Merchant

For other uses, see Merchant (disambiguation).

Merchants from Holland and the Middle East trading.

A merchant refers to a person who trades in commodities produced by other people in order to earn a profit. A merchant historically referred to anyone involved in business as long as industry, commerce, and trade have existed. The status of the merchant has varied during different periods of history and among different societies. In modern times the term occasionally has been used to refer to a businessperson or someone undertaking activities (commercial or industrial) for the purpose of generating profit, cash flow, sales, and revenue utilizing a combination of human, financial, intellectual and physical capital with a view to fuelling economic development and growth.

A scale or balance is often used to symbolise a merchant

Types of merchant

There are two types of merchant.

* A wholesale merchant

A wholesaler operates in the chain between produce and retail merchant, typically dealing in large quantities of goods. Some wholesale merchants only organize the movement of goods rather than move the goods themselves.

* A retail merchant or retailer

Retailers sell merchandise to end-users or consumers (including businesses), usually in small quantities. A shop- keeper is a retail merchant.

History

Also see History of retail; History of the market place; History of marketing

Phoenician merchants traded across the entire Mediterranean region

Wealthy Roman land-owners were attractive to merchants who called at the farm-gates to buy produce or sell goods

The network of Roman roads was not simply about the expansion of empire, but was also designed to serve the rise of Roman mercantilism

A merchant making up the account by Katsushika Hokusai.

Merchants have existed as long as business, industry, trade and commerce have existed. A merchant class characterized many pre-modern societies. Merchants have been known since markets sprang up in the cities and towns of ancient times. Open air, public markets were known in ancient Babylonia and Assyria. These markets typically occupied a place in the town's centre. Surrounding the market, skilled artisans, such as metal-workers and leather workers, occupied premises in alley ways that led to the open market-place. These artisans may have sold wares directly from their premises, but also prepared goods for sale on market days. In ancient Greece markets operated within the agora (open space), and in ancient Rome the forum. In antiquity, exchange involved direct selling, merchants or peddlers.

The Phoenicians plied their ships across the Mediterranean, becoming a major trading power by 9th century BCE. The Phoenicians imported and exported wood, textiles, glass and produce such as wine, oil, dried fruit and nuts. Their trading skills necessitated a network of colonies along the Mediterranean coast, stretching from modern day Crete through to Tangiers and onto Sardinia. The Phoenicians not only traded in tangible goods, but were also instrumental in transporting the trappings of culture. The Phoenician's extensive trade networks necessitated considerable book-keeping and correspondence. In around 1500 BCE, the Phoenicians developed a phonetic alphabet which was much easier to learn that the pictographic scripts used in ancient Egypt and Mesopotamia. Phoenician traders and merchants were largely responsible for spreading their alphabet around the region. Phoenician inscriptions have been found in archaeological sites at a number of former Phoenician cities and colonies around the Mediterranean, such as Byblos (in present-day Lebanon) and Carthage in North Africa.

The social status of the merchant class varied across cultures; ranging from high status (the members even eventually achieving titles such as that of Merchant Prince or Nabob to low status, as in Chinese culture, owing to the presumed distastefulness of profiting from "mere" trade rather than from labor or the labor of others as in agriculture and craftsmanship.

In the Graeco-Roman world, merchants served the needs of the wealthier landowners. While the local peasantry, who were generally poor, relied on open air market places to buy and sell produce and wares, major producers such as the great estates were sufficiently attractive for merchants to call directly at their farm-gates. The very wealthy landowners managed their own distribution, which may have involved exporting. The nature of export markets in antiquity is well documented in ancient sources and archaeological case studies. Markets were also important centres of social life. In Greco-Roman society, merchants typically did not have high social status, though they may have enjoyed great wealth, and there were exceptions, such as in Syria and Palestine in late antiquity, where merchants did have a high social position.

