenue generation Model:

First online marketplace Ebay is known for huge variety of products. Websites similar to Ebay are doing well but Ebay business model is way different to its competitors. Ebay offers buyer and seller an online marketplace platform to buy and sell products. Ebay don’t store the inventory of products rather directs the order directly to the seller.

With over 1.93 million (as on 2017) active sellers on Ebay, Ebay allows sellers to list first 50 products on the online marketplace platform free of cost. After that Ebay charges listing fee on each item. Additionally, Ebay charges upto 10% commission on sale value pre-tax including shipping charges. Online marketplace Ebay offer two ways to sellers to sell and buyers to buy wide variety of products. Buy it Now and bidding option are made available to users. In bidding option, buyer has an option to bid the price they are willing to pay to buy the product. Buyer with highest bidding price gets the product and in Buy it Now option seller update the price of product.

Other revenue generation model on websites like Ebay is Advertisement. Online marketplace websites like Ebay sells advertising on their websites that go on external websites. Ebay also own some classified ads that generate some revenue for the online marketplace platform. Other revenue souce is giving license of their in-house technologies to other companies. Online marketplace like Ebay generate revenue from various sources but the major chunk of revenue comes from online marketplace.

Features of Online Marketplace Ebay:

Return policy of product with 100% money back gaurantee.

Ebay accepts all the online payment options with EMI payment method with allow buyer to pay in monthly installments.

Ebay authentication policy for all the products and product verification by experts.

Bidding option to buy products. At least 30% price difference in lowest bid price and buy it now price.

Product wishlist and product feedback & review via catalog on the website.

Report link to buyers for fake and unauthenticate product.

Value Proposition of Online Marketplace Ebay:

• Large product catalogue
• Quality assured products
• Free shipping
• Fast Delivery
• Review and Feedback of products
• Order tracking
• Product return policy with 100% money back guarantee
• Global online audience
• Good customer satisfaction
• Bidding and buy it now feature for selling of product
• Effecient marketing and distribution channel
• opportunity to enhance sale

Why Ebay is successful

Ebay has a large list of competitors. Even with first player to enter in online marketplace domain around the world, Ebay is facing a huge competition. Ebay is the only place to offer auction of products that attract large set of audience around the world. No other online marketplace is able to offer auction feature to buyer and seller both. Rare collectable items and huge toy collection along with auction listing appeal to buyers.

Ebay online marketplace is successful with its unique interface. Ebay offers search algorithm unlike of search engine which search information, but Ebay search for physical products around the world. Online marketplace Ebay retains their market share of audience and safeguard Ebay from large set of online marketplace competitors. Number of products &services offered, price and quality are most important aspects for Ebay that makes Ebay different and successful in online marketplace world.

Ebay is an online marketplace for buying and selling of products around the world. Ebay is quite different from other players. Ebay core offering is better services to buyers and sellers. Other online marketplace competitors focus more on products. Auction feature of Ebay along with buy product at fixed price is a unique offering to engage buyer and sellers.

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eBay Business & Revenue Model

Ever heard of the phrase, “there’s an app for everything?” well it’s true. According to a report…

October 12, 2021

Table of Content

eBay – A Platform to Buy and Sell Anything

Key Stats and Facts About eBay

The success timeline of ebay.

eBay Story: What’s the Reason Behind Its Success?

eBay’s Customer Segments

Value Propositions Offered by eBay

The eBay Business Model Explained

The eBay Revenue Model Explained

Interested in Creating Online Marketplace Like eBay?

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The E-commerce marketplace industry has seen tremendous growth during the COVID-19 pandemic. After all, the pandemic has completely transformed the way people buy – resulting in an exponential rise in usage of online shopping platforms like eBay.

As of the 2nd quarter of 2021, eBay’s revenue amounted to over  2.67 billion U.S. dollars – a 14% increase year-over-year.

So, if you’re thinking of building a platform like eBay, you’re on a right track to commence a lucrative business. That being said, it’s a must for you to have a solid understanding of eBay’s business & revenue model to kick off your venture the right way.

In this post, we’ve covered how eBay works and makes money in detail. But before getting to that, let’s first have a look at what eBay is all about and some key facts related to the platform.

eBay – A Platform to Buy and Sell Anything

eBay is a multi-vendor online marketplace that connects millions of buyers and sellers from all over the globe to buy and sell new or used products. It facilitates both B2C (business to consumer) and C2C (consumer to consumer) transactions via eBay’s website and app.

At present, eBay is available in 180 countries as an online shopping platform with a wide range of products along with other unique services such as online auction, stubhub.com (event ticket trading) and online classified ads.

That’s why it’s no wonder to see that eBay was the second most popular e-commerce and online shopping website based on visit share – as of June 2021.

• Year of Foundation: 1995
• Founders: Pierre Omidyar
• Headquarters: San Jose, California, United States
• Industry: e-Commerce
• Number of Funding Rounds: 2 (As Per  eBay’s Crunchbase Profile )
• Total Funding Amount: $6.7M
• Number of Acquisitions: 65

Here’s a quick look at eBay’s success timeline.

Also Read (That Might Interest You):  Udemy Business and Revenue Model Explained

eBay Story: What’s the Reason Behind Its Success? 

Though eBay is one of the oldest online marketplaces worldwide, it is still one of the multibillion-dollar e-commerce platforms in the industry. After all, eBay is the only platform to offer a product auction feature to both buyers and sellers in addition to buying products at a fixed price.

Thus, it’s no surprise to see why millions of buyers and sellers from all over the world prefer to trade on eBay.

Thanks to eBay’s product auction listings feature, those in possession of rare and collectable items found a platform to welcome the best offers. At the same time, collectors found a place where they could bid and purchase rare items.

Well, that’s not at all what makes eBay so successful.

eBay has a large product catalogue with thousands of products including antique Items, collectables, out-of-season, used products and the new arrivals in categories like electronics, appliances and fashion.

All in all? One can buy and sell nearly everything on eBay and no wonder – millions of transactions happened on the platform every single day.

Moreover, eBay leaves no stone unturned when it comes to delivering outstanding customer experience in the form of amazing features like eBay’s money-back guarantee, eBay Top Rated Seller program, SafeHarbor program and Verified Rights Owner Program.

eBay’s efforts through these programs have helped the company win a loyal global customer base that’s has been a significant part of its success.

eBay has a two-sided marketplace business model, with two customer segments of the platform are:

Individuals or businesses who are interested in listing products up for auction or sale.

As of now, eBay has 19M sellers worldwide and over 1 billion active listings posted by individual sellers and large or small businesses alike who create eBay stores to leverage the platform to its full potential.

Individuals who are interested in bidding on products up for auction or purchasing products via a fixed price offered by sellers. As of the 2nd Quarter of 2021, eBay had around  159M active buyers  all over the world.

Value Propositions Offered by eBay

eBay is a leading e-commerce marketplace that provides a unique set of benefits and perks to its key players – buyers and sellers. Have a look!

For Buyers: 

• Large product catalog
• Quality assured products
• Free shipping & fast delivery
• Order tracking system
• An option to review & give feedback related to products
• Money back guarantee

For Sellers

• Global customer base
• Bidding & Buy It Now feature for product selling
• Powerful marketing & distribution channel
• Decent customer satisfaction rating of 77% as of 2020 (As per  Statista )
• eBay’s Top Rated Seller program

The eBay Business Model Explained 

eBay was originally merely an online auction website where sellers listed their products for bidding and the highest bidder getting the products. With time, eBay has evolved into an online e-commerce marketplace platform that enables both C2C and B2C transactions.

The platform doesn’t own any inventory. It simply acts as a mediator between buyers and sellers – enabling people to buy or sell their items.

Here’s a quick overview of how eBay works for its two key players – sellers and buyers.

Firstly, sellers will register on the eBay platform to begin listing their products on the platform. While listing, the platform enables sellers to add product images, product descriptions, price, shipping details and other related things to make products appealing to buyers.

• Auction-Style Listings

Some listings on the platform are auction-based where the item is sold to the highest bidder. In the auction-style listing, sellers also need to mention the minimum bidding price, the duration of the bidding window and available payment options.

• Fixed-Price Listings (Buy It Now)

The other type of product listing that exists on eBay is listing products at a fixed price. In this scenario, sellers will list their items with the “Buy It Now” option. Through available payment options, buyers can purchase the product.

In fact, eBay now provides the option to sellers to open their own stores on the platform, with some additional tools to promote your brand or business.

Like sellers, buyers will register on the eBay platform to start bidding or buying the items through the platform. eBay offers two ways to buyers for buying a wide range of products. The first one is the bidding option and the second is the Buy It Now.

