How is a merchandising business defined?

A merchandising business is defined as one that purchases goods from suppliers and then sells those goods to consumers, either online or in physical stores. This definition encompasses a wide range of businesses that focus on the retail aspect of the supply chain. The key characteristic of a merchandising business is its role in the resale of products without altering them significantly, which differentiates it from manufacturing businesses that create products or service-oriented companies that focus on providing intangible offerings.

In contrast, a business that manufactures products is primarily involved in creating items from raw materials rather than reselling finished goods. Similarly, a company that invests in stock markets does not involve itself directly in the buying and selling of physical goods, and a service-oriented business focuses on offering services rather than selling products. The emphasis in merchandising is on the transactional nature of selling goods to consumers, making it distinct from the other types of businesses listed.