Product vs. Merchandise — What's the Difference?
Edited by Tayyaba Rehman — By Maham Liaqat — Updated on March 10, 2024
A product is anything offered to the market for use or consumption, while merchandise specifically refers to goods for sale in retail.
Difference Between Product and Merchandise
Table of Contents
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Key Differences
A product encompasses a broad range of items, services, or concepts offered by businesses or individuals to satisfy consumer needs or wants. This term can include physical goods, services, software, and more, designed to provide value to customers. Whereas, merchandise typically refers to goods that are manufactured or acquired for the purpose of selling to customers in a retail environment. Merchandise is a subset of products, specifically focusing on the retail aspect.
Products can be tangible, like cars and furniture, or intangible, such as insurance policies and software. They are the result of a production process and are offered to the market to fulfill some demand or need. On the other hand, merchandise usually consists of tangible goods. These goods are often stocked in stores or online platforms, and the term is closely associated with the retail and trade industries.
The development of a product involves a combination of ideas, information, and physical material, aimed at solving a problem or providing a benefit to consumers. It is a broader concept that signifies everything available in the market for acquisition, use, or consumption. Meanwhile, merchandise is specifically selected and presented for sale, with a focus on inventory, display, and sales strategies to attract and retain customers.
In marketing, the strategy for promoting a product is comprehensive, addressing the product's benefits, features, and competitive advantages to a wide audience. Promotional efforts might include advertising, public relations, and direct sales. In contrast, merchandising strategies are more focused on the presentation and sale of goods within a retail space, emphasizing pricing, packaging, display, and sales promotions to increase turnover.
While products serve a variety of markets and can be sold in numerous channels, including B2B (business-to-business) and B2C (business-to-consumer), merchandise is specifically aimed at the end consumer in a B2C context. The goal with merchandise is often to maximize retail sales and ensure product movement from shelves to consumers.
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Comparison Chart
Definition
Anything offered to the market for use or consumption.
Goods for sale in retail.
Types
Tangible and intangible (goods, services, software).
Primarily tangible goods.
Focus
Satisfying customer needs, broad market application.
Retail sales, presentation, and inventory management.
Development
Combination of ideas, information, and physical material.
Selection and acquisition for resale.
Marketing Strategy
Comprehensive, targeting various channels and markets.
Focused on retail presentation and sales strategies.
Target Market
B2B and B2C, wide audience.
Primarily B2C, end consumers in a retail setting.
Goal
Solve problems, provide benefits, meet demands.
Maximize retail sales, attract and retain customers.
Compare with Definitions
Product
Anything offered by a business to meet consumer needs.
The company launched a new software product.
Merchandise
Goods available for sale in stores.
The store refreshed its merchandise for the holiday season.
Product
Aimed at solving problems or providing benefits.
Their cleaning product makes household chores easier.
Merchandise
Often refers to retail items.
Merchandise discounts attracted more customers.
Product
May involve intangible elements like software.
Subscription services are popular digital products.
Merchandise
Focuses on presentation and sales in retail.
Effective merchandise display can boost sales.
Product
Can be a service offered to customers.
Banking institutions offer various financial products.
Merchandise
Includes products specifically for consumer purchase.
New merchandise arrives weekly at the boutique.
Product
Includes physical goods manufactured or created.
The latest smartphone is their flagship product.
Merchandise
Can denote a range of consumer goods.
The merchandise mix includes clothing, accessories, and electronics.
Product
A scalar product.
Merchandise
Goods bought and sold in business; commercial wares.
Product
An item that is made or refined and marketed
Farm products.
Soaps, detergents, and similar products.
Travel products such as vacation trips.
Merchandise
To buy and sell (goods).
Product
Such items considered as a group
Sold a lot of product in May.
Merchandise
To promote the sale of, as by advertising or display
Merchandised a new product.
Product
A preparation, such as a gel, used for styling hair
Began to use product soon after he became famous.
Merchandise
To buy and sell goods; trade commercially.
Product
A substance resulting from a chemical or nuclear reaction.
Merchandise
(uncountable) Goods which are or were offered or intended for sale.
Good business depends on having good merchandise.
Product
A direct result; a consequence
"Is history the product of impersonal social and economic forces?" (Anthony Lewis).
Merchandise
(uncountable) Commercial goods connected (branded) with an entity such as a team, band, company, charity, work of fiction, festival, or meme. merch.}}
Product
A person whose characteristics or abilities are the result of certain influences or kinds of experience
"She is the product of an America in which explicit displays of pride in intellect are considered unseemly" (Yuval Levin).
Merchandise
A commodity offered for sale; an article of commerce; a kind of merchandise.
Product
The number or quantity obtained by multiplying two or more numbers together.
Merchandise
The act or business of trading; trade; traffic.
Product
A vector product.
Merchandise
To engage in trade; to carry on commerce.
Product
Anything that is produced; a result.
The product of last month's quality standards committee is quite good, even though the process was flawed.
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.
Product
The amount of an artifact that has been created by someone or some process.