• Buying via Bidding

When it comes to buying via bidding, eBay allows buyers to bid the price they are ready to pay to purchase the product listed in auction-style listings by sellers. A buyer with the highest bidding price acquires the item through available payment gateways options.

In this option, buyers simply pay the fixed price set by the sellers to purchase the product. eBay marketplace platform also offers shopping features such as a shopping cart for buyers to store their favorite items temporarily and can buy them later.

Moreover, eBay enables buyers to keep track of their purchase history and can save their searches as well.

That’s how eBay works for both buyers and sellers – a platform business model that has made eBay a well-known online marketplace worldwide.

Also Read (That Might Interest You):  How to Build an Auction Website and App Like eBay 

The eBay Revenue Model Explained 

eBay marketplace platform makes money in several ways. Let’s have a look at eBay’s revenue model in detail:

1. Listing Fee Model

eBay enables every type of seller to list a minimum of 200 products on its online marketplace platform free of cost. Once the limit is exhausted, eBay charges a listing fee (or insertion fee) of $0.35 for each listing.

2. Commission Based Revenue Model

eBay earns a commission on every sale made by sellers on the platform. This commission is earned in the form of the Final Value Fee and is gauged as a percentage of the total amount of the sale, along with $0.30 per order.

3. Advertising Based Revenue Model

eBay doesn’t earn revenue just via listing fees or commissions upon successful sales. The platform allows sellers to advertise their products on eBay in trade for money. To advertise on eBay, sellers have to pay a fixed amount.

In addition to these revenue models, eBay brings significant revenue from international trade and through its acquisitions of leading companies such as StubHub.

While deciding to build an e-Commerce marketplace platform like eBay, there is another important decision you need to make i.e., the budget for the marketplace development.

If you want to save overall development costs,  hiring a dedicated remote development team  over building an in-house team to build an app like eBay is the way to go.

By outsourcing development to remote developers, you get to save on not just training for your team but even on infrastructure – resulting in significant cost-savings benefits.

We at InfoStride strive to help companies onboard remote developers quickly with flexible engagement models to meet the budget requirements. Our resources are available to hire on a full-time, part-time, hourly, monthly or project basis.

When you decide to hire InfoStride’s remote talent for your marketplace development needs, you can expect:

• Pre-screened and trained experts
• Support for end-to-end development of your eCommerce platform
• State-of-the-art development center to empower your remote team to work on your projects without facing any hassle and securely
• Support from onboarding to offboarding resources
• Deployment of time zone aligned developers for your project

Still, have questions? Schedule a free consultation session with our experts to clear any  doubts you have in mind about hiring remote developers  or building a marketplace app like eBay. 

Conclusion 

One of the key reasons why eBay is one of the leading online marketplaces worldwide is its business model that’s quite different from other players in the e-commerce industry. eBay’s auction feature along with buying products at a fixed price is what sets eBay apart from others.

When it comes to building a marketplace app like eBay, it’s all about getting a solid understanding of eBay’s business and revenue model.

eBay brings considerable revenue to the table from various sources including but not limited to the listing fees model, commission on every sale, advertising, international trade and more.

If you feel we miss something crucial related to eBay, let us know in the comments below. 

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eBay Business Model: A Detailed Exploration

eBay’s remarkable success story, which began in 1995, rests primarily on its innovative business model. By harnessing the power of the internet, eBay has created a global marketplace that accommodates anyone and anything.

eBay’s platform operates based on a business-to-consumer (B2C) and consumer-to-consumer (C2C) sales model, providing an online arena for buyers and sellers to interact and transact. In essence, eBay has redefined the concept of a marketplace by eradicating geographical boundaries, enabling round-the-clock operations, and introducing the potential for rapid, high-volume transactions.

Transaction Fees

Auction-style listings, fixed price listings, trading formats, ebay’s additional services and revenue streams, the network effect explained, increased variety of goods, enhanced potential for sales, self-perpetuating growth cycle, utilizing the network effect, ensuring customer satisfaction: key to ebay’s model, leveraging technology: the key enabler, evolution of ebay’s business model, ebay’s business model: strengths and challenges, how does ebay make money, what are the primary trading formats on ebay, how does ebay ensure customer satisfaction, what is the network effect in the context of ebay, how has ebay’s business model evolved over time, primary revenue sources.

eBay generates its revenue primarily through transaction fees and listing fees. These revenue streams play a crucial role in sustaining the platform’s operations and profitability. Let’s take a closer look at each of these revenue sources:

• Transaction Fees: Transaction fees are charges imposed on sellers for every item sold through the eBay platform. These fees, known as “final value fees,” are calculated as a percentage of the total sale amount. The specific percentage varies depending on the category of the item sold. On average, the final value fee ranges from 10% to 12%;
• Listing Fees: eBay also charges fees for listing items on its platform. The first 50 listings per month are free for sellers, which encourages individuals and businesses to list their products on eBay. However, once the initial quota of free listings is exceeded, a fee per listing applies. The listing fee varies based on the category of the item and whether the seller has an eBay Store subscription.

Trading Formats: Auction-style and Fixed Price Listings

eBay’s business model offers two distinct trading formats: Auction-style listings and Fixed Price listings. These formats cater to different buyer preferences and allow sellers to choose the most suitable option for their products. Let’s explore each trading format in detail:

Auction-style listings were the foundation of eBay when it first launched. In this format, sellers list their items with a starting price and a duration for the auction. Potential buyers place bids on the item, and as the auction progresses, participants can increase their bids until the auction ends. The highest bidder at the end of the auction duration wins the item.

Auction-style listings are particularly well-suited for unique or rare items, as they create a competitive environment that can drive up the final price. This format allows buyers to determine the value of an item based on their willingness to bid and compete with others. Auction-style listings also generate excitement and a sense of urgency among buyers, as they have a limited time to place their bids.

Recognizing the need for a more streamlined and predictable buying experience, eBay introduced the “Buy It Now” feature, which enables Fixed Price listings. With this format, sellers set a specific price at which buyers can purchase the item instantly, without going through an auction process. Buyers have the option to click “Buy It Now” and complete the purchase immediately.

Fixed Price listings are advantageous for sellers who prefer a more straightforward and time-efficient approach. They are suitable for products with a set value or in high demand, where buyers are willing to pay the listed price without engaging in a bidding war. This format provides buyers with the convenience of making an immediate purchase, ensuring they secure the item without waiting for an auction to conclude.

Diversified Revenue Streams: Additional Services

Over the years, eBay has expanded its business model by introducing new services and diversifying its revenue streams. These additional services have contributed significantly to eBay’s overall revenue generation. Let’s take a closer look at some of these services:

• eBay Classifieds: eBay Classifieds is a platform that enables users to post local classified ads. It offers a wide range of categories, including jobs, real estate, services, and more. By providing this service, eBay has created a marketplace where individuals and businesses can connect and transact in their local communities. This has not only enhanced eBay’s offerings but also opened up new revenue opportunities through advertising fees and premium listings;
• StubHub: Originally acquired by eBay in 2007, StubHub is a ticket exchange and resale platform that allows users to buy and sell event tickets. While eBay sold StubHub in 2020, it was a significant addition to eBay’s revenue streams during the time of its ownership. StubHub provided a platform for users to access tickets for various events, including sports games, concerts, and theater performances. eBay benefited from transaction fees and commissions earned from each ticket sale;
• Advertising: eBay offers advertising services on its platform, allowing sellers to promote their listings and gain more visibility. This additional revenue stream provides sellers with an opportunity to reach a larger audience and increase their chances of making a sale. eBay offers sponsored listings, where sellers can pay a fee to have their products prominently featured in search results. Furthermore, eBay also allows external advertisements to be displayed on its platform, further contributing to its revenue generation.

The Network Effect: A Growth Catalyst

An instrumental factor behind eBay’s success is the network effect. As more sellers join the platform, it attracts more buyers due to the increased variety of goods available. Similarly, as more buyers use the platform, it attracts more sellers due to the increased potential for sales. This self-perpetuating growth cycle has allowed eBay to amass a vast user base, enhancing its platform’s value.

The network effect, also known as network externality, is a concept wherein the value of a product or service increases as more people use it. In the context of eBay, the network effect manifests itself in two key ways:

As more sellers join eBay’s platform, the variety and selection of goods available for purchase also increase. This attracts more buyers to the platform, as they have a wider range of options to choose from. Buyers are naturally drawn to marketplaces that offer a diverse inventory, as it increases their chances of finding the exact products they desire. The increased variety of goods available on eBay makes it an attractive platform for buyers, thus fueling its growth.

