TLE 10 – 1st Quarter

Merchandising Business

- Is a type of business engaged of buying and selling of

products with corresponding mark-ups
- Performs to personalities: buyer and seller at the
same time

Activities Performed by
Merchandising Business
1. Purchasing- performed by the buyer personality
The merchandising business should follow the following
factors for the purchasing of products or items:
 Kind – type of products to be purchased. “Will this
product answers or meets the demands or satisfaction
of the consumer?” – Questions to be answered
 Quantity- normally a merchandising business buy
products in large quantities because they can enjoy
lower prices or certain discount offerings by the
supplier.
Page | 1
TLE 10 – 1st Quarter

 Quality – quality of the product should be in

consideration for purchasing of products or items
because it will help to boost the personality or image of
the business and of course satisfy the consumer

 Cost- prices of the product. Prices are cost of the

product and the first considerations of the consumers
for the purchases of the products or items. The
business should consider the affordability of the prices
of the product without suffering its quality.

2. Handling
- under buyer personality
- cost of transportation of goods
- products should be taken care good of in order to protect
it from damages

3. Returning of goods purchased

- Defective items or goods should be returned to the
supplier
- provided and that is supported by a written document
- the supplier then, will issue a memorandum known as
“debit memorandum” as a recognition of certain returns
of items

4. Selling
- Performed by the seller personality
- And so whatever are the goods purchased that is to be
sold to the immediate or target consumer whether the
mode of payment of selling is cash or accounts sale
Page | 2
TLE 10 – 1st Quarter

5. Returning of goods sold

- Any returns of goods sold should be supported by a
document known as receipt

6. Maintaining adequate stocks on hand

- This activity is very important to the seller personality
- Monitoring of availability of products on hand is very
important in order to ensure the continuity of supply to
your consumer.

Page | 3