What do we call businesses that sell similar or identical products?

Businesses that sell similar or identical products are referred to as competitors. This term captures the essence of the competitive nature of the marketplace, where different businesses vie for the same customers by offering comparable products or services. The presence of competitors can drive innovation, improve product quality, and keep prices in check, ultimately benefiting consumers.

In contrast, partners typically refer to businesses that collaborate or work together towards common goals rather than compete against each other. Distributors are entities that facilitate the distribution of products from manufacturers to retailers or consumers, but they do not primarily compete with one another in terms of product offerings. Merchants can refer to businesses that buy and sell goods, but this term is broader and does not specifically indicate that they offer similar or identical products as competitors do. Therefore, the most accurate term for businesses that are in direct competition by selling similar items is competitors.