Running a successful business in the market involves making a number of decisions on a daily basis; these decisions will define the methodology with which you want to work in the market. One such question arises when you want to run a successful is which model to choose, it can be retail, wholesale, business to business or business to customer. All these business models are distinct from each other, with variations in the method of working and consumer behavior and many other small aspects.
In a wholesale business, the person does not deal directly with the customer, he/she is the behind the curtain player who channels the product in the market with the help of various other small and big retailers. This model of business lets the person stay away from the direct interface to the customers. A wholesale business allows the person to buy the product in bigger quantities and then supply it in the market at their own price, giving them the liberty to earn higher profits anywhere they can. The wholesale business owners act like a middleman and in short, are able to control the market after the manufacturers. The wholesale business can be monotonous as you have to follow the same routine every day and there is no engagement with the customers, this business model is best suited for those who like to work in a professional and are good in logistics management on a higher scale.
The retail business owners, however, have to face the ultimate customer every day as they represent the direct link between the product and the customer. They have the liberty to choose the spot where they want to sell the product and to whom they want to sell it. The profit margin of the retail business owners may be less than the wholesale business owners, but they have the chance to develop their customer base by engaging with any number of customers that they want and can handle. But the retail business is not for those who cannot indulge in social talks and especially unnecessary talks which will not do you any good, but still, you have to talk to the customer if you want to retain him.
There are some other business models that are emerging today, the B to B model enables one business owner, wholesale or retail to sell the products to their corresponding business model owner directly and in B to C, which mostly consists of online shopping mode allows the big business houses to get in direct contact with the customers.