Ask Difference

Merchandise vs. Stock — What's the Difference?

By Tayyaba Rehman & Urooj Arif — Updated on March 26, 2024
Merchandise refers to goods that are bought and sold in retail or wholesale, whereas Stock encompasses all items held by a business for sale, including merchandise and supplies.
Merchandise vs. Stock — What's the Difference?

Difference Between Merchandise and Stock

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Key Differences

Merchandise is a term specifically used to describe products that are purchased by a store or company for resale to customers. These items are often the primary offerings of a retail business, ranging from clothing and electronics to groceries. In contrast, stock encompasses not only these resale items (merchandise) but also any supplies or materials used in the operation of the business, such as packaging materials or maintenance supplies.
While merchandise is focused on the goods intended for sale to the end consumer, stock is a broader category that includes all items a business keeps on hand for various purposes. This means that all merchandise is stock, but not all stock is merchandise. For example, a retail store's stock includes both the merchandise on the shelves and the cleaning supplies in the back.
The management of merchandise involves decisions about product selection, pricing, and display to maximize sales. On the other hand, stock management (often referred to as inventory management) encompasses these aspects plus the oversight of additional supplies needed for business operations, ensuring that both sales goods and operational goods are adequately stocked.
Merchandise is directly related to the revenue generation of a business, as it consists of the items being sold to customers. Conversely, stock, while including these revenue-generating items, also contains goods that support the business's operations, some of which may not directly contribute to revenue but are essential for the smooth running of the company.
In accounting and financial reporting, the value of merchandise is often reflected in the cost of goods sold and inventory valuations, directly impacting a company's gross profit. Stock, however, affects a broader range of financial considerations, including operational costs and overall inventory management efficiency, reflecting the company's ability to manage both its sales goods and operational resources effectively.
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Comparison Chart

Definition

Goods bought for resale to customers.
All items a business holds, including merchandise and supplies.

Purpose

To be sold directly to end consumers for profit.
To support both sales and operations of a business.

Includes

Consumer products like clothing, electronics.
Merchandise plus operational supplies (e.g., office supplies, maintenance tools).

Management Focus

Product selection, pricing, display to maximize sales.
Overall inventory management, including sales goods and operational supplies.

Financial Impact

Reflected in cost of goods sold and inventory valuation.
Affects cost of goods sold, operational costs, and inventory efficiency.

Compare with Definitions

Merchandise

Directly contributes to a business's revenue through sales.
The holiday season saw a significant uptick in merchandise sales.

Stock

All items held by a business for various purposes.
The company's stock included not just products but also office supplies.

Merchandise

Products intended for sale to consumers.
The store's new merchandise included the latest fashion trends.

Stock

Includes items necessary for business operations.
Maintenance tools in the stock were crucial for daily operations.

Merchandise

Tailored to meet consumer demands and trends.
The merchandise selection expanded to include eco-friendly products.

Stock

Requires tracking and managing diverse items.
Effective stock management minimized overhead costs.

Merchandise

Critical in attracting and retaining customers.
The retailer adjusted the merchandise pricing to stay competitive.

Stock

Influences more than just sales revenue.
Efficient stock management improved the company's overall profitability.

Merchandise

Essential for marketing and sales efforts.
The visually appealing merchandise display attracted more customers.

Stock

Balances between sales goods and operational needs.
The company optimized its stock levels to ensure smooth operations.

Merchandise

To buy and sell (goods).

Stock

Stock (also capital stock) is all of the shares into which ownership of a corporation is divided. In American English, the shares are collectively known as "stock".

Merchandise

Goods bought and sold in business; commercial wares.

Stock

A supply accumulated for future use; a store.

Merchandise

To promote the sale of, as by advertising or display
Merchandised a new product.

Stock

The total merchandise kept on hand by a merchant, commercial establishment, warehouse, or manufacturer.

Merchandise

To buy and sell goods; trade commercially.

Stock

All the animals kept or raised on a farm; livestock.

Merchandise

(uncountable) Goods which are or were offered or intended for sale.
Good business depends on having good merchandise.

Stock

All the aquatic animals kept or raised in an aquaculture operation.

Merchandise

(uncountable) Commercial goods connected (branded) with an entity such as a team, band, company, charity, work of fiction, festival, or meme. merch.}}

Stock

A population of wild animals, especially of a species that is also farmed
Interactions between hatchery fish and wild stocks.

