There are a number of souvenir shops that sell Mongolian made goods like hand woven carpets, leather and woolen clothing, furs, cashmere, camel hair products, Mongolian oil and water paintings, and wooden toys, puzzles and games. The most popular items are paintings, antiques, handicrafts, carpets, books, cashmere, traditional Mongolian clothing, leather goods, wall hangings, puzzles, and postcards, snuff bottles and woodcarvings. The food markets are well stocked on Mongolia, Russian, East and West European products although they may be a little more expensive than you expect. Many of the shops throughout Mongolia are in fact small kiosks within larger shops.
You will find that many shops sell the same things so you’ll have to look hard to find exactly what you want. Along the streets of Ulaanbaatar you will find many ‘Tuuts’, small kiosks that sell snacks and general provisions. The most adventurous traveler may wish to go out to the infamous “black market”, which is a giant flea market on the outskirts of Ulaanbaatar. Almost anything can be bought at this market, which is always very crowded.
There are many duty free shops where convertible currencies are acceptable. Wide range of goods may be bought for foreign currency at favorable prices; typical Mongolia souvenirs, wines, furs, garments in cashmere, camel wool blankets, national costumes, boots, jewelry, carpets, books, records, horns, etc. In all other local shops local currency must be used.