5 Reasons to Build Your Own C2C Marketplace

Have you ever bought something from an individual online and found it more satisfying than ordering from a big brand? There’s something personal about that kind of exchange, like you're part of a conversation, not just a transaction.

That’s the appeal of consumer-to-consumer (C2C) marketplaces: they’re built around people, trust, and real-life value, not corporate layers.

And here’s the interesting part: platforms like these give regular people a way to earn money, test business ideas, or simply share what they have with others, all without needing to open a store or invest heavily. For marketplace founders, that means you’re not just starting a business, you’re building something that gives others a chance to do the same.

So why is building a C2C platform a smart idea today? In this article, we’ll look at five solid reasons why this model continues to gain traction, and why it might be the right path for your next venture.

C2C, B2C, or B2B? Understanding the key marketplace models

A marketplace platform is often the first thought that comes to mind when a user wants to buy something online.

Let’s first deal with the concept of the marketplace platform. It is a digital trading platform where various third parties provide their services or products. A consumer-to-consumer (C2C) marketplace platform is a business model where customers can trade with each other.

A C2C marketplace serves as an intermediary, matching one client to another. There are no intermediaries involved. The important thing is that one person can be a consumer, but they can later switch their role and start selling products.

The C2C marketplace platform is distinguished by the equality of participants as individuals. If one of the parties wishes to purchase any product or service, it agrees on favorable terms with the other. So, the needs of both the seller and the shopper are fully satisfied.

Here are several C2C marketplace examples. eBay, with 134 million active users, is a popular C2C platform. A leading carpooling marketplace, BlaBlaCar is the same marketplace type. A popular selling platform of Alibaba Group, Taobao, also belongs to the C2C sector.

Now, let’s briefly consider the major differences between C2C and other types of marketplace business models. There are also B2C (business-to-consumer) and B2B (business-to-business) models. Examples of the B2B business model are the Alibaba.com website and Walmart. The B2C business model is the Uber marketplace platform.

The table below helps you get an image of the aims of C2C, B2C, and B2B marketplace types.

To figure out how to start a C2C marketplace, define the type of your future platform: vertical or horizontal. Which will suit you best? Let’s find out by comparing marketplace types.

Read also: How to Create an Online Service Marketplace: Ultimate Guide

So, what is the difference between horizontal and vertical marketplace software models?

Vertical C2C marketplace platform

This type of marketplace platform covers a particular category of products or services. Therefore, such websites have a narrow client base.

A vertical model enables you to provide users with a more personalized customer experience than a horizontal one. That’s because targeting a specific niche is more accessible than covering various audiences’ interests. Also, you can be a leading C2C marketplace platform in your domain. Yet, you might consider scaling your C2C marketplace to grow sales with a broader audience outreach over time.

Etsy is probably the most famous C2C marketplace example that follows the vertical type. Focusing on a niche of handmade and vintage items, the company provides an easy-to-use platform for craftsmen and their buyers.

Source: Etsy

One more example is Preply, a marketplace platform for online tutoring. You can find tutors for a range of subjects, most of which are languages.

Source: Preply

Horizontal C2C marketplace platform

Unlike the vertical model, this marketplace type offers a broad spectrum of products in many categories. It's not specialized in a particular category but includes widely used and salable items.

This type of marketplace platform is attractive to a mainstream audience. However, this model can’t be leading in a specific domain.

The classic example is Amazon, which maintains its position to be one of the largest online selling companies.

Source: Amazon

Must-have functionality for the C2C marketplace platform

If you're building a C2C marketplace, solid functionality is the foundation of a great user experience. Your platform should feel intuitive, trustworthy, and seamless, not just for buyers, but for sellers too.

But before diving into the must-have features, it’s worth understanding the typical challenges C2C platforms face:

• The platform doesn’t own the products, so quality control is in the users’ hands.
• Trust must be earned, as 98% of users read reviews before making a purchase.
• Returns and cancellations are more common and can damage user satisfaction.
• User expectations are high, even if the sellers are individuals, not businesses.

