What Is Commerce

Any exchange of goods and services for a certain value is termed as commerce. Any commodity that is exchanged for money, it can be a product or service is called commerce transaction. Sometimes it can also exchange of goods for goods which is also included in commerce. These transactions may not happen physically also, these days most of the transactions happen on the net. Hence it can also be termed as ecommerce.

In earlier days there used be something called exchange of excess goods with other individuals for goods itself. Such a kind of trade is called barter system of commerce. After a few decades this system did not yield the necessary result, because one individual needs varies with the other’s needs. Hence they opted for money in exchange for goods and services. This gave rise to a system called commerce trading.

In earlier days trade could happen only face to face, but technological advancement has made commerce to happen through internet which is advantageous in its own ways. Even transportation has made a big difference in trading today. This has made people to trade from faraway places instead of going and meeting them personally. This helps in saving time and money, the money spent on the individual travelling can be put to use in transporting the goods and services.

The advancement of trading has come a long way when we talk about the money involved in the exchange of goods. Today there a common form of currency that is used in trading. It can be paper money or transfer of money from one account to another. It has become much easier for traders to sell their goods and services even on credit system on an agreement that is written with terms and conditions.

Recent years the term commerce is replaced by ecommerce, this involves carrying out transactions electronically. It is not only prevalent in the field of trade but also in supply chain management, banking transactions, online shopping etc. this has made trading and commerce quick and easy. The advantages of ecommerce are that it helps the individual or companies to know the global market. Since internet helps in knowing vast information and that too very quickly.

The individual can cater to the needs of both domestic and international market, thereby spreading his or her company globally. There is no time restriction for the transactions to happen since internet is 24/7, this helps the traders to sell or purchase at any given point of time. Ecommerce not only helps the traders but also the customers to take a look at the goods and services before buying them. By this way they can look for cheaper and at the same time good quality products.

Every technological has some limitations also. For example in India the use of ecommerce is very limited, because people from the rural areas may not have the required knowledge in the use of internet. Another main limitation of ecommerce is that it is not suitable for perishable goods. To overcome such issues a proper strategy should be in place to sort them out and make them effective.