What is a merchant?
A merchant is a person or business that sells products or services to make a profit. Merchants can sell directly to customers (as retailers) or to other businesses (as wholesalers). Learn about becoming a merchant with Print on Demand and starting a print-on-demand business.
Types of merchants
Merchants come in different forms depending on how and where they sell products. Each type plays a specific role in the supply chain – whether selling directly to customers as a retailer, supporting other businesses through wholesale distribution, or promoting products online.
Here’s how the main merchant types compare:
| Merchant type | What they do | Where they sell | Key responsibilities |
| eCommerce merchant | Sell goods or services online | Storefront websites like Shopify or online marketplaces like Etsy | Managing online storefronts, processing payments, handling order fulfillment, and running digital ads |
| Retail merchant | Buy from wholesalers and sell to end customers | Online or physical stores | Stocking shelves or catalogs, setting retail prices, offering customer support, managing returns |
| Wholesale merchant | Buy in bulk from manufacturers and sell to retailers | Warehouses, business-to-business (B2B) platforms, dropshipping setups | Negotiating with manufacturers, setting bulk pricing, overseeing storage and shipping logistics |
| Affiliate merchant | Offer an affiliate program to promote its own products or services and increase sales | Website, online store, affiliate networks | Setting up an affiliate program, providing creatives and tracking links, managing affiliate payouts, fulfilling orders from affiliate-driven sales |
Real-world examples of merchants
Here are some examples of different types of merchants that many of us know and maybe even buy from.
- Best Buy is a retail merchant that buys electronics from manufacturers like LG and resells them to end customers.
- Sysco is a leading wholesaler of food products, distributing in bulk to restaurants, healthcare facilities, and hospitality businesses.
- Printify is an eCommerce and affiliate merchant. It partners with supply and production partners to offer print-on-demand products and services to online retailers. Its affiliate program offers people the chance to earn commission from signups.
- Amazon operates as both a retailer (selling products directly) and a marketplace that supports other merchants, including wholesalers, manufacturers, and retailers. It also runs an affiliate program that enables affiliate merchants to earn commissions on sales.
These examples show how merchants can overlap roles depending on how they source, sell, and distribute products and services.
What’s a merchant account, and how do I get one?
A merchant account is a special type of bank account that lets businesses accept credit and debit card payments online or in-store. It temporarily holds customer payments before transferring the funds into your business bank account.
You can get a merchant account in two ways:
- Through a payment processor (e.g., First Data, Chase, Worldpay). They create a dedicated merchant account for your business.
- Through a payment service provider (e.g., Stripe, PayPal, Square). They simplify the process by grouping you under their master merchant account, so you don’t need to set one up separately.
How to get a merchant account:
- Choose a provider (traditional processor or a PayFac like Stripe, PayPal, Square).
- Provide your business and banking details.
- Undergo a basic credit and fraud check (lighter with PayPal/Stripe/Square).
- Connect the account to your eCommerce platform.
- Start accepting payments securely.