Conversely, as more buyers flock to eBay, the potential for sales and profits for sellers also rises. Sellers are more inclined to join a platform where they can reach a larger customer base, increasing their chances of making sales. The more buyers there are on eBay, the higher the probability that sellers will find interested customers for their products. This increased potential for sales acts as an incentive for sellers to join and remain active on the platform, further amplifying eBay’s growth.

The network effect creates a self-perpetuating cycle of growth for eBay. As more sellers join the platform, the increased variety of goods attracts more buyers. In turn, the influx of buyers entices more sellers to join, resulting in an even greater selection of products. This positive feedback loop continuously strengthens eBay’s position as a leading online marketplace.

eBay has strategically leveraged the network effect to solidify its competitive advantage. By actively fostering an environment that encourages both sellers and buyers to participate, eBay has been able to amplify the network effect and maintain its dominant position in the e-commerce industry.

Below is a table summarizing the key elements of eBay’s utilization of the network effect:

A vital element of eBay’s business model is its focus on customer satisfaction. The company strives to provide a secure platform for transactions, a robust seller rating system, and an effective dispute resolution process. These customer-centric initiatives have significantly contributed to eBay’s credibility and user retention.

• Security Measures: eBay has implemented multiple security measures to protect its users. These include data encryption, secure payment methods like PayPal, and stringent policies against fraudulent activities;
• Seller Rating System: Buyers can rate sellers based on their experience. This creates a transparent environment and encourages sellers to provide excellent service. The rating system includes aspects like item description accuracy, communication, shipping time, and shipping charges;
• Dispute Resolution: eBay offers a Money Back Guarantee program. If an item doesn’t arrive or isn’t as described, buyers can report the problem. eBay then facilitates a resolution process between the buyer and seller.

Technology plays a crucial role in eBay’s business model. Its sophisticated platform manages millions of listings, transactions, and users. The various technological facets include:

• Data Management: With millions of listings, eBay uses data management solutions to organize, categorize, and search through the listings efficiently;
• Payment Systems: eBay offers multiple payment methods and a secure transaction platform, PayPal, to facilitate smooth transactions;
• Artificial Intelligence: eBay employs AI to enhance search functionality, personalize user experiences, and detect fraudulent activities;
• Mobile Applications: eBay’s mobile apps provide accessibility to users, allowing them to browse, buy, and sell on the go.

eBay’s business model has evolved over the years. From being an auction-only platform, eBay introduced the fixed-price model to accommodate more types of sellers and goods. Here’s a timeline showing eBay’s business model evolution:

• 1995: eBay founded as AuctionWeb, an auction-only platform;
• 1998: Introduction of “Buy It Now,” the fixed-price model;
• 2002: Acquisition of PayPal to facilitate secure transactions;
• 2008: Introduction of “Best Offer” to negotiate prices;
• 2012: Introduction of the managed returns process;
• 2013: Introduction of eBay’s Global Shipping Program;
• 2015: PayPal spins off into a separate company;
• 2020: eBay sells StubHub.

The strengths of eBay’s business model lie in its scalability, network effect, and diverse revenue streams. However, eBay also faces challenges, such as competition from other online marketplaces like Amazon and Alibaba, dealing with counterfeit products and fraudulent activities, and ensuring user data security.

By delving deep into eBay’s business model, it’s clear that the company’s success has been largely due to its ability to innovate, adapt, and cater to the needs of its vast user base. Despite challenges, eBay’s commitment to providing a secure and efficient online marketplace has cemented its place as a leader in the e-commerce industry.

eBay makes money primarily through transaction and listing fees. They also earn from additional services like eBay Classifieds and advertising.

eBay offers two trading formats: Auction-style and Fixed Price listings.

eBay prioritizes customer satisfaction by offering a secure platform, a seller rating system, and a comprehensive dispute resolution process.

The network effect refers to the principle that the value of eBay’s service increases as more people use it. More sellers attract more buyers, and more buyers, in turn, attract more sellers.

eBay has evolved from being an auction-only platform to introducing a fixed-price model, acquiring and spinning off PayPal, selling StubHub, and introducing various services to enhance user experiences.

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eBay Business Model | Is eBay B2C or C2C? |eBay vs Amazon Selling Vs Postmark

Ebay business model.

eBay is a website that sells used and new goods. It is very easy to use and you will find some really unique items. You can also buy and sell goods. The business model is called a “marketplace.” This means that it is open to anyone to sell anything. They have had a very diverse marketplace. It is one of the major places that most people go-to for buying and selling.

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eBay is a giant marketplace that allows people to trade with each other online. The website has been around for a while and it attracts millions of buyers and sellers around the world.

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The company was founded back in 1995 by Pierre Omidyar, a French-American, and founder of the first Internet company. eBay has been marketed as an online auction site. In fact, it’s the largest one in the world. It doesn’t trade in any goods or services but instead facilitates the process of trade between buyers and sellers.

What is the eBay Revenue Model?

The eBay revenue model is to offer a two-sided marketplace that (1) connects buyers and sellers, and (2) provides the platform. As such, eBay earns most of its revenue from fees charged to the participants on each side.

One thing that makes eBay different from other auction sites is that it charges a commission to the seller for every sale. The company has been regularly changing its policy over the last few years.

For instance, it had been allowing just about anything to be sold, except for trademarked items. Now, it bans firearms and other dangerous weapons, but after a huge outcry from the users, it has changed its decision. It still allows the sale of these items but it is done through private sale channels.

The old policy was known as “any tool, any time.” Another important change in policy was that the company did not allow any kind of financial service to be sold on its site. For example, you could not sell stocks or bonds on eBay.

However, it is now adding the option to buy and sell these types of financial instruments. The company’s policy allowed almost anything on eBay. As a result, many people resorted to setting up their own websites as an eBay competitor.

These new sites usually offered lower prices for buyers so that they could attract more sellers to their site in order to reach the same amount of traffic as eBay. However, thanks to the marketer hype it attracts on a regular basis, these new sites fail soon after.

Is eBay B2C or C2C?

eBay is a buyer-to-seller platform with an auction element, in which bidders win the eBay item or make other arrangements with the seller at end of the auction.

eBay is a C2C marketplace, meaning that a buyer will purchase an item directly from a seller. When the transaction is complete, eBay acts as the middleman. eBay is also B2B, which means that the seller is working directly with a buyer. In this scenario, eBay acts as the facilitator in the transaction.

eBay vs Amazon Selling

Amazon’s business model is more diversified than eBay’s. Amazon has retail, services, content production, and electronic commerce, while eBay has primarily focused on retail. Amazon has higher revenue and is a more diversified company, but eBay has higher growth rates than Amazon .

The company is known to have a lot of different aspects to it. It has many different categories of products, there are different payment methods, and it has customer service representatives. On the other hand, Amazon does not have as many payment methods as eBay and they do not offer customer service.

The employees there are all non-union and often work hard long hours for minimum pay. Once you sell an item through Amazon or eBay, you ship it to the buyer using the company’s shipping program.

eBay vs Poshmark

Poshmark is another auction site much like eBay. It’s a pretty good choice for people who want to get rid of their used clothes.

On the other hand, for people who want to buy new clothes or work out some unique designs, then Poshmark might not be the best choice because the items on Poshmark are usually second-hand items that are in good condition but not brand new.

The items that you sell on Poshmark are usually brand new but in poor condition. Most of the people who go to Poshmark are people who already have good coupons and want to get the best bang for their buck.

eBay vs Overstock

Overstock is a great resource for shopping. You can find just about anything that you are looking for. The website also offers discounts that are better than most websites. Overstock is based on the idea that there is always someone who is looking for something second-hand or even new but cheaper than its original price.

Though overstock offers new products , most of the products are second-hand. This is the main reason it’s cheaper than other websites selling the same products. However, it has a reputation of being one of the greatest places to buy computers, clothing, and other items.

Overstock is known for its excellent customer service as well as its no-questions-asked returns policy. It’s also known for its excellent shipping times and customer support service.

eBay vs Craigslist

Craigslist is another website that you can use to buy and sell items. It offers the same services as eBay, but it’s not as well known as eBay. The website has been running for more than 20 years, but they haven’t gained a lot of popularity until recently.

This is mainly because their services are very similar to that of eBay’s and most people feel that it’s easier to just buy or sell things on the eBay website than on Craigslist because of the difficulty in navigating the website.

Craigslist is not known for its friendly customer service either. However, just like eBay, CraigsList does have an excellent reputation and a lot of loyal customers.

In fact, most people say that Craigslist has better customer service than eBay. There are also a ton of different payment methods like PayPal, Checks, and wire transfers available on Craigslist as well which is not usually the case with eBay.

eBay vs Amazon vs Etsy

Etsy is one of the biggest websites that deal in handcrafted products. The website allows sellers to sell their handmade products. It’s a great place for artists who are looking to showcase their skills.

