Merchant

What is a merchant?

A merchant is an individual or business that sells goods or services in exchange for payment. Merchants operate in stores, online, or both. To process payments, they often set up a merchant account with a provider that connects them to payment gateways and card networks.

At Printful, merchants are ecommerce store owners who sell custom products through platforms like Shopify, Etsy, and WooCommerce, using Printful to fulfill orders.

What do merchants do?

Merchants typically:

• Sell goods or services to customers

• Accept payments (credit cards, bank transfers, digital wallets)

• Manage pricing, inventory, and customer service

• Sell either direct-to-consumer (B2C) or business-to-business (B2B)

In ecommerce, merchants also run online stores, manage product listings, launch marketing campaigns, and often partner with dropshipping or print-on-demand services like Printful.

Types of merchants

Common merchant categories:

• Retail merchants: Sell directly to end consumers (online or in-store)

• Wholesale merchants: Sell bulk products to other businesses

• Online merchants: Operate entirely through ecommerce platforms

• Service merchants: Sell expertise, services, or experiences

• Omnichannel merchants: Combine physical and online sales

What is a merchant account?

A merchant account is a bank account that allows businesses to accept credit and debit card payments. It works with a payment gateway to securely authorize transactions and transfer funds to the merchant’s business bank account.

Merchant account providers often include features like fraud protection, transaction reporting, and multi-currency support.

What is an example of a merchant?

To understand the merchant meaning in practice, imagine a small online store owner who sells custom t-shirts through Shopify using Printful for fulfillment. This merchant uses a merchant account (or a processor like Stripe or PayPal) to accept payments, process transactions, and deposit funds into their business account.