Merchandise

A commodity offered for sale; an article of commerce; a kind of merchandise.

Stock

A kind of financial security granting rights of ownership in a corporation, such as a claim to a portion of the assets and earnings of the corporation and the right to vote for the board of directors. Stock is issued and traded in units called shares.

Merchandise

The act or business of trading; trade; traffic.

Stock

The stock issued by a particular company
A mutual fund that invests in technology stocks.

Merchandise

To engage in trade; to carry on commerce.

Stock

Chiefly British The money invested in a corporation, including debt and equity.

Merchandise

(intransitive) To engage in in-store promotion of the sale of goods, as by display and arrangement of goods.
He started his career merchandising in a small clothing store chain.

Stock

Chiefly British A bond, especially a government bond.

Merchandise

To engage in the trade of.

Stock

The trunk or main stem of a tree or another plant.

Merchandise

(transitive) To engage in in-store promotion of the sale of.
He got hired to merchandise some new sporting goods lines.

Stock

A plant or stem onto which a graft is made.

Merchandise

(transitive) To promote as if for sale.
The record companies don't get as good a return on merchandising artists under contract.

Stock

A plant or tree from which cuttings and slips are taken.

Merchandise

The objects of commerce; whatever is usually bought or sold in trade, or market, or by merchants; wares; goods; commodities.

Stock

The original progenitor of a family line.

Merchandise

The act or business of trading; trade; traffic.

Stock

The descendants of a common ancestor; a family line, especially of a specified character
Comes from farming stock.

Merchandise

To trade; to carry on commerce.

Stock

Ancestry or lineage; antecedents.

Merchandise

To make merchandise of; to buy and sell.

Stock

The type from which a group of animals or plants has descended.

Merchandise

Commodities offered for sale;
Good business depends on having good merchandise
That store offers a variety of products

Stock

A race, family, or other related group of animals or plants.

Merchandise

Engage in the trade of;
He is merchandising telephone sets

Stock

An ethnic group or other major division of the human race.

Stock

A group of related languages.

Stock

A group of related families of languages.

Stock

The raw material out of which something is made.

Stock

Paper used for printing.

Stock

The broth in which meat, fish, bones, or vegetables are simmered for a relatively long period, used as a base in preparing soup, gravy, or sauces.

Stock

A main upright part, especially a supporting structure or block.

Stock

Stocks(Nautical) The timber frame that supports a ship during construction.

Stock

Often stocks A frame in which a horse or other animal is held for shoeing or for veterinary treatment.

Stock

Stocks A device consisting of a heavy timber frame with holes for confining the ankles and sometimes the wrists, formerly used for punishment.

Stock

(Nautical) A crosspiece at the end of the shank of an anchor.

Stock

The wooden block from which a bell is suspended.

Stock

The rear wooden, metal, or plastic handle or support of a rifle, pistol, or automatic weapon, to which the barrel and mechanism are attached.

Stock

The long supporting structure and mooring beam of field-gun carriages that trails along the ground to provide stability and support.

Stock

A handle, such as that of a whip, a fishing rod, or various carpentry tools.

Stock

The frame of a plow, to which the share, handles, coulter, and other parts are fastened.

Stock

A theatrical stock company.

Stock

The repertoire of such a company.

Stock

A theater or theatrical activity, especially outside of a main theatrical center
A small role in summer stock.

Stock

(Botany) Any of several Eurasian and Mediterranean plants of the genus Matthiola in the mustard family, especially M. incana, widely cultivated for its clusters of showy, fragrant, variously colored flowers.

Stock

(Games) The portion of a pack of cards or of a group of dominoes that is not dealt out but is drawn from during a game.

Stock

(Geology) A body of intrusive igneous rock of which less than 100 square kilometers (40 square miles) is exposed.

Stock

(Zoology) A compound organism, such as a colony of zooids.

Stock

Personal reputation or status
A teacher whose stock with the students is rising.

Stock

Confidence or credence
I put no stock in that statement.

Stock

A long white neckcloth worn as part of a formal riding habit.

Stock

A broad scarf worn around the neck, especially by certain clerics.

Stock

Rolling stock.

Stock

To supply (a shop) with merchandise.

Stock

To supply (a farm) with livestock.

Stock

To fill (a stream, for example) with fish.

Stock

To keep for future sale or use.

Stock

To provide (a rifle, for example) with a stock.

Stock

(Obsolete) To put (someone) in the stocks as a punishment.

