Customer to customer

Origins

There are many different classifications of marketing. From Government to Business (G2B), Business to Business (B2B), Business to Consumer (B2C), to Customer to Customer (C2C). While many companies operate in one or more of these areas, Customer to Customer marketing has become more popular with the advent of the internet. Companies such as Craigslist , eBayCustomer Support and Customer Service. More, as it becomes more economical for individuals to network through the social networks and individual content creation, this marketing model has been greatly enhanced by businesses and individuals. ^[4]

There are two implementations of customer to customer markets that are credited with its origin. These are classifieds and auctions. ^[5]

Newspapers and other similar publications were in common circulation and were likely to be used to facilitate a common need. Some people wanted things, other people had things and wanted to sell them. This was the birth of classifieds . The advertisement advertisement Normally used in text based print, classified advertisement. In 2003 US classifieds market totaled $ 30.00 billion for both newspapers and online classified ad services.

The oldest auction house is Stockholm Auction House (Stockholms Auktionsverk), which was established in Sweden in 1674. Auctions however, have been recorded as far back as 500 BC Deriving from the Latin word aug? Re, which means to “increase” (or ‘ increased ‘). ” ^[6] Auctions have been widely used in a method of liquidating assets, and has had many different variations. The most successful form of auctions is based on the internet, such as eBay.

Business model

Most C2C websites, such as eBay, have both streamlined and globalized traditional person-to-person trading, which have been run as sales, collectibles shows, flea markets and more, with their web interface. This facilitates easy exploration for buyers and sellers. ^[7]

When an item is listed on C2C site, a nonrefundable insertion fee is based on the seller’s bid on the item. Once the auction is completed, the final value fee is charged. This rate ranges from 1.25 percent to 5 percent of the final sale price. ^[8]

After the C2C site can be completed, can be completed, transactions can be completed, the C2C site stays in the background. For instance, the C2C site notifies the buyer via e-mail that he or she has won. The C2C site also emails the seller to report who won and at what price the auction finished. At that point it’s up to the seller and buyer to finish the transaction independently of the C2C site.

C2C sites make money by charging fees to sellers. Although it ‘s free to shop and place bids, sells place to list items for sale, add on promotional features, and successfully complete transactions. ^[9]

Many C2C sites have been expanded by the introduction of specific categories of billboards and chat rooms, the integration of content and advertising. eBay specifically has also broadened the range of services, including payment services, shipping services, authentication, appraisal, vehicle inspection and escrow services.

Specialty marketplaces have been added to the market. For example, eBay Motors serves the automotive marketplace, including vehicles, parts and accessories; and Half.com (now closed) was focused on providing a fixed-price trading environment, initially for music books, videos and video games. ^[10]

Many online auction sites use a system called PayPal for sellers to receive online payments securely and quickly. A traditional credit card is not required to use this site because PayPal can be linked to your bank account. ^[11]

There are various platforms such as consumer-to-consumer e-commerce, social media (eg Facebook), advertisement websites (eg Craigslist) and online auction sites (eg eBay). ^[12]

Product or service

Consumer to consumer transactions often involve the sale of products. As such, the products and services are usually varied and have a short development and dirty cycle. Products can often be used as a second-hand product, since they are often sold through the internet. ^[13]

Development

Since they are usually second-hand products, they are often used for long-term growth and are marketed via this method. However, in the case of individuals who are looking for a product or service they are developed on the small-scale, there is a product development life cycle. However, even when a product goes through a development life cycle when marketed in this manner, seldom does traditional marketing research occur. Oftentimes individuals are looking to make a quick profit, and simply place their product in the market place in hopes that it will be sold.

Communications

Advertising

Advertising is essential towards the success of any business. In the case of customer to customer marketing, advertising refers to online auctions and listings. As opposed to the pricey costs to advertise in media such as newspapers and magazines, products are already being promoted and publicized by users. Potential buyers will become aware of products or services by conducting searches on the websites. Aside from possible fees and commissions imposed by the auction or listing site, advertising in this market does not require a substantial amount of money.