In Medieval England and Europe, market towns dotted the landscape. Blintiff has investigated the early Medieval networks of market towns and suggests that by the 12th century there was an upsurge in the number of market towns and the emergence of merchant circuits as traders bulked up surpluses from smaller regional, different day markets and resold them at the larger centralised market towns. Peddlers or itinerant merchants filled any gaps in the distribution system.

During the thirteenth century in Europe, businesses became sufficiently enough and permanent to maintain sedantary merchants and agents. Merchants specialised in financing, organisation and transport while agents were domiciled overseas and acted on behalf of a principal. These arrangements first appeared on the route from Italy to the Levant, but by the end of the thirteenth century merchant colnies could be found from Paris, London, Bruges, Seville, Barcelona and Montpellier. Over time these partnerships became more commonplace and led to the development of large trading companies. These developments also triggered innovations such as double-entry book-keeping, commercial accountancy, international banking including access to lines of credit, marine insurance and commercial courier services. These developments are sometimes known as the commercial revolution.

Luca Clerici has made a detailed study of Vicenza’s food market during the sixteenth century. He found that there were many different types of merchants operating out of the markets. For example, in the dairy trade, cheese and butter was sold by the members of two craft guilds (i.e, cheesemongers who were shopkeepers) and that of the so-called ‘resellers’ (hucksters selling a wide range of foodstuffs), and by other sellers who were not enrolled in any guild. Cheesemongers’ shops were situated at the town hall and were very lucrative. Resellers and direct sellers increased the number of sellers, thus increasing competition, to the benefit of consumers. Direct sellers, who brought produce from the surrounding countryside, sold their wares through the central market place and priced their goods at considerably lower rates than cheesemongers.

From 1300 through to the 1800s a large number of European chartered and merchant companies were established to exploit international trading opportunities, for instance the Company of Merchant Adventurers of London, chartered in 1407. A detailed study of European trade between the thirteenth and fifteenth century demonstrates that the European age of discovery acted as a major driver of change. In 1600, goods travelled relatively short distances: grain 5–10 miles; cattle 40–70 miles; wool and wollen cloth 20–40 miles. However, in the years following the opening up of Asia and the discovery of the New World, goods were imported from very long distances: calico cloth from India, porcelain, silk and tea from China, spices from India and South-East Asia and tobacco, sugar, rum and coffee from the New World.

Medieval attitudes toward merchants in the West were strongly influenced by criticism of their activities by the Christian church, which closely associated their activities with the sin of usury.

By the eighteenth century, American merchants, who had been operating as importers and exporters, began to specialise in either wholesale or retail roles. They tended not to specialise in particular types of merchandise, often trading as general merchants, selling a diverse range of product types. These merchants were concentrated in the larger cities. They often provided high levels of credit financing for retail transactions.

In art

Merchants have often commissioned and been the subject of art.

• 
  Portrait of the Merchant Georg Gisze by Hans Holbein the Younger, 1532.
• 
  Sir Thomas Gresham by Anthonis Mor, c. 1560.
• 
  Governors of the Wine Merchant's Guild by Ferdinand Bol, c. 1680.

External videos
Holbein's The Merchant Georg Gisze at Smarthistory.

In architecture

Many buildings have taken their names from their former use as the home or place of business of merchants:

• 
  The Merchant's House, Kirkcaldy.
• 
  Merchant Tower, Kentucky.
• 
  Medieval merchant's house, Southampton.
• 
  Tudor Merchant's Hall, Southampton.

See also

• Businessperson
• Capitalism
• Commerce
• Costermonger
• Distribution
• Entrepreneur
• Free market
• Free trade
• Hawker
• Licensed victualler
• Mercantilism
• Merchant account
• Merchant marine
• Peddler
• Street vendor

References and sources

References

Sources

• Thrupp, Sylvia L. (1989). The Merchant Class of Medieval London, 1300-1500. University of Michigan Press. ISBN 0-472-06072-4.

External links

• The dictionary definition of merchant at Wiktionary
• Media related to Merchants at Wikimedia Commons
• Quotations related to Merchant at Wikiquote