Stock

To gather and lay in a supply of something
Stock up on canned goods.

Stock

To put forth or sprout new shoots. Used of a plant.

Stock

Kept regularly in stock
A stock item.

Stock

Repeated regularly without any thought or originality; routine
A stock answer.

Stock

Employed in dealing with or caring for stock or merchandise
A stock clerk.

Stock

Of or relating to the raising of livestock
Stock farming.

Stock

Used for breeding
A stock mare.

Stock

Of or relating to a stock company or its repertoire.

Stock

Of or being a conventional character or situation that recurs in many literary or cinematic works.

Stock

A store or supply.

Stock

(operations) A store of goods ready for sale; inventory.
We have a stock of televisions on hand.

Stock

A supply of anything ready for use.
Lay in a stock of wood for the winter season.

Stock

Railroad rolling stock.

Stock

A stack of undealt cards made available to the players.

Stock

Farm or ranch animals; livestock.

Stock

The population of a given type of animal (especially fish) available to be captured from the wild for economic use.

Stock

(finance) The capital raised by a company through the issue of shares. The total of shares held by an individual shareholder.

Stock

The price or value of the stock of a company on the stock market.
When the bad news came out, the company's stock dropped precipitously.

Stock

A share in a company.

Stock

(figurative) The measure of how highly a person or institution is valued.
After that last screw-up of mine, my stock is pretty low around here.

Stock

Any of several types of security that are similar to a stock, or marketed like one.

Stock

The raw material from which things are made; feedstock.

Stock

Broth made from meat (originally bones) or vegetables, used as a basis for stew or soup.

Stock

The type of paper used in printing.
The books were printed on a heavier stock this year.

Stock

Ellipsis of film stock

Stock

Plain soap before it is coloured and perfumed.

Stock

Stock theater, summer stock theater.

Stock

The trunk and woody main stems of a tree. The base from which something grows or branches.

Stock

(horticulture) The plant upon which the scion is grafted.

Stock

(by extension) Lineage, family, ancestry.

Stock

Any of the several species of cruciferous flowers in the genus Matthiola.

Stock

A handle or stem to which the working part of an implement or weapon is attached.

Stock

(firearm) The part of a rifle or shotgun that rests against the shooter's shoulder.

Stock

The handle of a whip, fishing rod, etc.

Stock

Part of a machine that supports items or holds them in place.

Stock

The headstock of a lathe, drill, etc.

Stock

The tailstock of a lathe.

Stock

A bar, stick or rod.

Stock

A ski pole.

Stock

(nautical) A bar going through an anchor, perpendicular to the flukes.

Stock

(nautical) The axle attached to the rudder, which transfers the movement of the helm to the rudder.

Stock

(geology) A pipe (vertical cylinder of ore)

Stock

A type of (now formal or official) neckwear.

Stock

A necktie or cravat, particularly a wide necktie popular in the eighteenth century, often seen today as a part of formal wear for horse riding competitions.

Stock

A piece of black cloth worn under a clerical collar.

Stock

A bed for infants; a crib, cot, or cradle

Stock

(folklore) A piece of wood magically made to be just like a real baby and substituted for it by magical beings.

Stock

(obsolete) A cover for the legs; a stocking.

Stock

A block of wood; something fixed and solid; a pillar; a firm support; a post.

Stock

A person who is as dull and lifeless as a stock or post; one who has little sense.

Stock

The longest part of a split tally stick formerly struck in the exchequer, which was delivered to the person who had lent the king money on account, as the evidence of indebtedness.

Stock

The frame or timbers on which a ship rests during construction.

Stock

Red and grey bricks, used for the exterior of walls and the front of buildings.

Stock

(biology) In tectology, an aggregate or colony of individuals, such as trees, chains of salpae, etc.

Stock

The beater of a fulling mill.

Stock

A thrust with a rapier; a stoccado.

Stock

To have on hand for sale.
The store stocks all kinds of dried vegetables.

Stock

To provide with material requisites; to store; to fill; to supply.
To stock a warehouse with goods
To stock a farm, i.e. to supply it with cattle and tools
To stock land, i.e. to occupy it with a permanent growth, especially of grass

Stock

To allow (cows) to retain milk for twenty-four hours or more prior to sale.

Stock

To put in the stocks as punishment.

Stock

(nautical) To fit (an anchor) with a stock, or to fasten the stock firmly in place.

Stock

To arrange cards in a certain manner for cheating purposes; to stack the deck.

