23.09.21

What Is Peer-To-Peer Marketplace?

It’s an interesting model in e-commerce. As mentioned before, it is neither a classical online store nor a place in the marketplace. So what is it? A personalized mobile app or web page created with integration into the API of B2C platforms.
Similarities and differences of working through P2P and C2C
Despite the obvious similarities, these models have cardinal differences like interaction, commission, and individual characteristics.

Similarities between P2P and C2C:
Direct communication between buyer and seller.
The assortment includes both new and used goods.
Methods for serving advertisements.
Working with several categories simultaneously.
Large customer base.
No intermediaries.
Differences:
C2C works in a two-sided format, i.e., any user can buy and sell, and P2P implies only a seller and a buyer without the possibility of changing roles.
C2C is most often a marketplace, whereas P2P can be hosted on a personalized page based on the marketplace API.
P2P is aimed at small manufacturers of niche goods, while C2C is mainly an analog of an auction with predominantly used goods.
How does it work?
The P2P model works great with a ready-made marketplace customer base. The software redirects the target audience to the product page, i.e., to a personalized website. This model was created for direct contact with customers. It is profitable to work without intermediaries because managers and consultants require resources to pay, but these costs may be avoided with P2P. This model is ideal for artists, sculptors, and other creative people. With its help, they can sell their creations without any problems and with a minimum chargeable percentage of each sale.

Thanks to the basic tools of most marketplaces, to create your page, you just need to choose a template and redesign it to suit your style. On some sites, additional paid modules provide the interactivity of the content and attract the target audience from the main resource.
Economic Benefits of Working on P2P marketplace
Creating your website, renting a server or additional storage, and regular maintenance cost a lot of money. Add here hired marketers for promotion and sales managers, and as a result, we will get a solution that won’t pay off. These costs are a trifle for large firms, but for a beginner merchant who just wants to monetize a hobby, it is too expensive.

P2P apps and pages are the perfect solutions in this case. The minimum development cost, ease of design, and native management of the finished product are features that favorably distinguish P2P sites from the entire variety of marketplaces. Minimum sales tax and ready-made customer base reduce advertising expenses to zero. The main part of the budget here is aimed at the quality of the published content: professional photos and selling descriptions.
Who benefits from P2P marketplace?
As stated before, this model is relatively new and highly specialized. The main category of merchants on such sites is people of art or narrowly profiled niche experts who value personal communication with consumers. Since P2P excludes the manager from the chain of relations, it positively affects the balance of funds in the pocket after the organization of the trading place and the first sales.

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