contraband vs merchandise

contraband and merchandise both are nouns.

Word	Noun	Adjective	Verb	Adverb
contraband	Yes	Yes	No	No
merchandise	Yes	No	Yes	No

As nouns, merchandise is a hypernym of contraband; that is, merchandise is a word with a broader meaning than contraband:

contraband: goods whose importation or exportation or possession is prohibited by law
merchandise: items for sale to the individual consumer

Other hypernyms of contraband include product, ware.

contraband (noun)	merchandise (noun)
goods whose importation or exportation or possession is prohibited by law	items for sale to the individual consumer
	branded products meant to promote another product, especially films and pop groups

contraband (adjective)	merchandise (adjective)
distributed or sold illicitly

contraband (verb)	merchandise (verb)
	engage in the trade of