Stock

Of a type normally available for purchase/in stock.
Stock items
Stock sizes

Stock

Having the same configuration as cars sold to the non-racing public, or having been modified from such a car.

Stock

Straightforward, ordinary, just another, very basic.
He gave me a stock answer.

Stock

The stem, or main body, of a tree or plant; the fixed, strong, firm part; the trunk.
Though the root thereof wax old in the earth, and the stock thereof die in the ground, yet through the scent of water it will bud, and bring forth boughs like a plant.

Stock

The stem or branch in which a graft is inserted.
The scion overruleth the stock quite.

Stock

A block of wood; something fixed and solid; a pillar; a firm support; a post.
All our fathers worshiped stocks and stones.
Item, for a stock of brass for the holy water, seven shillings; which, by the canon, must be of marble or metal, and in no case of brick.

Stock

Hence, a person who is as dull and lifeless as a stock or post; one who has little sense.
Let's be no stoics, nor no stocks.

Stock

The principal supporting part; the part in which others are inserted, or to which they are attached.

Stock

The wood to which the barrel, lock, etc., of a rifle or like firearm are secured; also, a long, rectangular piece of wood, which is an important part of several forms of gun carriage.

Stock

The original progenitor; also, the race or line of a family; the progenitor of a family and his direct descendants; lineage; family.
And stand betwixt them made, when, severally,All told their stock.
Thy mother was no goddess, nor thy stockFrom Dardanus.

Stock

The handle or contrivance by which bits are held in boring; a bitstock; a brace.

Stock

Money or capital which an individual or a firm employs in business; fund; in the United States, the capital of a bank or other company, in the form of transferable shares, each of a certain amount; money funded in government securities, called also the public funds; in the plural, property consisting of shares in joint-stock companies, or in the obligations of a government for its funded debt; - so in the United States, but in England the latter only are called stocks, and the former shares.

Stock

The block of wood or metal frame which constitutes the body of a plane, and in which the plane iron is fitted; a plane stock.

Stock

Same as Stock account, below.

Stock

The wooden or iron crosspiece to which the shank of an anchor is attached. See Illust. of Anchor.

Stock

Supply provided; store; accumulation; especially, a merchant's or manufacturer's store of goods; as, to lay in a stock of provisions.
Add to that stock which justly we bestow.

Stock

The support of the block in which an anvil is fixed, or of the anvil itself.

Stock

Domestic animals or beasts collectively, used or raised on a farm; as, a stock of cattle or of sheep, etc.; - called also live stock.

Stock

A handle or wrench forming a holder for the dies for cutting screws; a diestock.

Stock

That portion of a pack of cards not distributed to the players at the beginning of certain games, as gleek, etc., but which might be drawn from afterward as occasion required; a bank.
I must buy the stock; send me good cardings.

Stock

The part of a tally formerly struck in the exchequer, which was delivered to the person who had lent the king money on account, as the evidence of indebtedness. See Counterfoil.

Stock

A thrust with a rapier; a stoccado.

Stock

A covering for the leg, or leg and foot; as, upper stocks (breeches); nether stocks (stockings).
With a linen stock on one leg.

Stock

A kind of stiff, wide band or cravat for the neck; as, a silk stock.

Stock

A frame of timber, with holes in which the feet, or the feet and hands, of criminals were formerly confined by way of punishment.
He shall rest in my stocks.

Stock

The frame or timbers on which a ship rests while building.

Stock

Red and gray bricks, used for the exterior of walls and the front of buildings.

Stock

Any cruciferous plant of the genus Matthiola; as, common stock (Matthiola incana) (see Gilly-flower); ten-weeks stock (M. annua).

Stock

An irregular metalliferous mass filling a large cavity in a rock formation, as a stock of lead ore deposited in limestone.

Stock

A race or variety in a species.

Stock

In tectology, an aggregate or colony of persons (see Person), as trees, chains of salpæ, etc.

Stock

The beater of a fulling mill.

Stock

A liquid or jelly containing the juices and soluble parts of meat, and certain vegetables, etc., extracted by cooking; - used in making soup, gravy, etc.

Stock

Raw material; that out of which something is manufactured; as, paper stock.

Stock

A plain soap which is made into toilet soap by adding perfumery, coloring matter, etc.
At the outset of any inquiry it is proper to take stock of the results obtained by previous explorers of the same field.

Stock

To lay up; to put aside for future use; to store, as merchandise, and the like.

