If you have never heard the term “commerce”, then perhaps you are not in business. Commerce is the global exchange of services and products, most often on a large scale, for monetary value. In other words, what we generally think of when we hear the term “commerce” is the exchange of things of value. In the past, commerce has referred to the movement of persons and goods; today, however, it has come to include all interactions of the human mind between people. It also includes any systems used to facilitate interaction of individuals in order to facilitate exchange of things of value, such as marketplaces and telecommunications systems.
The earliest forms of what is commerce were associated with barter trading, which involved the swap of commodities, such as grain and livestock, for other goods. While this type of commerce predated the development of state-led institutions of trading, it gradually fell out of favor as improving methods of trading became available. It was not revived until the advent of the Industrial Revolution in the 18th century, when a greater number of industries became focused on manufacturing things that could be traded internationally.
One of the major developments in what is commerce is the use of the exchange system to facilitate the buying and selling of goods. This system developed because people no longer wanted to travel long distances to buy the things they needed. In fact, they would rather buy something where they are, then go to a distant city or town to purchase what they need. Thus, the market for what is commerce was born.
Another development of what is commerce is the warehousing system. Warehousing helps retailers by providing them with an opportunity to display and sell their wares both domestically and internationally. By using warehousing, retailers have the opportunity to control their supply chains and thereby help control the prices they charge for their goods. This not only helps them control their costs and improve their profit margins, but it also helps them to insulate themselves against fluctuations in the foreign exchange market.
In the early days of what is commerce, goods were transported via ship, wagon, and railway. However, with improvements in technology, more products can now be sold over the Internet. As a result, what is commerce has expanded into the world of ecommerce.
Ecommerce refers to what is commerce when you are doing business on the Internet. The exchange of goods or services online involves consumers and businesses who need to exchange goods or services, rather than having physical presence in each other’s areas. In this type of trading, goods are usually exchanged digitally, rather than through cash. An example of this type of exchange is what is commerce between two Internet users who meet in a chat room or online forum. Although face-to-face interaction is still an important component of what is commerce, ecommerce has made substantial strides toward substituting traditional exchange processes such as bartering and interpersonal face-to-face interactions.
What is commerce continues to evolve as the Internet becomes increasingly populated. Businesses will continue to explore ways to conduct business online. There are at least six basic types of online transaction that businesses can use to engage in business-to-business transactions:
As more businesses conduct their business online, what is commerce has expanded to include activities beyond the traditional business-to-business exchanges. Online marketing, hosting and domain registration, media buying, and distribution processes are all aspects of what is commerce that have become online. Consumers who conduct business online are no longer bound by geographical barriers. All of these elements form the basis for what is commerce.