Commodity


When talking about merchandise, reference is made to everything that can be “sold or bought”, which means that each product has a certain price. These are classified as fungible, since they are consumed with total or partial use, which indicates that the markets treat all requests for one or more goods without the difference of the place of origin, making use of the transport of goods to mobilize the product. from the place of production to the place of distribution.

what is merchandise

This term is defined as any object that can be exchanged or traded in the market. It is characterized by satisfying the needs of the client, society or consumer. It is conceptualized as any good that people can buy or sell and through this transaction, collective demands for said product are covered, dispatching merchandise to the corresponding stores.

In economics, this term is defined as any good or product whose destination is commercial use. Emphasis is placed on basic, generic products that do not have greater differentiation, since there are multiple types of products for sale.

The acquisition of merchandise varies according to the type of transaction. If they are merchants, they buy the product at a low cost and resell it at a markup for a profit, this is known as consignment merchandise or commission merchandise. The customer acquires it through purchases or exchanges with these merchants.

Within the uses of this term, is the transport of goods, also known as logistics. It is an economic activity that allows the mobilization of the product from one place to another through different means, which can be naval, land or air. The word has its origin in the Latin mercantis, which means to trade.

Characteristics of the goods

The concept of money arises from the abstract understanding of the value of what is considered merchandise and for a good, product or service to be taken into account as such, it must have these elements:

  • Have the intervention of man, that is, that people intervene in its production, collection or distribution.
  • Its elaboration implies costs for raw material, production, promotion, distribution, among others.
  • It must be produced by an economic activity.
  • They may be in the warehouse or they may be goods in transit, meaning they have been paid for by the trader and are on their way to their next sale.
  • They can be goods on consignment.
  • They do not necessarily have to be sold, they can also be exchanged.

types of goods

Merchandise - Types of merchandise (non-perishable)

The classification of merchandise is distributed in perishable, non-perishable, fragile, dangerous, dimensional or live animal products.

perishable merchandise

It is the one that loses its properties in a short time, deteriorating due to environmental conditions such as pressure, temperature, humidity, among others, being its handling and transport extremely delicate. These are usually medicines or foods such as fruits, fish, meat, vegetables, dairy products.

non-perishable merchandise

They are those that last over time and remain in good condition without the need to refrigerate them. For example, canned food.

fragile merchandise

It is the one that tends to be easily damaged while being transported from one place to another. Falls, shocks, vibrations or improper handling can damage the product, for example, the glass.

dangerous goods

They are substances or articles that present a great danger to health and the environment, before, during and after their transportation. They also represent a danger to security or property, whether public or private. An example of these products are explosives, acids, bombs, ammunition, among others.

dimensional goods

They are those products that need special handling and storage, since their large size requires different attention from the rest of the products. Example, vehicles, furniture, appliances, etc.

Live animals

They are those living beings, with the ability to be marketed, for example, cattle, horses, chickens, roosters and all those intended for sports, clothing, consumption, medicines, transportation, experimentation or cosmetics. Currently this is frowned upon and is considered speciesism, all due to the trafficking of many species.

Merchandise according to Karl Marx

Merchandise - Merchandise according to Karl Marx

According to Karl Marx, the commodity is everything that is produced by human labor. Marx did not have in mind that the merchandise had a monetary value, on the contrary, he thought that it was a barter or a kind of tax by the stadium, according to the needs of society. Countries with free or capitalist economies have a different economic system, since merchandise has a monetary or exchange value and is determined according to supply and demand.

According to Marx, there are various models of exchange, these are:

  1. Barter: X «Goods(s) A» = Y «Goods(s) B» (MA-MB)
  2. Sell ​​to buy: X “Commodity(s) A” = Y money = Z “Commodity(s) B” (MA-D-MB)
  3. Buy to sell: X money = Y «Commodity(ies) A» (+ goods) = X money + Z money (DM-D’)

Frequently Asked Questions about Merchandise

What is a commodity?

It is a good or product whose destination is trade or exchange. The term is known because it tends to satisfy the needs of the collective.

What is merchandise clearance?

It is the act or formality of entry and exit of products to a certain place, which may be a private public warehouse.

How to classify merchandise?

They can be classified according to their origin, destination, type of product (whether it is perishable or not), function, among others. The types are perishable, non-perishable, fragile, dangerous, dimensional and live animals.

What is a merchandise order?

It is a letter through which the client executes the order of a certain product to a supplier, stipulating in it the payment conditions.

What is perishable merchandise?

It is one that can deteriorate in a few periods of time for environmental reasons, such as humidity, pressure, composition, among others. Example, fruits, vegetables, meats, fish, etc.