A merchandising business buys merchandise (goods) at a wholesale price and resells the goods at a retail price. Therefore, a merchandiser is both a buyer and seller. In this lesson, you will learn the differences between purchasing and selling transactions. It is important to note the difference between the terms cost and price. These terms are used from the merchandiser's perspective. The cost is the amount the merchandiser pays for goods. The sales price is the amount the merchandiser charges its customers.