The "merchants" to which this refers is in the context of the Gospel being by Grace through Faith. Those attempting to "purchase" their way to Heaven by their good works, are thus the "merchants". The Harlot (counterfeit "christianity") is a "market" selling all sorts of wares, and that which she sells is a works "gospel".
Salvation is not by works of men, but men are saved to walk righteously. Works are the result of justification not the means of it.