What Is a Merchandising Company?


Quick Answer

A merchandising company is an enterprise that buys goods and sells them for a profit. Most merchandising companies buy their goods from distributors and market the products to shopping facilities.

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Full Answer

A merchandising company only deals with finished goods. Unlike other businesses, merchandising companies rarely work with individual customers and instead provide products to stores, where they can sell their merchandise in bulk. These companies buy finished products as cheaply as they can and sell them for the maximum amount of profit. There are various ways in which merchandising companies sell their products.

One way a merchandising company makes a large profit is by selling their finished products wholesale, which means that they sell a large portion of their finished goods to a store or distributor. If the wholesale product is bought by a distributor, then the products are placed in several stores instead of one. Unlike other companies that deal with products, merchandising companies don't directly deal with the consumer in most cases, but instead focus on obtaining the product and providing it to consumers through mediums.

Many large corporations act as merchandising companies, manufacturing their own goods in order to reduce costs and control all aspects of the business.

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