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Commodity vs. Merchandise — What's the Difference?

By Fiza Rafique & Urooj Arif — Updated on April 30, 2024
Commodity refers to basic goods used in commerce interchangeable with other goods of the same type, while merchandise encompasses a broader category of goods bought and sold in retail.
Commodity vs. Merchandise — What's the Difference?

Difference Between Commodity and Merchandise

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Key Differences

Commodity is typically a raw material or primary agricultural product that can be bought and sold, such as oil, grain, or metals. Whereas, merchandise includes finished goods available for consumer purchase in retail environments.
Commodities are often standardized and traded on specific exchanges based on their quality and quantity, while merchandise encompasses various consumer goods that vary widely in type, brand, and quality.
The price of commodities is usually determined globally and is influenced by international market forces, whereas merchandise prices are often set by retailers based on factors like brand value, demand, and competitive pricing.
Commodities play a crucial role in global economics as they are fundamental to manufacturing and energy production, on the other hand, merchandise drives consumer markets and retail sales.
Trading in commodities can be more volatile due to factors such as weather, political instability, and changes in global demand, while the market for merchandise can be influenced more by consumer trends and seasonal changes.
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Comparison Chart

Definition

Basic, interchangeable good used in commerce
Wide range of consumer goods sold in retail

Types

Often raw materials or agricultural products
Finished goods, varying widely in type and brand

Price Determination

Globally influenced by market forces
Set by retailers based on demand, cost, and competition

Trading Platforms

Specific commodity exchanges like NYSE, LME
Retail environments, online and offline stores

Market Influence

Economic fundamentals, global demand, and supply
Consumer preferences, trends, and brand perception

Compare with Definitions

Commodity

A raw material or primary agricultural product that can be traded.
Wheat is a commodity that fluctuates in price based on global supply.

Merchandise

Goods bought and sold in retail, often finished products.
Clothing and electronics are popular types of merchandise.

Commodity

Essential components of global trade and economic indicators.
Commodities like natural gas are critical to energy sectors worldwide.

Merchandise

Includes a wide range of consumer products with varying brands and qualities.
Luxury merchandise often carries a higher price due to branding.

Commodity

Prices influenced by international market forces.
The price of copper is often driven by industrial demand and mining supply.

Merchandise

Influenced by consumer trends and marketing.
Merchandise sales often increase with effective advertising campaigns.

Commodity

Traded on commodity exchanges with specifications for quality and quantity.
Gold is traded on commodity exchanges around the world.

Merchandise

Sold in various retail formats, from stores to online platforms.
Merchandise on e-commerce sites reaches a global audience.

Commodity

Standardized and interchangeable with other goods of the same type.
Crude oil is a commodity essential for various industries.

Merchandise

Prices determined by factors like brand value and market demand.
Seasonal merchandise can command premium pricing during holidays.

Commodity

In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.The price of a commodity good is typically determined as a function of its market as a whole: well-established physical commodities have actively traded spot and derivative markets. The wide availability of commodities typically leads to smaller profit margins and diminishes the importance of factors (such as brand name) other than price.

Merchandise

Goods bought and sold in business; commercial wares.

Commodity

Something useful that can be turned to commercial or other advantage
"Left-handed, power-hitting third basemen are a rare commodity in the big leagues" (Steve Guiremand).

Merchandise

To buy and sell (goods).

Commodity

A product or service that is indistinguishable from ones manufactured or provided by competing companies and that therefore sells primarily on the basis of price rather than quality or style.

Merchandise

To promote the sale of, as by advertising or display
Merchandised a new product.

Commodity

(Archaic) Advantage; benefit.

Merchandise

To buy and sell goods; trade commercially.

Commodity

Anything movable (a good) that is bought and sold.

Merchandise

(uncountable) Goods which are or were offered or intended for sale.
Good business depends on having good merchandise.

Commodity

Something useful or valuable.

Merchandise

(uncountable) Commercial goods connected (branded) with an entity such as a team, band, company, charity, work of fiction, festival, or meme. merch.}}

Commodity

(economics) Raw materials, agricultural and other primary products as objects of large-scale trading in specialized exchanges.
The price of crude oil is determined in continuous trading between professional players in World's many commodities exchanges.

Merchandise

A commodity offered for sale; an article of commerce; a kind of merchandise.

Commodity

(marketing) Undifferentiated goods characterized by a low profit margin, as distinguished from branded products.
Although they were once in the forefront of consumer electronics, the calculators have become a mere commodity.

Merchandise

The act or business of trading; trade; traffic.

Commodity

(Marxism) Anything which has both a use-value and an exchange-value.

Merchandise

To engage in trade; to carry on commerce.

Commodity

(obsolete) Convenience; usefulness, suitability.

Merchandise

(intransitive) To engage in in-store promotion of the sale of goods, as by display and arrangement of goods.
He started his career merchandising in a small clothing store chain.

Commodity

(obsolete) Self-interest; personal convenience or advantage.

Merchandise

To engage in the trade of.

Commodity

Convenience; accommodation; profit; benefit; advantage; interest; commodiousness.
Drawn by the commodity of a footpath.
Men may seek their own commodity, yet if this were done with injury to others, it was not to be suffered.

Merchandise

(transitive) To engage in in-store promotion of the sale of.
He got hired to merchandise some new sporting goods lines.

Commodity

That which affords convenience, advantage, or profit, especially in commerce, including everything movable that is bought and sold (except animals), - goods, wares, merchandise, produce of land and manufactures, etc.

Merchandise

(transitive) To promote as if for sale.
The record companies don't get as good a return on merchandising artists under contract.

Commodity

A parcel or quantity of goods.
A commodity of brown paper and old ginger.

Merchandise

The objects of commerce; whatever is usually bought or sold in trade, or market, or by merchants; wares; goods; commodities.

Commodity

Articles of commerce

Merchandise

The act or business of trading; trade; traffic.

Merchandise

To trade; to carry on commerce.

Merchandise

To make merchandise of; to buy and sell.

Merchandise

Commodities offered for sale;
Good business depends on having good merchandise
That store offers a variety of products

Merchandise

Engage in the trade of;
He is merchandising telephone sets

Common Curiosities

What is merchandise?

Merchandise refers to goods that are bought and sold, especially in retail.

How are commodities priced?

Commodity prices are determined by global market forces including supply and demand.

How are merchandise prices determined?

Prices for merchandise are set by retailers based on cost, demand, and competitive factors.

Can you give an example of a commodity?

Examples of commodities include crude oil, gold, and wheat.

Can you give an example of merchandise?

Examples of merchandise include clothing, electronics, and furniture.

What is a commodity?

A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type.

Where are commodities traded?

Commodities are traded on specific commodity exchanges like the NYSE or LME.

What influences commodity prices?

Prices for commodities can be influenced by natural events, political instability, and economic changes.

Are commodities always raw materials?

While typically raw materials or agricultural products, some commodities like precious metals are also considered finished products.

Where is merchandise sold?

Merchandise is sold in various retail outlets, from physical stores to online platforms.

What influences merchandise sales?

Sales of merchandise are influenced by consumer trends, marketing, and seasonal demands.

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Author Spotlight

Written by
Fiza Rafique
Fiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Co-written by
Urooj Arif
Urooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.

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