Merchandising Business

A merchandising business or trading business

is a type of business that buy goods and sell
them without changing their physical form
adding the profits to earn income. The key of
an merchandising business is the inventory,
they are the both buyers and seller as the
same time. In simply, this type of business
resell the products that previously brought
by the supplier. Example for this type of
business are the sari-sari stores, hardware,
car dealers, department stores and etc...
ADVANTAGES OF AN MERCHANDISING DISADVANTAGES OF AN
MERCHANDISING

 Compare to a manufacturing firm, you  Less flexibility in managing cost, This

need a much lower start-up capital is because the cost of your goods is
because you don't need to acquire based primarily on their purchase
machineries to produce your goods. price, which you don't control.

 You can take advantage of price  Self-satisfaction is low because you

fluctuations. For example, when didn't produce the products you sold.
goods are on sale, you can acquire
them at a discounted price and resell
them at a much higher price.