The website has a lot of loyal users and it’s known for its excellent customer service which is not usually the case with most other online shopping websites.

Etsy is also known as being one of the most environmentally friendly websites as the products sold on this website are usually made from recycled materials or natural fibers like cotton and hemp.

Amazon.com is the biggest online retailer and the largest internet company in the world. It’s one of the most popular online shopping websites in America. It has a wide variety of products for sale including books, music, videos, electronics, and much more.

The website has a huge customer base and most people feel that it’s easy to navigate through Amazon’s huge database of products and services they offer.

Amazon’s customer service is also reportedly excellent. However, many people feel that their “big brother” type of database monitoring can get a bit unnerving at times. Many people also feel that the prices on Amazon are ridiculously high.

Amazon also has an  affiliate program which actually makes it a pretty good website to buy products from if you’re into affiliate marketing. Generally, Amazon has a very large customer base and it’s guaranteed that you’ll find exactly what you’re looking for on this website.

Amazon Prime is Amazon’s premium service that people can subscribe to for   $119  for an annual membership or  $12.99  per month. This service offers a lot of incentives like free two-day shipping on most of their products, unlimited streaming of movies and TV shows, unlimited access to Kindle books, and so on.

Some people also feel that Amazon Prime’s customer service is really better than any other website’s customer service department. This is definitely something you should consider if you’re planning to shop numerous times on Amazon.

eBay has a huge variety of products for sale. The great thing about eBay is that you can find a rare or uncommon item for sale here. A lot of people also sell their items on eBay because it’s pretty widely known and easy to use. There’s also an affiliate program with which you can earn commissions.

You can earn up to 5 percent from buying and selling products sold on eBay.

etsy.com is another website that’s popular with goods sold or shared. The website has about 45Million listed items,  “handmade” ones. On this website, you can easily find handmade items as well as custom artworks such as paintings, ceramics, and so on.

Some people don’t trust the authenticity of sellers unless they are verified ones. Etsy has a process in which a seller is verified. This is very difficult to do in India, so it’s not a big deal for me to not have verified sellers. If I want to buy something from Etsy, I would look at the picture and description given and if found interesting, I would place an order.

You can also check the seller’s feedback comments and if many people say the product is fake or of poor quality, then it’s better to stay away from that particular seller.

eBay Vs Etsy

Etsy is another site that is similar to eBay. Again, as with eBay, sellers do not need to pay a fee to list their items. There is no information on the company’s website on how they make money in terms of profits and sales growth. However, the company has been doing well and it appears that they are a profitable business.

The company believes that buyers care about products made by companies or individuals that have values and principles. They want quality products from sellers who care about the environment and people in their community. Etsy is a place for people to find unique handmade items and products that they can only buy from that person.

As with eBay and Amazon, you are able to be both a buyer and a seller. You can also sell vintage , handmade, or other types of goods. They also offer digital goods but mostly sell things that are handcrafted or handmade.

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What Is the Meaning of the C2C Business Model?

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C2C is the common acronym used to describe a relatively new business model known as consumer-to-consumer. Other prominent industry models include business-to-consumer, or B2C, and business-to-business, or B2B. The C2C market has evolved since the late 1990s in large part because of the Internet and e-commerce. In a C2C market, one consumer buys goods from another consumer using a third-party business to facilitate the transaction.

Online auction sites and other e-commerce platforms provide a third-party marketplace where consumers can buy and sell goods. EBay and Amazon.com are two prominent third-party C2C providers. EBay is a top auction site where individuals can list goods for customers to bid on. Amazon.com is the world's largest online retailer. The company operates as both a B2C and a C2C market, meaning it markets goods directly to customers and allows users to sell goods themselves. These C2C facilitators earn fees or commissions by allowing sellers to list and sell goods through their websites.

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Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.

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Amazon Seller Fees

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How Are eBay and Amazon Different?

Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed.

The electronic commerce (e-commerce) movement is bigger than ever and only shows signs of becoming bigger. Under the purview of e-commerce companies, both eBay ( EBAY ) and Amazon ( AMZN ) stand out as longstanding, major players in the marketplace.

Both eBay and Amazon are online shopping sites, providing visitors the ability to browse through available products listed for sale or auction through each company's online storefront. While eBay and Amazon have both evolved over time to meet the needs of today's consumers, there are distinct differences between the two companies. Amazon and eBay differ in terms of business models and pricing, services for sellers, and ancillary services for buyers.

Key Takeaways

• Both eBay and Amazon are two of the largest and longstanding major players in the e-commerce sector.
• Amazon and eBay have many similarities, primarily in attracting visitors to their site, providing them the ability to browse available products and make a purchase.
• The differences between the two companies lie in their business models; Amazon operates like a traditional retail store whereas eBay functions more like an auction house.
• Amazon relies on third-party sellers to list their products on the site so that consumers have a large inventory of goods to search through. Similarly, eBay relies on sellers to list their goods for sale to be auctioned off in a certain time period.
• Amazon is buyer orientated while eBay is seller orientated.

Business Models and Pricing Strategies

The greatest difference between eBay and Amazon is the business model under which each company operates. Specifically, eBay is an auction house and marketplace that simply facilitates the sale of goods between third-party buyers and sellers. Buyers visit the site to search for products they want to buy from a vast array of individual sellers and then bid on items through individual auctions.

Conversely, Amazon is a direct provider of goods , and customers visiting its site view products that Amazon maintains as inventory in its large network of warehouses. Amazon's products are either from their own brand or from third-party sellers, the latter of which makes up the bulk of its offerings. In 2015, third-party sellers started making up more than 50% of Amazon's sales, a number that continues to grow.

Within an auction model, eBay employs a wholesale pricing strategy . In most cases, interested buyers must bid on items for sale on eBay Sellers list auction items for a three-, five-, seven-, or 10-day period, and the buyer willing to pay the highest amount wins the product at the end of that time frame. Some items listed on eBay feature a "buy it now" option, which allows a buyer to purchase the product immediately, albeit likely for  a premium .

Amazon operates as a retail outlet, providing customers with fixed prices on all products. While various sellers may list the same product, there is no need for a customer to place bids or win an auction before purchasing.

Seller Services: Is eBay Cheaper Than Amazon?

Amazon and eBay also differ greatly in terms of how each company works to facilitate sales . Because eBay needs sellers to list products on its site to generate revenue, the company is far more seller-oriented than Amazon. Notably, eBay actively invites sellers to participate in its auction marketplace , and the company provides platforms for sellers to offer products to buyers within an eBay store or through the auction site's classified section.

Amazon is more buyer-oriented, actively inviting buyers to visit the site to browse through and subsequently purchase the inventory listed on the site, as one would in a traditional retail store. While Amazon uses third-party sellers to distribute products, the company is more focused on attracting buyers to the site rather than sellers.

It doesn't matter if you're a small seller or big potatoes with an already established product line that you want to put onto the Amazon marketplace as a third-party seller. Amazon offers third-party sellers two different plans (individual or professional) based on their prospective selling habits and other key features.

You'll have to decide which one fits your needs. The professional plan is geared toward those who plan on doing a lot of selling, while the individual account is a no-frills, cheaper alternative. Below are some of the features of both plans.

Amazon Professional Account

If you're planning on selling more than 40 items each month, this is the option for you. But it does come with a subscription fee of $39.99 each month. That means you'll be paying almost $480 a year to put and sell your products on Amazon. You also get access to Amazon Sponsored Products ads, which put your products into ads on different product pages for customers to view. This option doesn't have any selling fees, but referral fees do apply.  

Amazon Individual Account

This plan is tailored for anyone who plans to sell less than 40 items each month. The benefit of this account is the lack of a monthly subscription fee. But you do have to pay the selling fee to Amazon: $0.99 for every item you sell on the site. There are also referral fees that apply to each sale, just like the professional account. The one downside is that you have no exposure to your products through Amazon's Sponsored Product Ads.

Here's how Amazon calculates end revenue for an item sold by a third-party seller on the platform:

• Take the item price, and add the shipping charges, which are paid by the buyer.
• Add any gift wrap charges, also paid by the buyer (if any).
• Subtract the referral fee (which is calculated on the item price as well as any gift wrap charges).
• Subtract the closing fee.
• Subtract $0.99 per item fee (not applicable to professional accounts and others who don't pay subscription fees).
• Remainder equals total deposited to the seller account.

