Commodity

economic-dictionary

A merchandise is any good that can be traded, whether physically or not, through economic activities known as the purchase and sale of merchandise or merchandise.

The concept of merchandise is usually identified with that of an economic good. This is precisely due to the aforementioned capacity of being able to become an object of purchase or sale between different economic agents.

All merchandise is in itself the center or nucleus of the economic and commercial activity in which it participates. Sellers and buyers will establish their exchange relations taking into account their nature and a series of characteristic conditions.

For this reason, this motive treats merchandise as energizing goods for trade.

On the other hand, a merchandise may or may not have a physical presence. This happens because there are both material and non-material goods. That is, they can be bought and sold from kilograms of apples to company shares, through an industrial patent.

In this way, the existence of different types of merchandise translates into the possibility that a great multitude of specific markets cohabit.

In this sense, we can find immediate examples in the day to day such as the raw materials market, the textile trade or the sale of precious metals. An example of the latter would be gold, silver or platinum.

Economic valuation of a merchandise

Usually the value or cost of a merchandise will respond to various distinctive factors:

  • Shortage. That an economic good is scarce makes it more valuable
  • Exclusiveness. In the case of patents and trademarks, there may be more or less strict restrictions on the possession and use of a good or service, as well as its commercial use.
  • Originality or lack of substitute goods. The difficulty in satisfying the need of consumers or buyers with other products has a significant influence on the valuation
  • Location or origin of the good. The fact of having to access a merchandise located remotely implies the need for transport, storage, packaging, maintenance and conservation ...
  • In general, all merchandise has a measurable value in monetary money (for example dollars or euros). However, in the past, the calculation of the value of merchandise using metals such as gold or silver has been frequent.

Merchandise from the point of view of the company

The goods treated as merchandise and destined to be exchanged in the markets will vary according to the business purpose they have.

Being dynamic objects and protagonists of trade between companies and individuals, the character or nature of the merchandise will undoubtedly condition the commercial and economic activity of the economic agent who wants to operate with it.

In this way, it is necessary to distinguish between goods produced and marketed by industrial companies, manufacturers or artisans. Or, another type of merchandise later modified or transformed to be later sold by commercial companies.

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