The basic difference between manufacturing and merchandising companies is the completion level of the products they purchase for resale to customers.

Manufacturing Companies

Manufacturing companies are businesses that produce physical goods from raw materials using various processes, machinery, and operations.

Merchandising Companies

Businesses that purchase goods in finished form for the purpose of reselling them to customers without further processing.

Resale

Resale refers to the process of selling a previously purchased product, generally used or surplus items, to another buyer.