C2c Third-party E-commerce Platform Business Model Research

C2C (Consumer to Consumer) is a e-commerce mode which fully represent the essence and advantages of the Internet. Tremendous amount of purchasers and sellers who are in various locations and different time are engaged by the platform to drive transactions. The C2C third-party business platform creates opportunities for small businesses to reduce cost, enhance efficiency, expand market share, improve service quality and preserve competitive advantage. So the study of the business mode of C2C third-party business platform not only contribute to the development of the e-commerce platform, but also bail out the large quantities of small businesses among the fierce competition and even economic downturn.The article probed into the business mode of Taobao, which is an industry leader in China, with virtually as many as 85% in market share of the C2C third-party business platform. The focus is in the basic elements such as information flow, capital flow and logistics—Alipay, Alisoft, recommended logistics provider, credit rating system. This article also probed into the profit mode of Taobao in the following aspects: advertisement business. service fee of the technique platform, and commission. Finally, the article puts forward some suggestions about Taobao business and profit mode: speed up the development of mobile payment, supervise on the third-party logistics system and improve the forth-party logistics step by step, improve the present credit rating mechanism, gradually introduce the fee mechanism for Taobao & Alipay, strengthen B2C business mode and diversify the Taobao business mode to reduce operating risks. Ultimately, this article is designed to make reference to the ever developing C to C third-party e-commerce platform.