Want to build of a marketplace solution?

Our experts are happy to implement your idea.

Talk to an expert

To build a C2C marketplace that people want to come back to, here’s what you’ll need:

• Account management

  Split user accounts into two types: sellers and buyers. Let them both receive email notifications, including messages, applying new settings, etc.

• Buyer-seller communication

  Let sellers and buyers communicate to reduce the order cancellation and return rate. Ensure that all communication channels can keep users within your C2C marketplace platform. It is essential to make this communication secure for both sides.

• Search and filters

  Let your marketplace platform visitors be specific about the product they seek. Create a tool that allows users to filter search results by features and pricing options.

• Ratings and feedback

  Build a product rating system that can be modified by buyers. Let them share their feedback, positive and negative. Buyers should be able to report violators of marketplace platform rules, and add them to a blacklist.

• Payment gateways

  Provide multiple payment solutions that enable transactions directly on your C2C marketplace platform. These are PayPal, Stripe, Braintree, etc. Also, it is essential to ensure the security of transactions to protect users’ data and avoid unauthorized actions. For example, provide users with pre-authorization and other secure payment mechanisms.

• Advanced product pages

  Build trust in your C2C marketplace software. A complete product description is only half of it. Each offer must be accompanied by images. Typically, US customers expect to see from 5 to 8 pictures per product.

When developing a C2C marketplace, starting the project with MVP development services is advisable. This approach involves creating a product with just enough features to satisfy early users. By focusing on the minimal marketable set of features, you can test your solution with real users early on and at a lower cost.

At Codica, we prioritize both manual and automated software testing to ensure the reliability and functionality of a C2C platform. These comprehensive quality assurance services enhance the convenience and robustness of a marketplace, providing a seamless experience for your users.

Further reading: Building a Future-Ready Marketplace with MACH Architecture

What makes C2C marketplaces worth launching

If you are thinking of building an online C2C platform but are considering if it’s feasible, take notes on the following reasons.

1. C2C marketplaces are rapidly gaining user trust and adoption

Consumer-to-consumer marketplaces have seen consistent growth as users increasingly prefer platforms that offer direct, peer-to-peer interactions. Platforms like eBay, Airbnb, and Facebook Marketplace have shown that people are willing to buy from individuals when trust, convenience, and value are present.

This model appeals to both sides:

• Sellers enjoy low entry barriers and flexible income opportunities.
• Buyers benefit from competitive prices, unique offers, and a personal buying experience.

Backed by the rise of mobile commerce and integrated social features, C2C platforms now dominate categories from second-hand goods to rentals and services, and user adoption continues to rise globally.

2. Scalable C2C business model

C2C marketplaces grow organically by connecting buyers and sellers, without the need to hold inventory, manage logistics, or hire large teams. As the user base expands, so does platform value, more sellers attract more buyers, and vice versa.

Successful platforms like Airbnb and Etsy started with minimal resources and scaled by focusing on user experience and trust-building tools. Growth doesn’t rely on large capital investment but on network effects and strategic feature expansion.

This makes the C2C model ideal for lean startups aiming to enter the market quickly and grow sustainably.

3. Easy management

One of the biggest perks of running a C2C marketplace? You’re not managing products, just the platform. There’s no inventory to store, no packaging to handle, and no logistics to coordinate. That means lower startup costs and far less daily overhead than a traditional ecommerce business.

You also don’t need a big team. With smart automation and built-in user tools, your marketplace can grow without needing dozens of employees.

What about traffic? C2C platforms naturally attract users. Reviews, wishlists, and word-of-mouth recommendations help build trust and visibility. Add in social media sharing, which platforms like Facebook and Instagram practically do for you, and you’ve got built-in, low-cost promotion.

In short: you focus on creating a smooth experience, and your users help drive the rest.

4. Variety of revenue models

As a marketplace owner, you must ensure your business's long-term viability when you create a C2C marketplace app or website.

