In the operation mode of e-commerce, the C2C model has gradually shown strong development potential due to its strong user participation, flexibility and convenience. In 1999, Shao Yibo founded Eachnet, the first C2C website in China. Let’s take a look at the characteristics of C2C websites today.
What is C2C e-commerce platform?
C2C is to provide an online trading platform for buyers and sellers through e-commerce websites, so that sellers can post information about items for sale and buyers can choose to purchase from them. At the same time, in order to facilitate transactions between buyers and sellers, a series of supporting services required for transactions are provided. Such as: coordinating the collection of market information, establishing a credit rating system, and multiple payment methods.
What is the C2C profit model?
1. Membership Fees
Membership fees, also known as membership service charges, refer to the fees charged by C2C websites for providing members with a combination of services such as online store rentals, company certification, product information recommendations, etc. Since it provides an effective combination of multiple services and is more adaptable to the needs of members, the charging model is relatively stable. Fees are paid in the first year, and customers are required to renew their memberships when the second year expires. After renewal, services will be provided for the next year. Members who do not renew their memberships will revert to free memberships and will no longer enjoy multiple services.
2. Transaction Commission
Transaction commissions are always the main source of profit for C2C websites. Because C2C websites are trading platforms, they provide opportunities for both parties to the transaction, which is equivalent to exchanges and hypermarkets in real life. Collecting commissions from transactions is a reflection of its market nature.
3. Advertising Fees
Companies use valuable locations on their websites to place various types of advertisements, set prices for the advertisements based on website traffic and website population accuracy, and then sell them to customers in various forms. If the C2C website has sufficient traffic and user stickiness, the advertising business will be very large. However, out of consideration for user experience, C2C websites have not fully opened this service, and only individual advertising spaces are opened from time to time.
4. Search ranking bidding
The richness of products on C2C websites determines the frequency of buyers' search behavior. The large number of searches determines the importance of product information ranking in search results. This led to the business of bidding based on search keywords. Users can propose a price they think is appropriate for a keyword, and the highest bidder will win the bid. During the valid period, the user's product will obtain the ranking won. Only when sellers realize the potential profits that bidding can bring to them will they be willing to spend money to use it.
5. Payment fees
Payment issues have always been a bottleneck restricting the development of e-commerce. It was not until Alibaba launched Alipay that it promoted the development of online payment business to a certain extent. The buyer can first transfer the advance payment to the personal account of the payment company through online banking. After receiving the goods sent by the seller, he can notify the payment company to deposit the payment into the seller's account. In this way, the buyer does not have to worry about not receiving the goods and having to pay, and the seller does not have to worry about not receiving the payment after sending the goods. The payment company will charge a handling fee based on a certain percentage of the transaction amount.
This is the end of this issue's introduction to C2C e-commerce. If you want to get more information about C2C e-commerce, please pay attention. We will continue to answer your questions~
