Definition
Merchandise can mean: [1]
1. (noun) Goods to be bought or sold, or
2. (verb) To promote the sale of goods (merchandising)
Merchandising is a term of many varied and not generally adopted meanings. It may: [1]
- relate to the promotional activities of manufacturers that bring about in-store displays, or
- identify the product and product line decisions of retailers.
Balanced stock is a composition of merchandise inventory in the colors, sizes, styles, and other characteristics that will satisfy customer wants. [1]
Cancellation is notification to a vendor that a buyer does not wish to accept ordered merchandise. Also, it is merchandise declared surplus by retailers, often sold in broken lots to discount houses or liquidators. For example, out-of-style or slightly damaged shoes are frequently sold as cancellation shoes. [1]
Classification is a grouping of merchandise into a homogeneous category usually smaller than a department. It is particularly useful for control purposes. [1]
Consolidated buying is a type of central market representation in which the authority and responsibility for merchandise selection and purchase are vested in a central market office, rather than in the individual store units represented by the central office. [1]
The terms “damaged goods” and “as is” refer to merchandise that is offered for sale without recourse to an adjustment or a refund. The goods may be irregular, shopworn, or damaged, but that is understood. [1]
Distress (or unfashionable) merchandise refers to goods that are (or soon will be) past the point where they can be sold at anything close to normal prices. This includes perishable, unfashionable, damaged, and unseasonal merchandise that still may have some market value. [1]
Diverted merchandise or diverted goods are shipped to one customer and then resold to another customer. For example, if a retail drug store overbuys vitamins at a promotional price, it may ship some of its excess inventory to a dollar store. [2]
The term odd lot refers to dealing with broken lots or unbalanced assortments of merchandise reduced in price for quick turnover. [1]
See Also
References
- American Marketing Association, AMA Dictionary.
- Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; and David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance (Second Edition). Upper Saddle River, New Jersey: Pearson Education, Inc.