Notably, eBay charges its sellers two different fees: an insertion fee and a final value fee. Here's a breakdown of each:

• Insertion fee :   The company's insertion fee is the same as a listing fee. All sellers get up to 200 zero-fee listings every month. Those who have an eBay store may get more. Once those are used up, the fees cannot be refunded even if the item doesn't sell. Sellers are charged one insertion fee per listing, per category. The account holder gets one fee credit for every auction-style listing for which they paid an insertion fee, provided the item sells.
• Final value fee : If the item sells, eBay charges sellers a final value fee. The value of the fee, charged per item, depends on the total sale amount. Although tax is not included, the total sale amount includes shipping and any other additional charges added to the item's price.

Additional fees may apply. Here's a look at two of them:

• Advanced listing upgrade fees :   The company charges sellers fees if they add advanced listing upgrades. The fees are based on the type of upgrade added. These are add-ons to the listing that aren't covered in the basic listing or insertion fee. Not all listing upgrades are available with every listing tool.
• Supplemental service fees : The site also charges sellers supplemental service fees. These range from shipping labels originated from the eBay site or refund reimbursements to eBay.

Another vast difference between eBay and Amazon is the ancillary services available to buyers. In recent years, Amazon has rapidly expanded its additional services , most notably through Amazon Prime. The membership program requires users to pay an annual fee but grants them exclusive access to expedited two-day shipping at no additional cost, digital media such as movies, music, and Kindle e-books, and unlimited photo storage through the cloud.

Though Amazon and eBay are two of the largest players in e-commerce, both have vastly different business models. Amazon operates like a traditional retail store, attracting buyers to its site to purchase its listed inventory, while eBay attracts sellers to list their personal goods, operating as an auction house or a garage sale.

As a buyer, depending on what you are seeking to purchase, either Amazon or eBay will be a better fit for your needs. Similarly, as a seller, based on your business model and selling needs, one company will work better for your business goals.

eBay.com. " About eBay ."

FourWeekMBA. " Third-Party Sellers and Amazon's Platform-First Business, Will It Last? "

eBay. " Listing Durations and Timings ."

eBay. " How Bidding Works ."

eBay. " Selling With Buy It Now ."

eBay. " Start Selling on eBay ."

eBay. " Selling With Classified Ads ."

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eBay Business & Revenue Model Explained

E-commerce was on the rise even before COVID-19 turned the world upside down. But the pandemic accelerated the growth by pushing more consumers to shop online.

In 2020, as per recent studies, U.S. e-commerce sales grew more than 30% from the last year owing to the pandemic. It came to light that Americans spent a whopping  $791.7 billion online in 2020 , up 32.4% in the prior year.

eBay is one of the oldest yet most influential e-commerce platforms around the globe. It was even regarded as the  second most popular e-commerce platform  as of June 2021.

Whether you’re interested in building your own e-commerce platform like eBay or just wondering how eBay works, this post is for you.

Here, we’ll help you give insight into eBay – its business model and revenue model to generate millions of dollars in revenue.

So, let’s begin with a quick introduction to what eBay is all about.

A Quick Overview to eBay 

eBay is a prominent online marketplace platform for buying and selling a wide range of new as well as used products. It engages in both consumer-to-consumer (C2C) and business-to-consumer (B2C) transactions.

At present, eBay has a presence in more than 100 countries with  17M sellers  and 147M active buyers from all over the world.

Know more: What Type of Platform is eBay? 

How Does eBay Work?

eBay has evolved from an online auction platform to a true marketplace platform that focuses on the consumer-to-consumer (C2C) and business-to-consumer (B2C) model.

The platform doesn’t maintain inventory. Instead, it acts as a middleman connecting buyers and sellers in one place to buy and sell items.

1. eBay for Sellers

eBay enables sellers to list their items under Auction-style listing wherein sellers have to specify certain things such as the minimum bidding price. Here, the highest bidder gets the item.

There is also another type of listing on eBay for sellers i.e., Fixed-price listing wherein eBay enables sellers to list their products with the “Buy It Now” option.

In addition to that, eBay even allows sellers to open their own store on the platform.

2. eBay for Buyers

When it comes to buyers, eBay enables them to browse through a wide array of items.

Depending on the type of listing, buyers can either bid on items listed under Auction-style listing or purchase them at the set Buy It Now price.

How Does eBay Make Money?

As per Statista findings, eBay clocked over  $2.67 billion in revenue  – which is a 14 percent increase year-over-year.

So, what strategies does eBay follow to make money?

eBay makes use of the following revenue models to bring money to the table:

1. Listing Fee Model

eBay enables sellers to list a minimum of 250 items per month on the platform for free. Once the limit is consumed, the platform starts charging a listing fee/insertion fee i.e., $0.35 for every listing.

Remember: there are certain categories on which eBay charges insertion fees between $20 and $300 per listing. For more information regarding it, click  here .

2. Commission Based Revenue Model

Like most other marketplaces out there, eBay has adopted a commission revenue model wherein the platform earns a commission whenever sellers make a sale on the platform.

The commission earned by the platform is in the form of the “Final Value Fee”, which is measured as a percentage (3% to 15%) of the total amount of the sale and $0.30 per order.

3. Advertising Based Revenue Model

In addition to the Final Value Fee, eBay also makes money through its advertising services to its sellers as a way to promote their listings.

It works via the “Sell It Faster” option available in the Seller Hub that allows sellers to promote their products.

eBay empowers sellers to select an ad rate between 1% – 100%. The company has a simple rule: the higher rate of the ad, the more it will promote product listing.

eBay charges sellers the ad rate when a buyer clicks on one of their ads and goes on buying within 30 days.

4. Subscription-Based Revenue Model

Another way eBay makes money is through store subscription service to sellers who have set up their own store on the platform.

There are five tires of store subscriptions and have a look below at the fee charged by eBay per month when a seller goes with yearly renewal:

• Starter: $4.95
• Basic: $21.95
• Premium: $59.95
• Anchor: $299.95
• Enterprise: $2,999.95

In addition to these revenue models, eBay has acquired several companies. This mergers & acquisitions model of the company is able to bring significant money to the table.

Check: Great Online Marketplace Ideas for Entrepreneurs

To build your own platform like eBay contact. Start a Conversation

What Makes eBay Different from Other Marketplaces Like Amazon?

The e-commerce marketplace industry has many strong players besides eBay such as Amazon, Etsy, Walmart – to name a few.

But eBay is more than just an online marketplace that connects millions of buyers and sellers in one place. It is also an auction house unlike other e-commerce marketplaces out there.

To put it into simple words, eBay is the only platform that provides an auction of items in addition to enabling selling and buying products at a fixed price.

Thus, eBay attracts a pretty large audience from all over the world. People in possession of rare collectible items and those interested in such items find product auction listing on eBay an appealing feature.

In addition to that, eBay has several programs for both sellers and buyers such as a money-back guarantee, Top Rated Seller program, and Verified Rights Owner Program – to name a few.

eBay’s commitment to fostering a safe place to sell and buy online has helped it build and maintain a loyal customer base worldwide.

Learn: How to Hire Remote Developers?

With that, you now know how eBay operates and makes money.

Its success today relies on various business and revenue models it has adopted: commission-based revenue model, listing fee revenue model, advertising revenue model, subscription revenue model and mergers & acquisitions (M&A) business model.

If you’re interested in building a similar online e-commerce marketplace like eBay, hire remote developers who guide you from strategy to the successful development of your product vision.

You can hire developers either from IT outsourcing companies or platforms like Upwork. If you’re serious about your venture, you should consider hiring dedicated developers from a software development company.

That way, you’ll get to work with fully managed and pre-trained developers who can give their contribution from day one. Moreover, you’ll get access to all experts – software developers, designers, and testers under one roof at competitive rates.

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What Is The C2C Business Model? The C2C Business Model In A Nutshell

The C2C business model describes a market environment where one customer purchases from another on a third-party platform that may also handle the transaction. Under the C2C model, both the seller and the buyer are considered consumers. Customer to customer (C2C) is, therefore, a business model where consumers buy and sell directly between themselves. Consumer-to-consumer has become a prevalent business model especially as the web helped disintermediate various industries.

Table of Contents

Understanding the C2C business model

In the offline world, the customer-to-customer business model has existed for years. Take the humble farmers market, for example, where farmers pay market organizers for a stall where they can sell their produce to consumers. The classifieds section of a newspaper is also a typical example of the C2C model.

The model has also become popular online due to advances in eCommerce technology, with eBay considered a pioneer of the strategy when it was launched in 1995. The C2C model has also benefitted from the rise of the sharing economy, where goods and services are shared on a community-based online platform. Companies in this space include Airbnb, Uber, Spacer, Airtasker, and Gumtree.

Four types of C2C business model platforms

Most C2C platforms make money by charging sellers a listing fee or collecting a small commission on each successful transaction. 

