How to Monetize a C2C Marketplace

Photo by rupixen.com on Unsplash

Let’s discuss how to monetize a C2C marketplace by breaking down each of the points mentioned below:

Charge commissions on every transaction

If you want to make money from your C2C marketplace, then you have to charge commission on every transaction that takes place in your platform.

Make money from advertisements

In addition to charging commissions on every transaction, you can also make money from advertisements.

Charge for subscription

Another way to monetize your C2C marketplace is by charging subscription fees. Many C2C marketplaces charge subscription fees for the use of their platform. This is usually done for two reasons:

  1. To increase revenue from subscriptions. Many websites offer discounted subscriptions if they are paid upfront for a longer period of time rather than paying them month-to-month or week-to-week basis as this helps them earn more money in the long run. For example, if you charge $10 per month but offer 3 months discount if the user pays upfront, then it will be beneficial for both parties as the user will save $10 per month while you will earn $30 per month instead of $10 per month which is what you would have earned had you offered no discount at all (assuming that 10% of users would have cancelled their subscriptions). As an owner of a C2C marketplace, this gives you an option to either make money with subscriptions or earn money from advertisements or both (by selling advertisement slots).

How much money can I make with my C2C Marketplace?

Now that we know how we can monetize our C2C marketplace business model, let’s talk about how much money we can make with our C2C marketplace business model?

First Example — Ebay

As mentioned above in the article, eBay makes around $3 billion dollars per year just from advertisements alone.

Second Example — Amazon

Another example is Amazon which makes around $15 billion dollars per year in profits and charges subscription fees for the use of its platform.

Third Example — Instagram

Now let’s talk about Instagram which charges advertisement fees for every advertisement posted on its platform.

Founder of Cudy Technologies (www.cudy.co), a full-stack EdTech startup helping teachers and students teach and learn better. I am also a mentor and investor.