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Definition: Merchant

A merchant is a business person whose occupation is to but goods from any source like wholesaler and use it for resale to everyone to generate profits. A merchant has an expert knowledge about the products he sells. In historical contexts, this is to do with trading of goods.

There are two types of merchant: -

i. Wholesaler merchant: - he is the point of contact or the middleman between producer and the retail merchant. These get involved in trading of large quantities of goods at reasonable prices.

ii. Retailer merchant: - This the end selling point in the chain. Retailers sell the merchandize to the customers but in small quantities and a slight higher price than the wholesaler. The difference in the price is the profit for the retailer.


In the above diagram, manufacturers are equivalent to producers; distributors are the wholesalers. These are also known as distributors because sometime they engage themselves only in movement of goods. Retailers or dealers are the customer touch point for purchase of goods.


Hence, this concludes the definition of Merchant along with its overview.


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