yard goods vs merchandise

yard goods and merchandise both are nouns.

Word	Noun	Adjective	Verb	Adverb
yard goods	Yes	No	No	No
merchandise	Yes	No	Yes	No

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

Other hypernyms of yard goods include product, ware.

yard goods (noun)	merchandise (noun)
merchandise in the form of fabrics sold by the yard	items for sale to the individual consumer
	branded products meant to promote another product, especially films and pop groups

yard goods (verb)	merchandise (verb)
	engage in the trade of