Global trade has always been influenced by technology and digitization, and by extension, so have the business models that underpin it. There has arguably been none more digitized and enabled than Consumer-to-Consumer (C2C) e-commerce, which has made waves in the business world to the point where the process of buying, selling, trading and interacting online is now so tech-led.

For U.S. companies engaged in global expansion and cross-border trade, understanding the evolution of this marketplace is worth your time. While there are undoubtedly considerations ahead, the potential benefits of diversifying and enhancing supply chain resilience and market entry strategies can be lucrative and enriching.

With that in mind, let’s explore C2C e-commerce at a glance and what the future looks like.

C2C e-commerce is a business model that’s transforming traditional business-to-consumer (B2C) exchanges that tend to dominate most online marketplaces. Under a C2C model, direct transactions between individual consumers take place, allowing people to buy and sell goods or services directly to one another via online marketplaces. Unlike B2C or B2B (business-to-business) models that U.S. trade professionals are often familiar with, C2C takes influence from sites like eBay and Craigslist and creates a peer-to-peer economy where consumers assume the roles of both buyer and seller.

C2C encompasses various types of transactions, from auction sales to fixed-price product listings. Contrary to popular belief, C2C carries the misconception that it only exists during the exchange of pre-owned or second-hand goods, and while this is common, it’s not exclusive. For international trade professionals, C2C platforms represent a diversifying and expanding channel where individuals can access global markets without as many barriers or ‘red tape’ as setting up a formal business enterprise or entity, not to mention the obstacle of navigating complex regulations and guidelines associated with mass exports.

C2C e-commerce has witnessed astounding growth in the last several years, and the statistics tell a compelling story.

The global C2C e-commerce market, valued at approximately $1.6 billion in 2023, is projected to reach $11.2 billion by 2032, representing a compound annual growth rate (CAGR) of 23.6%, according to Polaris Market Research. This growth is particularly noticeable in cross-border transactions, where individual sellers utilize established platforms to reach a wealth of international buyers.

Several factors have driven this expansion, notably the increase in collective consciousness around sustainability and environmental responsibility, which has fueled the demand for buying used goods in favor of newer models. Platforms have recognized this trend and adapted their services to accommodate the exchange of pre-owned goods, or incorporated buy-back schemes where tech can be responsibly repurposed or recycled. 

Furthermore, economic pressures have motivated consumers and businesses to monetize unused or obsolete assets in the manufacture of new products, rather than compound the growing e-waste problem. This was particularly overt during the COVID-19 pandemic, as enforced lockdowns pushed more individuals to sell online as a means of alternative or secondary income as their sectors slowly rebuilt.

Numerous C2C platforms have evolved into groundbreaking marketplaces that rival traditional B2C channels. eBay was the first major business to dominate the space, processing revenue of $18.8 billion annually with approximately 50% of transactions occurring across borders, when comparing net venue each quarter versus the same quarter in the year prior. 

Etsy has also become a household name in the market for selling handmade goods, though reported sales dropped 8% in the first quarter of 2025, with active buyer numbers decreasing. International exchanges through Etsy are subject to VAT and import duties, and rising e-commerce tariffs between the U.S., EU and China are increasing costs for sellers shipping overseas. Etsy does, however, own Depop and Reverb, buying the brands for $1.6 billion and $275 million, respectively, both of which generated $788 million and $917 million in GMS in 2024.

Digital cameras and video equipment are products also finding themselves widely involved in C2C exchanges, with MPB being a particular success story. It has been recently recognized as one of Europe’s fastest-growing companies in the Financial Times FT1000 list for 2024, marking their fourth consecutive year in this list. As the largest platform for buying, selling, and trading used cameras worldwide, MPB has become a pioneer in circular practices, recirculating 570,000 individual cameras and video equipment items per year. 

Similarly, StockX has also revolutionized the resale of streetwear and sneakers among consumers, achieving a $3.8 billion valuation (October 2022) and occupying 19% of the global sneakers market as of 2020.

C2C platforms offer advantages that correlate with current international trade trends. Not only are average transaction costs lower in C2C exchanges than in traditional B2C models, given the elimination of intermediaries, but this cost efficiency also empowers individuals to participate in global trade without as many upfront investments in infrastructure, inventory or distribution channels. 

The inherent flexibility of C2C enables rapid market testing across regions, with sellers able to gauge international demand without committing to large-scale export operations or logistics. This can be enticing to U.S. companies exploring how to enter markets in emerging economies, where C2C platforms often provide more accessible entry points. What’s more, C2C platforms often excel in niche markets where traditional retail channels may be inefficient, such as markets for handmade products, regional exports, discontinued items or similar commodities. This creates an opportunity for alternative sourcing and creating more circular supply chains.

Whilst the growth prospects of C2C look promising, e-commerce under this model has the obstacles of quality control inconsistencies. Individual sellers may lack processes or procedures that characterize formal quality control, verification and accreditation of which is a huge plus for consumers buying from businesses. There are also underlying concerns about trust and security, particularly in international transactions where financial exchanges must be controlled and encrypted. 

Regulatory compliance varies across platforms and countries, representing a possible complication for U.S. enterprises considering C2C as part of their expansion plans. Navigating evolving standards can be difficult, depending on the complexities of the economies they are entering. 

Furthermore, intellectual property disputes and counterfeit claims may be more common in C2C orders. Platforms, as they expand, may struggle to monitor a growing number of individual sellers, meaning that entities must invest in widespread, platform-wide risk mitigation and verification strategies when facilitating such exchanges.

The future of C2C e-commerce appears increasingly sophisticated, with a handful of emerging technologies promising great but equally challenging times. Blockchain technology promises greater transparency and security, while artificial intelligence (AI) and machine learning (ML) will continue to evolve and facilitate personalized matching between parties, as well as enhance fraud detection and prevention. 

Upon immediate inspection, it’s clear to see that C2C e-commerce has promising opportunities for U.S. companies engaging in international trade, but to ignore the inherent obstacles would be naive. While it can be tempting to pursue C2C as a viable model that empowers alternative sourcing and potentially strong partnerships, it’s vital to ensure that the platform-specific dynamics, regulatory pressures, risk management challenges and scaling obstacles are understood.

No doubt that C2C commerce will continue to grow as a market and establish a stronger presence. However, it’s too early to tell whether this will replace or dominate B2C exchanges in traditional business models. That said, as the world moves towards a more circular global economy, it’s wise to assume C2C will become more talked-about in the months and years to come.