Examples of these platforms include:

Exchange of goods platforms

Which connects buyers and sellers looking to exchange physical goods. Some of these platforms exist in website and app form and allow both parties to complete the transaction in person. Examples include eBay and Etsy . 

Exchange of services platforms

Where buyers and sellers come together to exchange money for services. Freelancing platforms such as Fiverr , Upwork , and 99designs are commonly cited examples. However, there are also platforms selling dog walking, house sitting, and employment services. 

Auction platforms

Here, sellers list goods at a minimum price and allow buyers to bid on them for a set time. Auction platforms such as eBay offer an assortment of goods, while others are more specialized. For example, Sotheby’s is known for luxury and collector items while Copart sells used and wholesale vehicles.

Payment platforms

These C2C platforms exist to facilitate transactions between the buyer and seller, with many also charging a small fee when sellers transfer earnings to their bank accounts. Examples include Stripe , PayPal , and Payoneer.

Strengths of the C2C business model

There are several obvious benefits for buyers and sellers under the C2C model:

• Increased profitability – the model is attractive for sellers because they avoid many of the costs associated with rent, website hosting, marketing , and distribution . For example, a freelancer can create an account on a services platform for free and start attracting customers almost immediately.
• Increased customer base – online merchants can also sell their goods to a vast online audience where there is demand for niche or less-popular items. In most cases, the merchant also gains access to the C2C platform’s user base when they sign up for an account.
• Credibility – one drawback of the customer-to-customer business model is the potential for fraudulent transactions from unproven sellers. While many sellers do not have a proven track record, they can leverage the reputation of a C2C platform to build positive customer reviews and establish a reputation that way.

Key takeaways:

• Customer to customer (C2C) is a business model where consumers buy and sell directly between themselves. The strategy has become very popular thanks to advances in eCommerce technology and the sharing economy.
• Customer-to-customer platforms include exchange of goods platforms, exchange of services platforms, auction platforms, and payment platforms. Third-party facilitators earn revenue by charging listing, transaction, or withdrawal fees. 
• The C2C model reduces overheads and increases profitability for sellers. With access to a vast online audience, sellers may also be able to find a market for niche items or items otherwise unviable in a bricks-and-mortar store. Buyers can transact through established C2C platforms to reduce the potential for fraudulent transactions.

Key Highlights

• Definition of C2C Model : The C2C business model involves direct transactions between consumers, where one consumer sells products or services to another consumer through a third-party platform that facilitates and often handles the transaction.
• Offline and Online Existence : C2C interactions have existed offline for a long time, such as farmers’ markets and classified ads in newspapers. The model gained significant traction online due to advancements in eCommerce technology. eBay played a pioneering role in establishing the C2C model in the online space.
• Exchange of Goods Platforms : Connect buyers and sellers for physical goods exchange, with examples like eBay and Etsy.
• Exchange of Services Platforms : Enable transactions for services, including freelancing platforms like Fiverr and Upwork, as well as other service-based offerings.
• Auction Platforms : Sellers list goods with a starting price, allowing buyers to bid on them. eBay and Sotheby’s are examples, catering to different markets.
• Payment Platforms : Facilitate transactions between buyers and sellers, often charging fees for transactions and withdrawals. Examples include PayPal and Stripe.
• Revenue Generation : C2C platforms typically generate revenue through listing fees, transaction fees, commissions on successful sales, or withdrawal fees, depending on the platform type.
• Cost Savings : Sellers can avoid expenses related to physical stores, marketing , distribution , and other overheads.
• Access to Customers : Sellers gain access to a broad online audience and can target specific niche markets that might not be viable in traditional brick-and-mortar settings.
• Ease of Entry : Setting up accounts on C2C platforms is often straightforward, enabling sellers to start attracting customers quickly.
• Diverse Selection : Buyers can access a wide range of products and services from various sellers.
• Trust and Reputation : Established C2C platforms provide credibility through seller reviews and platform reputation, reducing the risk of fraudulent transactions.
• Credibility Building : Sellers without established reputations can leverage the platform’s reputation to build positive customer reviews and establish their credibility over time.
• Rise of Sharing Economy : The growth of the sharing economy, exemplified by platforms like Airbnb and Uber, has contributed to the C2C model’s success. These platforms allow people to share goods and services within a community.
• Global Reach : Online C2C platforms have a global reach, enabling transactions between buyers and sellers from different parts of the world.

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Ecommerce Explorer

what is c2c (consumer-to-consumer) ecommerce | A complete guide

Table of Contents

What Is A Consumer To Consumer Ecommerce

Examples of A C2C commerce:

• No inventory is required  Inventory is not required because a C2C platform is simply a middleman taking a share of the Consumer-to-consumer commerce transaction. It removes the need for storage and transportation facilities and tying up capital in inventories. It also eliminates the B2B shipping fees.
• The requirement fewer employees  A company with no inventory does not require packers, shippers, or drivers.
• Turns buyers into sellers  Buyers accustomed to using a website as a purchasing platform may regard it as a credible place to sell.
• User agreements determine how involved a C2C platform is in a customer-to-customer commercial transaction. The user agreement for Kickstarter, for example, stipulates that it is not liable for the contract between the author and their backers.
• Is not liable for forgeries   Tiffany & Co. sued eBay, alleging that eBay benefitted from forgeries of their high-end goods. Courts have ruled that C2C websites such as eBay are not liable for forgeries sold on their platform.

The C2c Ecommerce’s Benefits

The drawbacks of a c2c ecommerce, c2c commerce business model stability, payment processing integrated, similar posts.

The Consumer To Business Examples

What is B2B2C E-Commerce Business? How does it work?

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Share of eBay C2C users selling pre-owned goods in 2020, by country

Share of ebay c2c sellers who started selling pre-owned goods during the coronavirus outbreak worldwide in 2020, by country.

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Show sources information Show publisher information Use Ask Statista Research Service

Canada, France, Germany, United Kingdom, United States

October 12 to November 9, 2020

4,330 respondents

C2C sellers

Online survey

The source adds the following information about the sample used in the research: "In the U.S. and Canada, this includes all sellers with less than 10,000 dollars gross merchandise value GMV or fewer than 25 transactions in a year. In the U.K, Germany and France this includes any seller who identifies themself as C2C."

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C2C eCommerce: Definition, Benefits, Examples, and More

There was a time when C2C ecommerce platforms almost didn’t exist. Buyers used to doubt the quality they might receive online and sellers weren’t sure if they would be able to make a sale online. But during the pandemic, C2C ecommerce has made a global impact in the ecommerce world.

Nowadays, millions of people sell their unwanted goods online. And to enable them to sell directly to buyers, more and more entrepreneurs are creating C2C ecommerce stores.

However, there are a lot of business owners who still have no idea about the benefits of this business model and the best C2C ecommerce platforms out there. In this blog, Techosquare will tell you everything about launching a C2C ecommerce store in 2022.

From meaning to benefits, and examples to popular ecommerce platforms, we will cover all important aspects. Let’s start with the meaning first!

What is C2C eCommerce?

Consumer-to-consumer (C2C) ecommerce is a commerce model in which one consumer sells his goods or services to other consumers online. It is one of the four pivotal ecommerce business models, the other three being B2B (business-to-business), C2B (consumer-to-business), and B2C (business-to-consumer).

transaction that is made between two customers is led by a third party, basically by online actuation, social media platform, or ecommerce website, that looks after transaction status, payments, and other aspects. It helps sellers as well as buyers to find each other by charging a small fee or commission.

What are Benefits of C2C eCommerce Business Model?

The digital shift in the consumer buying and selling process is very real and businesses who are not already online will need to act fast and enter the C2C ecommerce scene soon.

If your motive is to provide consumers a platform to buy and sell goods in all segments or a specific segment, generate max sales and give a boost to your market share, you need to understand the value of C2C ecommerce.

So, why exactly should you be starting a C2C ecommerce store? Here are the reasons:

#1 Huge profits

W. Edwards Deming - a famous American engineer - once said, “Profit in business comes from repeat customers; customers who boast about your product or service and bring their friends along.” By providing a good online C2C platform to buy and sell, your business will gain their trust.

Also, they are likely to recommend your C2C ecommerce marketplace store to their friends which in turn will increase profitability for both sellers and your business. And do you know what else will boost profit? Zero involvement of intermediaries! It will lower the cost of the product or service being offered, thus, increasing business profitability.

#2 More savings

Earlier, C2C used to occur mostly at flea markets, through the classified section of a newspaper, at a garage sale, or thrift stores. Sellers had to secure their stall in the market area in order to sell products. They also had to pay for taking space outside the shop or at a specific spot in the flea market, electricity, and staff.

