Difference between merchandising, manufacturing & service rendering business
Service Business
This type of business provides services to its customers, it could be defined as selling your time, or also
known as labor business. These type of businesses provide services to private and commercial clients. A
few examples of service businesses are: accounting firms, physical therapy offices, handyman
companies, a mechanic shop, etc.
Merchandise Business
This type of business sells physical goods or products to its customers, and the most common types of
merchandise businesses are department stores, grocery stores, dealerships, etc. There are also two
subcategories under this classification, because a merchandise business can be either a wholesale
business or a retail business.
The difference between wholesale and retail is that wholesalers buy directly from manufacturers and
then they sell the merchandise to retailers, and the retailers buy from wholesalers (sometimes directly
from the manufacturing company) and sell to their customers.
Manufacturing Business
A manufacturing business is in charge of producing the physical goods that they sell to wholesalers or
retailers, and sometimes directly to the consumer. Manufacturing companies could be makers of
clothing, automobile manufacturers, and other types of factories that involve production.