Could You Define Commerce And Its Types.


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Sajid Majeed Profile
Sajid Majeed answered
It includes all those activities, which are related to the transfer of goods from the place of production to the final consumers, at the right time, at the right place, in the right quantity and at the right price. Commerce can be divided into two parts.
Those are trade and aids to trade.
Trade means exchange of goods between individuals and groups for money. Trade is of two types.
Home Trade or Internal Trade:
Trade within the borders of the country is known as home or internal trade. Home trade is of two types.
Purchase of goods in large quantities from producers and their sale to the retailers is known as whole sale trade.
Purchase of goods from the wholesaler and their sale to the ultimate consumer is known as retail trade.

Foreign Trade or External Trade:
Trade between two countries is known as foreign or external trade. There are two types of external trade.
Buying goods from other countries is known as import.
Selling goods to other countries is known as export.

Aids to Trade:
The activities that facilitate the trade are known as aids to trade. It has follow types.
Banking: Commercial banks play an important role in financing various activities of trade.
Insurance: Insurance is another important aids to trade. The risk of damage of goods due to fire, flood etc is covered by insurance.

Transport: The different means of transport like railways, ships, airlines etc help in the transfer of goods from their place of production to the ultimate consumer.
Warehousing: Goods more than market demand are stored, hence warehousing is another aids to trade.

Advertisement: Now a day's advertisement is the biggest source of selling goods.
Agents: The agents are responsible for the completion of transfer, exchange or sale of goods from manufacturer to the ultimate consumer.
Anonymous Profile
Anonymous answered
"Commerce is the sum total of all those processes engaged in the removal of hindrances of person,place,time and money ".
Anonymous Profile
Anonymous answered
E-commerce is the use of Internet and the web to transact business but when we focus on digitally enabled commercial transactions between and among organizations and individuals involving information systems under the control of the firm it takes the form of e-business. Nowadays, 'e' is gaining momentum and most of the things if not everything is getting digitally enabled. Thus, it becomes very important to clearly draw the line between different types of commerce or business integrated with the 'e' factor.  There are mainly five types of e-commerce models:  1. Business to Consumer (B2C) - As the name suggests, it is the model involving businesses and consumers. This is the most common e-commerce segment. In this model, online businesses sell to individual consumers. When B2C started, it had a small share in the market but after 1995 its growth was exponential. The basic concept behind this type is that the online retailers and marketers can sell their products to the online consumer by using crystal clear data which is made available via various online marketing tools. E.g. An online pharmacy giving free medical consultation and selling medicines to patients is following B2C model.  2. Business to Business (B2B) - It is the largest form of e-commerce involving business of trillions of dollars. In this form, the buyers and sellers are both business entities and do not involve an individual consumer. It is like the manufacturer supplying goods to the retailer or wholesaler. E.g. Dell sells computers and other related accessories online but it is does not manufacture all those products. So, in order to sell those products, it first purchases them from different businesses i.e. The manufacturers of those products.  3. Consumer to Consumer (C2C) - It facilitates the online transaction of goods or services between two people. Though there is no visible intermediary involved but the parties cannot carry out the transactions without the platform which is provided by the online market maker such as eBay.  4. Peer to Peer (P2P) - Though it is an e-commerce model but it is more than that. It is a technology in itself which helps people to directly share computer files and computer resources without having to go through a central web server. To use this, both sides need to install the required software so that they can communicate on the common platform. This type of e-commerce has quite low revenue generation as from the beginning it has been inclined to the free usage due to which it sometimes got entangled in cyber laws.  5. M-Commerce - It refers to the use of mobile devices for conducting the transactions. The mobile device holders can contact each other and can conduct the business. Even the web design and development companies optimize the websites to be viewed correctly on mobile devices.  6. Consumer to Business (C2B): In today’s E-commerce arena, it is growing trend wherein consumers demand specific products or services from respective businesses. For example: I contact a tour and travel operator via their website for purchasing a holiday package.  Consumer to business E-commerce is growing at a rapid pace and the trend is set to continue in the future.

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