As if these weren’t bad enough, the COVID-19 pandemic has limited physical buying-selling interaction to a great extent. Meaning, sellers aren't making enough profits to easily pay those additional costs.

*Enters C2C ecommerce model*

Starting a C2C ecommerce marketplace provides sellers a platform to sell their products to online buyers and lower operational costs by a long chalk and that too while sitting at home.

Benefit for you? You will make money from fees or commissions charged to sellers for listing items for sale or on making a sale. And those commissions will be way more than commissions you used to make in the physical world.

70 e-commerce features to include in your C2C ecommerce store.

#3 Increased customer base

One of the biggest advantages of the C2C ecommerce model. With a physical marketplace, the number of visitors and potential customers walking in depends on chance, store location, and marketing. With a C2C ecommerce store, the chances of getting visits by customers (both sellers and buyers) and transactions are much higher.

C2C ecommerce also increases your access to a worldwide audience. Meaning, customers will be able to come to your platform and sell their products, that too while sitting in different corners of the world. They will increase the chances of conversion.

#4 Convenience for both parties

Okay, this benefit is not for C2C ecommerce platform owners but customers (sellers and buyers). The C2C ecommerce business model removes most barriers that prevent people from using virtual of business models. Meaning, it provides convenience to both buyers and sellers.

The costs involved in starting a traditional small business or thrift store to sell products are too high for many sellers. In fact, some sellers don’t even want to sell their products as their main source of income. Similarly, it is difficult to find and buy goods at services at reasonable prices for buyers in their cities.

C2C ecommerce model will sweep away these inconveniences and make it easy to conduct business from your own home.

What are Best C2C eCommerce Business Examples?

There are many C2C ecommerce business examples already involved in several different industries. Here are the popular ones:

Are you a huge fan of handmade or vintage products as well as unique factory products? If yes, you must have heard about Etsy . It is a very popular multivendor C2C ecommerce store that allows customers (especially those independent artists and crafters) to sell their goods to other customers.

Etsy focuses on handmade toys, collectibles, art, home goods, vintage furniture, clothing, and jewellery.

We bet you guys know this C2C ecommerce website very well. Who doesn’t? eBay is a popular shopping website in which customers buy and sell a large variety of goods and services worldwide. And do you know this website is not only built for customers? Businesses can also enjoy the great benefits of eBay.

Meaning, apart from using C2C ecommerce model, eBay also utilizes B2C business model. This website has been in the industry for a long time and has great market acknowledgment.

One of the greatest C2C ecommerce platform examples to emerge from India. OLX is almost similar to eBay. OLX has made it so easy for people to buy, sell, and exchange new as well as used goods and services online. One major difference between these two websites is that it doesn’t use a B2C business model.

Another difference is that unlike eBay, which asks you for an insertion fee when you create a listing, and a final value fee when your item sells, OLX is mostly free. This C2C ecommerce website also has its own mobile application

Another great C2C ecommerce platform example. Alibaba allows customers to sell their products to other customers worldwide. Also known for using the B2C ecommerce model, this giant trading platform is built specifically for Chinese customers who want to sell and ship their products outside of China. AliExpress has over 150 million customers all over the world including US, Canada, India, Russia, UK, and other countries.

Okay, it seems like we have covered all important aspects of the C2C ecommerce store. That said, we are…

Wait, aren’t we forgetting something?

Oh, we didn’t tell you about the C2C ecommerce platform!

Which is the Best Platform for Building a C2C eCommerce Store?

SwiftKart is one of the finest self-hosted C2C e-commerce software solutions that can be used to launch fully functional and aesthetically pleasing C2C stores. The self-hosted solution is loaded with powerful features that simplify the digital transformation for offline C2C businesses.

Online customer-to-customer stores, especially marketplaces, built using SwiftKart bring the best of both worlds by guaranteeing quick turnaround, low cost, and future scalability.

The following are the reasons why SwiftKart has captured the fancy of C2C business owners in 2022:

• Multilingual capabilities.
• Airtight security
• 100% scalability
• Multi-vendor capabilities
• One-time fee starting at US$999
• All core e-commerce features
• Mobile-friendly design

Learn more about the best C2C ecommerce store builder .

C2C eCommerce: Final Words

C2C ecommerce industry is a flourishing and rapidly developing industry of 2022 that has made the process of buying and selling for customers as easy as ABC. Also, keep in mind that the beginning of a C2C ecommerce store can be quite difficult.

Make sure to do thorough research, give your C2C business some time, and use proper planning and tools. We have now told you everything about C2C ecommerce.

Got any queries to ask? Send them to [email protected] and have them answered by our ecommerce experts.

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Business Model of eBay

“Some people dream of success, while others get up in the morning and make it happen.” This quote rightly sums the par excellence business ideas that we get to witness once in a while. Whenever we talk about B2C (business-to-consumer) and C2C (consumer-to-consumer) multinational e-commerce online marketplaces, eBay presents the most illustrious and a top-notch business model. Created as “AuctionWeb” by Pierre Omidyar at his home in California on the labour day weekend of September 1995, eBay, undoubtedly, has one of the most competent business models on the face of the earth. The never seen before and masterly business model of eBay permits a one-to-one trading opportunity in the form of an auction. What began as a dais for auctioning products is not only the ruling e-marketplace but also is a lucrative classified service and online ticket provider. They are lending a helping hand in carving an e-platform rendering exceptional services and metamorphosing the entire trading experience. This environmentally sustainable company is focussed on shifting to renewable sources of energy for generating electricity at its data centres and offices. It strives ahead to work in a socio-environment friendly and a low-carbon economy.

Let’s scour the business model of eBay, which even made the selling of a broken laser pointer possible.

1. User-Oriented Mission

eBay’s mission is to provide unparalleled service to its users. Now, this might seem a bit cliched, but what sets them apart from other e-marketplaces is their unprecedented determination to stick to their goal. Just as you read this, they will be striving ahead with yet another policy to develop an improved and more user-friendly interface. Their incomparable business model has enabled them to be the golden boy of the virtual marketplace; where remarkable appraisals are unearthed, and an infinite number of products are available. Not only this, eBay aspires to be a stage for newbies of the business world and to render them an economic opportunity for thriving in this ultra-competent business world.

2. Customer-Enabled Commerce

Now it’s no wonder that most businesses kick-start with a commercial purpose. This e-marketplace, i.e., eBay, has an out-of-the-box insight of enabling people to carry out e-trade and e-commerce. What provides them with an edge is their potential to walk hand-in-hand with their sellers and not just pit itself against the sellers. Their excellent services enable a personalised experience between the buyer and the seller. Henceforth, it can rightly be said that eBay is an open resource, which spares no effort to empower its users in terms of e-trade, and thereby, create wonderful economic opportunities.

3. Transforming Passion into Sales

eBay provides an excellent set of circumstances for all categories of its users. The online marketplace lets its users transform their passion into a business opportunity, and hence, sales. Whether its user is looking for an additional source of income, is a casual seller, a budding entrepreneur, or a marketing executing of an MNC who wants to expand its clientele, eBay stands shoulder-to-shoulder with its users enabling them to flourish. In this whole process of letting its customers prosper, eBay leaves no stone unturned, again, in paving the way for great economic opportunities. Hence, each one of eBay’s user contributes to the global economy.

4. Comprehensive Acquisitions & Investments

One of the many reasons why and how eBay attained the top position in the business world is highly competent acquisitions. By the end October 2018, eBay had secured nearly 64 organisations. Skype, a voice over Internet protocol, is its most prized possession with an estimated worth of US$2.6 billion. It first made its foray in acquisitions with the procurement of an online auction company, Up4Sale.com; back in July 1998. What’s more interesting is the fact that all the acquired companies are US-based and related to the online auction.

5. Global Diversification and Impact

Geographical diversification and integration have also enabled it to blossom in the universal entrepreneurial topography. It credits the factors described above as critical tools for its hold in the masterly business world. Their philosophy to face challenges in the new geography has paved the way for countless opportunities for their workplace, workforce, and marketplace. In this way, they have brought together buyers and sellers in an utterly comfortable and promising environment.

6. Philanthropy

Apart from being a successful tech company, eBay has also indulged into a lot of charitable projects. The business model of eBay is based on sound ethical values. eBay has been one of the founding members of Global Coalition to End Wildlife Trafficking Online. It has come forward as a responsible member aimed at protecting endangered and threatened species from illegal trade. The Global Coalition to End Wildlife Trafficking Online is also supported by 21 other tech firms. This global coalition aims to axe illegal trafficking online significantly by 80% by the year 2020. Furthermore, it has a goal to raise a charity fund of $1 billion by 2020; it reached a value of $84 million in 2017, and the aggregate has been more than $810 million. Apart from these, eBay also supports budding entrepreneurs, thereby impacting more than 250,000 lives at the global level.