They improve their product every year; they export most of their agricultural production.
Merchandise
To engage in the trade of.
Product
A consequence of someone's efforts or of a particular set of circumstances.
Skill is the product of hours of practice.
His reaction was the product of hunger and fatigue.
Merchandise
(transitive) To engage in in-store promotion of the sale of.
He got hired to merchandise some new sporting goods lines.
Product
(chemistry) A chemical substance formed as a result of a chemical reaction.
This is a product of lime and nitric acid.
Merchandise
(transitive) To promote as if for sale.
The record companies don't get as good a return on merchandising artists under contract.
Product
(arithmetic) A quantity obtained by multiplication of two or more numbers.
The product of 2 and 3 is 6.
The product of 2, 3, and 4 is 24.
Merchandise
The objects of commerce; whatever is usually bought or sold in trade, or market, or by merchants; wares; goods; commodities.
Product
(mathematics) Any operation or a result thereof which generalises multiplication of numbers, like the multiplicative operation in a ring, product of types or a categorical product.
Merchandise
The act or business of trading; trade; traffic.
Product
Any tangible or intangible good or service that is a result of a process and that is intended for delivery to a customer or end user.
Merchandise
To trade; to carry on commerce.
Product
A commodity offered for sale.
That store offers a variety of products.
We've got to sell a lot of product by the end of the month.
Merchandise
To make merchandise of; to buy and sell.
Product
Any preparation to be applied to the hair, skin, nails, etc.
Wash excess product out of your hair.
Merchandise
Commodities offered for sale;
Good business depends on having good merchandise
That store offers a variety of products
Product
Illegal drugs, especially cocaine, when viewed as a commodity.
I got some product here – you buying?
Merchandise
Engage in the trade of;
He is merchandising telephone sets
Product
To produce.
Product
Anything that is produced, whether as the result of generation, growth, labor, or thought, or by the operation of involuntary causes; as, the products of the season, or of the farm; the products of manufactures; the products of the brain.
There are the productOf those ill-mated marriages.
These institutions are the products of enthusiasm.
Product
The number or sum obtained by adding one number or quantity to itself as many times as there are units in another number; the number resulting from the multiplication of two or more numbers; as, the product of the multiplication of 7 by 5 is 35. In general, the result of any kind of multiplication. See the Note under Multiplication.
Product
To produce; to bring forward.
Product
To lengthen out; to extend.
He that doth much . . . products his mortality.
Product
To produce; to make.
Product
Commodities offered for sale;
Good business depends on having good merchandise
That store offers a variety of products
Product
An artifact that has been created by someone or some process;
They improve their product every year
They export most of their agricultural production
Product
A consequence of someone's efforts or of a particular set of circumstances;
Skill is the product of hours of practice
His reaction was the product of hunger and fatigue
Product
A chemical substance formed as a result of a chemical reaction;
A product of lime and nitric acid
Product
A quantity obtained by multiplication;
The product of 2 and 3 is 6
Product
The set of elements common to two or more sets;
The set of red hats is the intersection of the set of hats and the set of red things
Common Curiosities
What differentiates a product from merchandise?
Products include both tangible and intangible offerings to satisfy needs, while merchandise specifically refers to goods for retail sale.
Can a service be considered merchandise?
Generally, merchandise refers to tangible goods; services are categorized as intangible products.
Is digital content considered a product or merchandise?
Digital content is considered a product, particularly when it's an intangible offering like software or media content.
What role does packaging play in merchandising?
Packaging is crucial in merchandising for attracting customers, providing product information, and enhancing the brand experience.
Can the same item be both a product and merchandise?
Yes, an item can be both; it's a product in the general market and becomes merchandise when sold in a retail context.
What factors influence merchandise selection in retail?
Selection is influenced by consumer trends, seasonal demands, and the retailer's brand identity.
How do businesses choose their merchandise?
Businesses select merchandise based on market demand, trends, and their target audience's preferences.
How do promotional strategies differ for products and merchandise?
Product promotions may target a broader audience and various markets, while merchandise promotions focus on retail strategies to attract consumers.
How important is the display of merchandise in retail?
Merchandise display is vital for retail success as it influences shopping behavior and enhances the shopping experience.
Can merchandise include branded items?
Yes, merchandise can include branded items, often used for marketing or loyalty programs.
What's the difference in inventory management between products and merchandise?
Inventory management for products involves broader supply chain considerations, whereas for merchandise, it focuses on retail stock levels and turnover.
Do all products become merchandise?
Not all products become merchandise; only those intended for retail sale to consumers do.
How does customer feedback influence product and merchandise development?
Feedback can guide the development, selection, and presentation of both products and merchandise, ensuring they meet consumer expectations.
What's the significance of merchandise turnover?
High turnover indicates good sales performance and efficient inventory management in retail.
How does online retailing affect merchandise strategies?
Online retailing requires different merchandising strategies focused on digital presentation, SEO, and customer engagement.
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Written by
Maham Liaqat
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
