What is a Merchandising (or Retail) Business?

Written by Caroline Grimm in Accounting Basics,Financial Accounting

A merchandising business is one that purchases goods or products and sells them to its customers. A merchandising business acts as a market bringing together products and customers. A merchandising business can have a physical store location or an online location or both. Customers exchange money for the benefit (or perceived benefit) they receive from the products. Examples of merchandising businesses are:

  1. Walmart
  2. Ebay
  3. Lowe’s
  4. Target
  5. Amazon
  6. Grocery stores

To learn more about how financial statements for a merchandising business work, watch this video:

https://youtu.be/jwSlc4fMKII
Video explaining Income Statements in a Merchandising Business

Caroline Grimm

Caroline Grimm is an accounting educator and a small business enthusiast. She holds Masters and Bachelor degrees in Business Administration. She is the author of 11 books and the creator of Accounting How To YouTube channel and blog. For more information visit: https://accountinghowto.com/about/

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