Advantages

Customer to Customer Marketing has become very popular in the recent years. Customers can directly contact sellers and eliminate the middle man. Moreover, anyone can now sell and advertise a product in the convenience of one’s home – enabling one to start a business. Therefore, a wide variety of products can be found on eBay such as eBay, including second-hand goods. Since the majority of these sales occur over the internet, sellers can reach both national and international customers and increase their market. Feedback on the product is available to customers and potential customers. The actual buying and searching process is simplified, and the costs are reduced. Moreover,

Disadvantages

Although online auctions are allowed to display their products, there is often a fee associated with such exhibitions. Other times, websites may charge a commission when products are sold. ^[14] With the growing use of online auctions, the number of internet-related auction frauds have also increased. For instance, a seller may create two accounts on an auction site. When an interested buyer bids for an item, the seller will increase the price. Therefore, many users have purchased products at unnecessarily inflated prices. ^[15]

Identity theft has become a rising issue. Scam artists often create sites with popular domain names such as “ebay” in order to attract unknowing eBay customers. These sites will include credit card numbers. Numerous cases have been documented in which they can be found on their credit card. Unfortunately, websites often have a liability claiming that they are not responsible for any losses or damages. Furthermore, it has been found that it is illegal. Anything from illegal drugs, pirated works, prayers, and even sex have appeared on such sites. Most of these items are blacklisted, some still find their way onto the internet.

Examples

E-Commerce

Internet auctions

Despite the success of eBay, many other online sites have similar websites. Creating an innovative and efficient business model is vital towards success. C2C, B2C, B2B, B2G, and G2P Online auctions can be categorized. C2C refers to business to customer, B2C refers to business to customer, B2B refers to business to business, B2G refers to business to government, and G2 refers to government to public. In recent years, online auctions have even appealed to major businesses. For instance, Sears has reported selling items at higher prices on these auctions when compared to discounting them in stores. ^[16]