7. A Promising Growth Trend

eBay has emerged to be a top-notch multinational e-commerce company. It has enabled its users to sell almost anything and everything. Therefore, it can easily be said that it has seen a significant spurt in the number of its users over the years. By the first quarter of the year 2018, it had more than 175 million active buyers across the globe. Most of its revenue is generated through marketplace transactions. A bulk of its revenue is generated in the USA, followed by the United Kingdon and Germany. eBay is also the most-visited e-marketplace in the USA.

8. eBay University

Apart from being one of the finest e-marketplaces, eBay has also ventured into the field of education to carve their users into master-sellers. The users can learn advanced learning strategies and good practices to master the concept of e-commerce. It enables the budding entrepreneurs to take their business to the next level. The eBay users can also enrol in a course to get equipped with advanced features of the ‘Seller’s Assistant Pro.’ The programmers can create tools with the help of custom software, and hence, give a boost to their trade, and also, save out on their time.

Image Sources

• static.feber.se
• ebayinc.com
• channelweb.co.uk
• image.slidesharecdn.com
• saleshacker.com
• beta.techcrunch.com
• statista.com

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• Product workshops

C2C e-commerce

• How C2C e-commerce works 
• Advantages of C2C E-commerce
• Most popular C2C platforms
• Advantages of C2C over B2B
• Challenges in C2C e-commerce
• How to succeed in C2C e-commerce
• The future of C2C e-commerce

Customer-to-customer (C2C) e-commerce is a business model where customers can trade with each other online . Two applications of C2C markets are public auctions and categorized promotions. C2C marketing got popular with the arrival of businesses such as eBay , Etsy , Facebook Marketplace , and Craigslist . 

Today, C2C e-commerce has become a significant contributor to the growth of the e-commerce industry. While the concept of C2C e-commerce has been around for a long time, it has evolved significantly with the growth of online shopping.

How C2C e-commerce works  #

C2C represents a market where one client buys items from another customer using a third-party platform to manage the transaction. C2C business is a business model that came with e-commerce innovation and the sharing economic climate. 

C2C e-commerce operates through online platforms that allow individuals to buy and sell goods or services with each other. These platforms enable sellers to list their items or services while buyers can browse and buy. Payment is often processed through the platform, which may take a commission or fee to facilitate the transaction. 

Trust is vital in C2C e-commerce. Buyers and sellers must rely on each other to fulfill their obligations and ensure a smooth transaction. As a result, many platforms offer features to promote transparency and build trust , such as identity verification, dispute resolution, and customer support.

Customers take advantage of competitors for items and locate things that are hard to find elsewhere. Margins can be higher than usual for sellers because there are marginal prices due to the lack of stores or wholesalers.

Advantages of C2C E-commerce #

C2C e-commerce offers many advantages for both buyers and sellers. One of the main benefits is increased accessibility to a broader audience . With the rise of online shopping, individuals can buy and sell goods or services with people worldwide. That opened up new markets and opportunities. 

Another advantage of C2C e-commerce is lower costs. Compared to traditional stores or other forms of e-commerce, C2C e-commerce often has lower overhead costs . This can translate into lower prices for buyers and higher profits for sellers. 

C2C e-commerce is known for its ease of use and convenience. Buyers can browse and purchase items from their homes, while sellers can manage their listings and transactions from anywhere.  

Most popular C2C platforms #

Several popular C2C e-commerce platforms have become household names in recent years. 

One of the most well-known is eBay, which launched in 1995 and became one of the pioneers of online marketplaces. eBay allows individuals to buy and sell anything from electronics to collectibles.

Craigslist is an excellent example of a C2C business. Craigslist is an e-commerce system that links people to advertising items or services. Craigslist is more than a platform for purchasing, marketing, and trading items. The platform posts monthly classified advertisements, such as employment opportunities and property listings. This system calls for the vendor to supply items to the purchaser personally.

Another popular platform is Etsy, which focuses on handmade and vintage items. Etsy is a go-to destination for shoppers looking for unique and personalized items. 

Facebook Marketplace, launched in 2016, has quickly become a popular platform for C2C e-commerce due to its broad user base and easy integration with Facebook. It allows individuals to buy and sell items within their local community, making it a convenient option for those looking to avoid shipping costs or connect with nearby sellers.

C2C e-commerce vs. B2B e-commerce #

While C2C e-commerce focuses on transactions between individuals , B2B e-commerce refers to the buying and selling goods or services between businesses. 

C2C e-commerce involves small-scale transactions and individual sellers. B2B e-commerce typically involves larger volumes of goods or services and business-to-business relationships. 

C2C and B2B e-commerce share some similarities, such as the use of online platforms and the ability to reach wider audiences. There are also several key differences. 

B2B e-commerce often involves longer sales cycles, more complex transactions, and specialized requirements such as bulk ordering or customization. That’s why B2B e-commerce platforms may offer different features and tools than C2C e-commerce platforms. For example, integration with enterprise resource planning (ERP) systems or advanced analytics and reporting.

Advantages of C2C over B2B #

C2C e-commerce websites have numerous advantages over B2B models. A C2C service: 

Require no supply: Because a C2C system is just the intermediary taking a cut of the C2C transaction, supply is a non-issue. This stays clear of locking up capital in supply and removing the requirement for storage and delivery centers, and it likewise gets rid of delivery expenses connected with B2B. 

Demand fewer personnel: A business without supply requires no packers, carriers, or drivers. 

Produces vendors out of purchasers: Customers who become knowledgeable about a website as a buying platform may recognize it as a legitimate place to become a vendor. 

Challenges in C2C e-commerce #

While C2C e-commerce has many benefits, it also faces several challenges. 

One of the main challenges is trust issues between buyers and sellers . Unlike traditional stores or B2C e-commerce, C2C e-commerce transactions rely heavily on trust and reputation. Buyers and sellers usually don’t have any previous relationship or communication, making it difficult to establish trust. This can lead to issues such as non-payment, delivery of faulty goods, or even fraud. 

Another challenge is fraudulent activities. C2C e-commerce platforms are often targeted by scammers and fraudsters trying to exploit buyers and sellers. This can include fake listings, phishing scams, or other fraudulent activities. 

There is often a need for more quality control in C2C e-commerce. Unlike B2B or B2C e-commerce, C2C e-commerce often does not have quality control measures to ensure that goods or services meet specific standards. This can result in misrepresenting goods, lack of transparency, or even safety concerns.

How to succeed in C2C e-commerce #

Success in C2C e-commerce requires a combination of good business practices and effective marketing techniques. One essential tip is to build a positive reputation through customer service and communication. Sellers can establish a good reputation by responding friendly to customer inquiries, resolving disputes quickly, and delivering high-quality products or services.

Another important tip is to use social media and other marketing techniques to increase visibility . By creating a solid brand identity, engaging with customers through social media, and using search engine optimization (SEO) and other marketing tools, sellers can reach a wider audience and drive traffic to their listings. 

It’s essential to be honest and transparent in product descriptions and pricing. Buyers are more likely to trust sellers who provide accurate and detailed information about their products or services and are upfront about pricing and any extra fees.

The future of C2C e-commerce #

The future of C2C e-commerce is exciting. Many current trends are pointing toward continued growth and innovation. 

One major trend is the rise of mobile commerce, with more and more buyers and sellers using mobile devices to engage customers.

Another trend is the increasing importance of social media in C2C e-commerce. Platforms like Instagram and Tik Tok are emerging as powerful product discovery and promotion tools. 

Emerging technologies such as artificial intelligence (AI) and blockchain will majorly impact C2C e-commerce. AI-powered chatbots and personalization tools could improve customer experience and increase sales. Blockchain technology could enhance security and transparency in transactions. 

Currently, there is a focus on sustainability and ethical practices in C2C e-commerce, with buyers and sellers seeking eco-friendly and socially responsible products and techniques.

Customer-to-customer (C2C) e-commerce has become popular with the growth of online shopping. C2C e-commerce operates through online platforms that allow individuals to buy and sell goods or services directly with each other. 

Trust is essential, and many platforms offer features to build trust, such as identity verification, dispute resolution, and customer support. 

C2C e-commerce offers several advantages for buyers and sellers, including increased accessibility to a broader audience, lower costs, and convenience. 

eBay, Craigslist, Etsy, and Facebook Marketplace are some popular C2C e-commerce platforms.

Do you want to learn more about e-commerce? Continue reading about → The psychology behind online shopping.

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