Stock

To provide with material requisites; to store; to fill; to supply; as, to stock a warehouse, that is, to fill it with goods; to stock a farm, that is, to supply it with cattle and tools; to stock land, that is, to occupy it with a permanent growth, especially of grass.

Stock

To suffer to retain milk for twenty-four hours or more previous to sale, as cows.

Stock

To put in the stocks.

Stock

Used or employed for constant service or application, as if constituting a portion of a stock or supply; standard; permanent; standing; as, a stock actor; a stock play; a stock phrase; a stock response; a stock sermon.

Stock

The capital raised by a corporation through the issue of shares entitling holders to an ownership interest (equity);
He owns a controlling share of the company's stock

Stock

Liquid in which meat and vegetables are simmered; used as a basis for e.g. soups or sauces;
She made gravy with a base of beef stock

Stock

The merchandise that a shop has on hand;
They carried a vast inventory of hardware

Stock

A supply of something available for future use;
He brought back a large store of Cuban cigars

Stock

Not used technically; any animals kept for use or profit

Stock

The descendants of one individual;
His entire lineage has been warriors

Stock

The handle of a handgun or the butt end of a rifle or shotgun or part of the support of a machine gun or artillery gun;
The rifle had been fitted with a special stock

Stock

The reputation and popularity a person has;
His stock was so high he could have been elected mayor

Stock

A special variety of domesticated animals within a species;
He experimented on a particular breed of white rats
He created a new strain of sheep

Stock

Lumber used in the construction of something;
They will cut round stock to 1-inch diameter

Stock

A certificate documenting the shareholder's ownership in the corporation;
The value of his stocks doubled during the past year

Stock

Any of various ornamental flowering plants of the genus Malcolmia

Stock

A plant or stem onto which a graft is made; especially a plant grown specifically to provide the root part of grafted plants

Stock

Any of several Old World plants cultivated for their brightly colored flowers

Stock

The handle end of some implements or tools;
He grabbed the cue by the stock

Stock

Persistent thickened stem of a herbaceous perennial plant

Stock

An ornamental white cravat

Stock

Have on hand;
Do you carry kerosene heaters?

Stock

Equip with a stock;
Stock a rifle

Stock

Supply with fish;
Stock a lake

Stock

Supply with livestock;
Stock a farm

Stock

Stock up on to keep for future use or sale;
Let's stock coffee as long as prices are low

Stock

Provide or furnish with a stock of something;
Stock the larder with meat

Stock

Put forth and grow sprouts or shoots;
The plant sprouted early this year

Stock

Repeated too often; overfamiliar through overuse;
Bromidic sermons
His remarks were trite and commonplace
Hackneyed phrases
A stock answer
Repeating threadbare jokes
Parroting some timeworn axiom
The trite metaphor `hard as nails'

Stock

Routine;
A stock answer

Stock

Regularly and widely used or sold;
A standard size
A stock item

Common Curiosities

What is the primary goal of managing merchandise?

The primary goal is to maximize sales and profitability through strategic product selection, pricing, and promotion.

Why is stock considered a broader term than merchandise?

Because stock includes all items held by a business, not just those intended for resale, making it a more inclusive term.

Can the terms merchandise and stock be used interchangeably?

While related, they shouldn't be used interchangeably due to the distinct definitions and scopes they cover.

What role does inventory management play in a business's success?

It's crucial for ensuring the right balance of stock to meet sales and operational needs, affecting efficiency and profitability.

What challenges do businesses face in merchandise management?

Challenges include predicting consumer trends, pricing competitively, and managing inventory levels to align with demand.

How does the management of merchandise affect a retail business?

It directly impacts the business's ability to attract customers and generate sales, influencing overall profitability.

Why is it important for businesses to manage their stock levels?

To prevent overstocking or stockouts, which can lead to lost sales or excessive holding costs, impacting overall business performance.

How do businesses benefit from effective stock management?

By optimizing stock levels, they can reduce costs, improve cash flow, and ensure operational efficiency.

How does stock management differ from merchandise management?

Stock management encompasses a broader range of responsibilities, including the oversight of both sales goods (merchandise) and operational supplies.

How do businesses decide what merchandise to offer?

Decisions are based on market research, consumer trends, and profitability analyses to meet demand and maximize sales.

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Author Spotlight

Written by
Tayyaba Rehman
Tayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
Co-written by
Urooj Arif
Urooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.

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