C2C model of cross-border import e-commerce: advantages and challenges coexist
The C2C model, Customer to Customer, is a form of cross-border e-commerce between individuals. This model of cross-border e-commerce platform has a large number of SKUs (stock keeping units), creating a shopping experience. Typical C2C cross-border e-commerce platforms include Taobao Global Shopping, Tao Shijie, Yangduan Cargo Scanner, Haimi, Jiemi, etc.
The rise and development of C2C model
The C2C cross-border e-commerce model, also known as the overseas purchasing model, is the original model of the imported cross-border e-commerce industry. As Chinese people’s demand for overseas goods grows, some Chinese who have lived overseas for a long time use social media to promote their products and use Taobao as a trading platform to engage in purchasing agents. Taobao opened the “Taobao Global Shopping” area specifically for this purpose in 2007. In 2015, the transaction volume of Taobao Global Shopping reached approximately 18 billion yuan, and the transaction volume of purchasing agents within the entire Taobao system far exceeded this figure.
In addition to Taobao Global Shopping, there are other C2C cross-border e-commerce platforms such as Yangquan, Meilishuo HIGO, Tao Shijie, Haimi and Jiemi, etc. Yangquan is one of the early players in the industry. It entered the field of cross-border e-commerce in 2011 and really started to develop after 2013. Meilishuo HIGO is a C2C overseas shopping project incubated internally by Meilishuo, which started in September 2014. Mogujie has also supported the C2C cross-border e-commerce platform Tao Shijie through equity investment. Haimi Global Shopping and Jiemi Global Shopping were launched in November 2014 and later the same year respectively.
Advantages and disadvantages of C2C model
The advantage of the C2C model is that it has a wide user base and the threshold for becoming a seller user is low. Buyers can purchase specialty products from all over the world through the platform. At the same time, some platforms (such as Yangquan) provide social functions such as live broadcast and fans, which help enhance user stickiness and experience. The C2C buyer-made model can promote user precipitation at the spiritual and social level and meet the needs of users who are developing toward refinement, diversification, and personalization.
However, the C2C model also has some disadvantages. Due to the poor control over the service experience and the legal and policy risks associated with personal purchasing, the conversion rate of this model is usually less than 2%. In addition, sellers and users in the C2C model are difficult to manage, competition is fierce, and product quality is uneven.
In summary, although the C2C model faces many challenges, it still attracts many consumers with its flexibility and personalized services. In the future, how to further improve user experience and ensure product quality will be the key directions that C2C cross-border e-commerce platforms need to focus on.