Retail transactions can occur in person at a store or not in person through catalogs, websites or other remote methods. Wholesalers sell products in bulk to retailers, and invoices are typically sent for payment within 30 days. Business to business transactions involve companies selling products or services exclusively to other companies through contracts and agreements. Wholesalers can also sell directly to consumers online or over the phone at lower prices than retailers. Consumers make transactions directly with each other by selling items privately.

2. Fundamentals of Accountancy, Business and Management I

3. Retail to Customer, in Person
An in-person retail-to-customer transaction is
one of the simplest forms of business
transactions. It involves a customer going into
a store, selecting items to purchase and
buying the items using cash, check or a credit
card. The retailer charges the customer a price
based on the retail price of the items plus sales
tax if applicable.

4. Retail to Customer, Not in Person
Retailers can also sell products to customers without ever
interacting in person. Customers can order products from a
catalog by calling the business, placing an order over the
phone and paying for the retail price, applicable sales tax and
applicable shipping charges. The product is then shipped to
the customer in the mail. Customers can also make purchases
from retailers online through the retailer's website or from
another retail website. Online transactions typically are paid
for using a credit card or online merchant service like PayPal
or Google Checkout. Again, sales tax and shipping charges
often apply in addition to the retail purchase price.

5. Wholesaler to Retailer
Another type of business transaction is when a retailer buys
products from a manufacturer or wholesaler. Many retailers do not
manufacture the products they sell. Instead, they buy products
directly from manufacturers or wholesalers, then mark the prices up
from what they paid to sell to customers to make a profit. Products
are often ordered in bulk, and the transaction is typically paid for by
an invoice sent from the wholesaler to the retailer after the order is
filled. Retailers then have a certain amount of time, such as 30
days, to make payment to the wholesaler. In some cases,
wholesalers require payment via credit card when the order is
placed before they fill the order. Shipping charges might apply,
though discounts for buying in bulk are one way retailers can save
money on these transactions.

6. Business to Business
Many companies sell products or services to other businesses and
exclude end consumers from the business model completely. For
example, a company might sell cloud storage to other companies,
which are virtual servers that power websites and other technology.
The companies that purchase this cloud storage use it to store data
from their website or other company data securely. The seller in this
transaction (e.g., the cloud storage provider) markets its services to
other businesses and often sells its services exclusively to the buyer
for a set period of time. Transaction details are usually laid out in
contracts or business agreements. Payment details vary from
monthly invoices to other payment arrangements like quarterly or
annual payments.

7. Wholesale to Consumer
Some wholesalers also sell products directly to
consumers. Most of these transactions are done
online from various wholesaler websites, or over
the phone, since wholesalers rarely have
warehouses open to the public for browsing and
making purchases. These transactions are
attractive to consumers because consumers are
able to get lower prices on products that have not
been marked up by retailers.

8. Consumer to Consumer
Consumers also are able to make transactions with one
another. For example, if someone lists a car or other
product or service in the classifieds section of a newspaper,
another consumer can buy that car directly from the seller.
These transactions typically do not involve wholesalers,
retailers or other business. Online auction sites and
classified sites have made this model even more popular
since people have more resources to buy and sell things
between other consumers. In-person transactions are often
in cash, while online sites typically use online merchant
services.