The Collaborative International Dictionary of English v.0.48:

Merchandise \Mer"chan*dise\, v. i. [imp. & p. p. Merchandised;
   p. pr. & vb. n. Merchandising.]
   To trade; to carry on commerce. --Bacon.
   [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

merchandising \mer"chan*dis`ing\, n. (Commerce)
   The activities associated with selling products, such as
   identification of the market[7], advertising at the right
   time in the right media[7], and creating attractive packaging
   and displays; also, the study of the best methods to
   accomplish such goals.
   [PJC]

WordNet (r) 3.0 (2006):

merchandising
    n 1: the exchange of goods for an agreed sum of money [syn:
         selling, merchandising, marketing]