Here are several ways a C2C platform can generate revenue:

• Subscriptions. Let the sellers select the plan type in exchange for upgrades. VIP subscribers may use advanced reports, customizable selling tools, storefronts, and more (e.g., Amazon). This usually requires a monthly payment.
• Commissions. Applying this revenue approach makes sellers pay fees only when selling an item or a service (e.g., Shopify & Airbnb). It is one of the most reasonable monetization models for C2C marketplace software.
• Listing fee. You charge vendors for listing products on the C2C marketplace platform (e.g., Etsy). This model certainly has pros and cons. If your marketplace business is launched recently, it certainly can push away potential users.
• Featured listings. Sellers occasionally need to increase their chances of a speedy sale. Featured listings exist so vendors can place their offers highly on the searches (e.g., Craigslist and OLX). It is primarily a good revenue model if your marketplace provides a free service for sellers.
• Advertising. Ads can be viewed as a secondary option to diversify your monetization model. An uncontrolled amount of advertising, however, will scare off multiple users. The best way here is to make these ads limited and personalized (e.g., Rakuten, Facebook Marketplace).

Normally, the C2C platform gets revenue from commissions charged for each sold item. A helpful tip for you is that such an approach can work well in the platform's early existence. A successful C2C marketplace combine multiple business models to achieve the highest revenue possible.

Learn more: 10 Best Monetization Practices to Build a Successful Online Marketplace

5. Quick transaction means quick revenue

A C2C advantage, which is to streamline the customer journey and provide transactions quickly, is also appealing. Let’s see what helps smooth this journey and accelerate the buying process in the C2C marketplace.

• Best price satisfaction

  Having multiple sellers and the ability to compare and negotiate a price is essential. This leads to the “best value for money” effect. Thus, on average, C2C sites offer comparatively cheaper products.

• Quick visitor-to-customer conversion

  The C2C marketplace has a wide range of visitors regardless of where they are. So, the chances of converting more of them into customers are higher, especially compared to those physically walking into a mall to browse.

• Less user data required

  As we pointed out earlier, there are no middlemen. The listing process takes only a few steps. Often, online transactions require some financial information. This, however, is not always implied within C2C payment operations.

Overall, it is all about customer empowerment and understanding the motives around their behavior. Let us bring some winning tips that will boost sales in your C2C marketplace:

• Convenience in use

  Searching for and buying goods should be convenient for users. This is the reason behind the simple design of multiple feature-rich C2C websites, including the Amazon marketplace. Also, making a shopping cart accessible from any page on your site will greatly save customers time.

• Personalized discounts

  Everyone appreciates a good deal on their favorite products. Research indicates that companies implementing personalization obtain over 40% more revenue than others.

• Bundles

  Many of us are familiar with such a tactic. You can show a user what product might be tied alongside those already kept in the shopping cart (e.g., monitor + cable organizer).

• Payment gateways

  Using a convenient and quick payment processing solution is beneficial when creating a C2C marketplace app or website. The right choice of payment solution assists you in controlling payments inside your platform quickly and easily. Read the article below to help you choose the best solution for your C2C marketplace.

Further reading: How Much Does it Cost to Build an Online Marketplace in 2025?

High-potential niches for your C2C marketplace

Choosing the right niche is one of the most important early steps when launching a C2C platform. Starting with a focused segment not only helps you validate your idea faster but also attracts a more engaged, targeted audience.

Here are some of the most promising directions where C2C models are already thriving:

Gig & freelance services

Platforms like Upwork and Fiverr show how individuals can easily sell services, from copywriting and design to development and virtual assistance. These C2C models give freelancers visibility and buyers flexibility without the need for agencies.

Second-hand goods

Resale platforms such as Craigslist, eBay, and Facebook Marketplace have transformed how we buy and sell used items. From furniture and electronics to clothing and collectibles, second-hand marketplaces offer great value for buyers, and easy income for sellers, while supporting more sustainable consumption.

