Merchants

Merchants are individuals or corporate entities that engage in the purchase and sale of goods for profit. They operate across wholesale, retail, and midstream trading, and may act as intermediaries, brokers, or agents who arrange exchanges between producers and customers. The term derives from Latin mercari and Old French marchand, and has long been associated with the commercial class essential to urban economies.

Historically, merchants facilitated long-distance exchange and the movement of goods before standardized markets and modern logistics. In ancient Mesopotamia and Greece, merchant households traded spices, metals, and textiles. During the Roman era, markets and caravan routes linked distant regions. In medieval Europe, guilds regulated trade practices and urban merchant life supported the growth of towns. In many regions, merchant activities contributed to the development of price systems, credit, and commercial law.

Merchants vary by function: wholesalers buy in large quantities for resale to retailers; retailers sell to end consumers; commission merchants trade on behalf of others; and merchant financiers provide trade credit. Common duties include sourcing products, pricing, negotiating terms, arranging transportation, managing risk, and maintaining relationships with customers and suppliers.

Economically, merchants enable specialization and efficient distribution, influencing price formation and access to goods. They are subject to laws and regulations—licensing, consumer protection, taxation, and trade standards—and may adopt ethical practices such as fair trade and transparency in sourcing.

Today, the term encompasses traditional retailers, wholesalers, and online merchants operating on platforms, marketplaces, or direct-to-consumer models. Globalization and digital commerce have transformed merchant activities, emphasizing digital storefronts, cross-border logistics, and data-driven marketing, while regulators continue to address consumer rights and supply chain integrity.