The success of an online auction site largely depends on six variables: interactivity, product offering, level of trust, rate of growth and adoption, networking, level of commitment, and payment options. Interactions among users are crucial and thus, websites must be accessible and easily navigable. E-mails, community boards, and feedback all help in increasing interactivity. With the growing need for convenience, the variety of products can be greatly increased to the customer basis. Especially with the growing number of online frauds, trust is essential in auction sites. They must be assured that their personal information will remain secure and that they will receive a prompt payment. With the fast-paced advancements in technology, auction sites must respond to these changes by staying updated. Moreover, sites also need to constantly search for business opportunities in order to expand their market. A wide network of users is also crucial. Having an array of different sellers, buyers, suppliers, and delivery agents would increase the number of users, which would also raise the level of interactivity. In addition, forming alliances with different partners will also help in the site’s success. The level of commitment in buyers and sellers also plays a role in the auction’s success. Similar to the level of trust, they must be assured that they are receiving their purchase item, and they must actually receive payment. Although most preferential speedy online transactions, it will be beneficial to offer different options. Moreover, sites also need to constantly search for business opportunities in order to expand their market. A wide network of users is also crucial. Having an array of different sellers, buyers, suppliers, and delivery agents would increase the number of users, which would also raise the level of interactivity. In addition, forming alliances with different partners will also help in the site’s success. The level of commitment in buyers and sellers also plays a role in the auction’s success. Similar to the level of trust, they must be assured that they are receiving their purchase item, and they must actually receive payment. Although most preferential speedy online transactions, it will be beneficial to offer different options. Moreover, sites also need to constantly search for business opportunities in order to expand their market. A wide network of users is also crucial. Having an array of different sellers, buyers, suppliers, and delivery agents would increase the number of users, which would also raise the level of interactivity. In addition, forming alliances with different partners will also help in the site’s success. The level of commitment in buyers and sellers also plays a role in the auction’s success. Similar to the level of trust, they must be assured that they are receiving their purchase item, and they must actually receive payment. Although most preferential speedy online transactions, it will be beneficial to offer different options. sites also need to constantly search for business opportunities in order to expand their market. A wide network of users is also crucial. Having an array of different sellers, buyers, suppliers, and delivery agents would increase the number of users, which would also raise the level of interactivity. In addition, forming alliances with different partners will also help in the site’s success. The level of commitment in buyers and sellers also plays a role in the auction’s success. Similar to the level of trust, they must be assured that they are receiving their purchase item, and they must actually receive payment. Although most preferential speedy online transactions, it will be beneficial to offer different options. sites also need to constantly search for business opportunities in order to expand their market. A wide network of users is also crucial. Having an array of different sellers, buyers, suppliers, and delivery agents would increase the number of users, which would also raise the level of interactivity. In addition, forming alliances with different partners will also help in the site’s success. The level of commitment in buyers and sellers also plays a role in the auction’s success. Similar to the level of trust, they must be assured that they are receiving their purchase item, and they must actually receive payment. Although most preferential speedy online transactions, it will be beneficial to offer different options. Having an array of different sellers, buyers, suppliers, and delivery agents would increase the number of users, which would also raise the level of interactivity. In addition, forming alliances with different partners will also help in the site’s success. The level of commitment in buyers and sellers also plays a role in the auction’s success. Similar to the level of trust, they must be assured that they are receiving their purchase item, and they must actually receive payment. Although most preferential speedy online transactions, it will be beneficial to offer different options. Having an array of different sellers, buyers, suppliers, and delivery agents would increase the number of users, which would also raise the level of interactivity. In addition, forming alliances with different partners will also help in the site’s success. The level of commitment in buyers and sellers also plays a role in the auction’s success. Similar to the level of trust, they must be assured that they are receiving their purchase item, and they must actually receive payment. Although most preferential speedy online transactions, it will be beneficial to offer different options. s success. The level of commitment in buyers and sellers also plays a role in the auction’s success. Similar to the level of trust, they must be assured that they are receiving their purchase item, and they must actually receive payment. Although most preferential speedy online transactions, it will be beneficial to offer different options. s success. The level of commitment in buyers and sellers also plays a role in the auction’s success. Similar to the level of trust, they must be assured that they are receiving their purchase item, and they must actually receive payment. Although most preferential speedy online transactions, it will be beneficial to offer different options.^[17]

Internet classifieds

Internet classifieds are another example of customer to customer marketing. An example of an internet classified company, is Craigslist. Craigslist utilizes the internet to attract a wide customer and buyer base which employs the website to list and sell items.

Since the customer to customer marketing strategy is strongly focused on serving the customer, the business model of Craigslist is simple: serve the customer first. Utilizing this model, Craigslist has developed into a prime example of a customer driven customer machine, which focuses on the customer selling to the customer.

What support is the company being derived from, while maintaining the model and convenience of the site. In fact, Craigslist makes no money off the customer to customer interactions that occur on the classifieds of the website. All of their revenues are derived from the business line of businesses. Thus, in other words, their revenue is derived from their business to a new customer. ^[18]

As such, it is becoming more and more specific that they are specifically focused on this particular model, whether or not they are not focused on profit; but rather, on delivery of the service or product to ensure customer to customer interaction. ^[19]

Internet classified sites such as OLX, Quikr, Loogga etc. are gaining prominence in emerging economies such as India, Brazil and Nigeria. OLX and Quikr recently enabled their users to sell and buffaloes in rural India ^[20]

Marketing

C2C marketing is of critical importance to retailers. When a shopper buys a product, if it can be shared with the shopper’s friends, that drives significant traffic back to the customer site. Additionally, shoppers trust user generated recommendations much more than recommendations pushed by the retailer. Retailers like CafePress has implemented C2C marketing on their website and companies like ShopSocially are building C2C marketing platforms for retailers. Recent trends by Facebook and Wavespot that leverage free WIFI at a local business are indicative of C2C marketing ‘s importance in SMB space.

Most companies think of social media channels like Facebook and Twitter. However, in many cases, the message tends to be business to consumer.

See also

• Sharing economy

References