Arts, crafts & handmade products

Creative communities thrive on platforms like Etsy and LoveCrafts, where artisans and hobbyists sell handmade, unique, and one-of-a-kind items. Buyers come for quality and originality, not mass production.

Groceries & everyday essentials

Marketplaces like Instacart, Shipt, and AmazonFresh enable peer-based delivery of food and household products. While these aren’t pure C2C in structure, the concept of individuals fulfilling local delivery or resale roles aligns with C2C dynamics, especially in local community-based shopping models.

C2C marketplace development approach

When you decide to launch your C2C business, you can go one of two ways. You can develop a C2C marketplace platform from scratch or choose a “boxed” service with a standard set of features.

Each option of C2C marketplace software creation has its pros and cons. To make the right choice, you need to analyze the goals and assess the scope of the future marketplace platform. Below, we highlight the two most applicable approaches for building C2C marketplace software.

Out-of-the-box solution

You can immediately use plenty of SaaS (software as a service) tools, including Adobe Commerce, Sharetribe, Shopify, and others.

So, using these tools, you can easily start a marketplace platform in a few days. Also, there's no need to worry about updates. Software providers maintain their products' relevance.

However, such software can miss valuable functions that may turn out to be crucial in the long run. If you pick a customizable template for C2C marketplace development, it will leave you only a little room for maneuver.

At some point, you will have to scale your business to compete effectively. So, a ready-made solution is not enough to meet each customer's needs in the future.

Custom solution

In contrast, you can build your C2C website with up-to-date and extended features. This option can be pricey, but it will meet your concerns, as it is tailored to your unique business needs.

As a result, you will get a rich-featured web application free of licensing fees with custom design. Also, the web developers have vast experience in C2C marketplace website development. So, such a team will bring domain expertise to your project. It will help you avoid common C2C marketplace development mistakes, saving time and budget.

For instance, the Codica team delivered an online service marketplace and helped the client save costs on mobile app creation. The main idea of the project was to develop an activity booking platform. Using it, busy parents should quickly and easily find activities for their kids.

We also created a progressive web app that affected the search engine rankings of the web solution.

Below is a short video that shows how this C2C marketplace software web solution works.

You may also like: What is Project Discovery Phase in Custom Software Development

How Codica can help you develop a booming C2C marketplace

At Codica, we have rich experience creating custom marketplace platforms, including C2C websites. Our delivered solutions are scalable and reliable and bring revenue to their owners.

We start the development process with product discovery. This stage helps you discover all the details about the future development, like features, tech stack, and the team. So, you get custom UI/UX design services, an optimized development process and keep your costs minimal.

A brief video below tells more about this essential web development step.

After this phase, we create a minimum viable product (MVP). It is a base version of the future website. A client can launch an MVP to the market and present it to early adopters. Thus, improving the web solution upon the gathered feedback is possible.

Based on 8+ years of experience in the software market, Codica’s specialists develop web products that prove their efficiency. For one of our clients, we have delivered a multi-vendor marketplace platform for the automotive domain. The solution allows customers and merchants to communicate and seamlessly conduct payment operations within the platform.

At first, we created a marketplace MVP that assisted our client in raising investments. After that, we transformed the solution into a high-performing multi-vendor marketplace development platform.

Also, thanks to the high loading speed we provided, the solution is well visible by search engine mechanisms. So, it affected the number of website visitors.

Below, you can see how this C2C marketplace platform works in practice.

Since you’re here

A core idea of a C2C marketplace platform isn't about the volume of different payment operations made on the web. Initially, it's about forming сlose ties with existing users. On top of that, an ability to reach a large audience remains.

On average, the C2C website offers comparatively cheaper products. However, since a third party brings together vendors and customers, its reputation is crucial.

Thus, C2C marketplace development takes careful planning. To keep your business afloat, your site features must differ from what you see day-to-day. Fortunately, the Codica team has a proven record in delivering online marketplace development services. If you need help with quality marketplace development, feel free to contact us. We are eager to discuss your project and give you a free quote.