Difference Between Merchandise Concern and Service Concern Business

We will discuss the difference between merchandise concern and service concern business, but first, we need to know what is the merchandise concern and service concern business.

Merchandise concern:

The merchandise concern is that branch of business that deals with the purchase and selling of merchandise (products). Unlike service concerns, the merchandise concern earns revenue by selling products to the customer.

Merchandise’s concern deals with the purchase and sale of products.  Merchandising companies buy goods from the manufacturers for resale.

ExampleCommercial importers and independent distributors in Bangladesh are merchandising concerns such as Agora one-stop mall, Lass Pharma, PQS, and so on.

Service ConcernService concern deals with the purchase and sale of service

Difference between Merchandise concern and service concern business

Business is of two types- one is a service enterprise and another is merchandise enterprise. Though these are two business concerns, they have some differences in the following cases:

TopicService EnterpriserMerchandiser
Business PatternIt is a service-oriented business.It is  a product-oriented business
Basic RevenueService revenue is the basic revenue of service enterpriseSales revenue is the basic revenue of the merchandiser.
JournalIt uses only periodic  Journal It uses both periodic and perpetual journal.
ScopeIt has a comparatively narrow scope of businesses.It has a comparatively wide scope of businesses.
The Cost of Goods SoldIt does not deal with the cost of goods soldIt deals with the cost of goods sold.
LimitationIt provides limited services within a limited area.It has no limitation in selling merchandise.
ExamplesSchools, colleges, universities, medical, clinic,  repair workshop, chartered accountants firm, law concern, transportation concern, etc.Stores,  stalls, shops, companies, incorporation
Difference between Merchandise concern and service concern

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