Research On Pricing Model Of C2C Platforms And Factors Affecting Profitability Of C2C Platforms

Although China C2C e-commerce transaction is of considerable size with large user number, platforms are still exploring an appropriate profit model. This thesis will analyze pricing model and profitability influencing factors of C2C platform from the perspective of two-sided market.Firstly, this thesis reviews current theory and research of two-sided market. Current theoretical research is lack of the pricing model integrated C2C industrial characteristics, while empirical research lacks the analysis on factors affecting the profitable of C2C platform. The innovative points of this thesis are exactly based on these shortcomings.Secondly, this thesis summarizes the two-sided market features of C2C platform. Sum up the general two-sided market characteristics and special industrial attributes. These attributes are the important prerequisites for following theoretical models.Then, combined with C2C industrial characteristics, this thesis establishes the pricing models, derives pricing formula and discusses the impacts of network externalities, reputation and search efficiency.Finally, empirical test on factors affecting the profitability of C2C platform shows that the number of active users of the platform has the greatest significant positive effect, and the costs on product development will exert a significant positive impact on the profitability of the platform.