Difference Between Goods and Merchandise
We have received several inquiries about the difference that may exist between a good and a commodity.
Consultation is somewhat curious and simple, it is perhaps a bit complicated to explain.
But as usual, try to resolve these concerns simply, for here we try to write for those with little knowledge and not for scholars.
Let’s start by defining what is a good in economics or in economic terms
Goods: Object material product of economic activity used to meet any business need. Things or rights likely to produce benefits and / or grant rights of economic character are goods.
Merchandise: Material objects of production, processing, distribution or sale and is the object of the company. Product intended to be marketed.
From the above we conclude that an asset is any object owned by the company, for example: a building, vehicle, machinery, stationery, etc..
The merchandise is also a good, it’s just one that sells well. This leads us to conclude that any property or asset that a company has earmarked for sale are called merchandise.
In other words, every commodity is a good but not every good is a commodity, since it is considered a good, only that it intended to sell, to be marketed.
It may be the case for example, either a single asset or a good. Suppose a company that sells television sets (their purpose is the sale of television sets), but decides that one of the televisions will be positioned in a corner store for employees and clients to view the football games. In this case, the TV that hangs on the corner is not a commodity because it is not for sale, but is intended to be used by the company, while the other TVs will continue to sell being a commodity.
A good is any asset or object to be used by the company. Merchandise is any asset or object to be sold by the company.