MEANING OF COMMERCE
Commerce is dealing with buying and selling of products. In simple words, Commerce is an exchange of goods and services usually in money. Commerce is a widely used all around the world. Commerce works in millions of different forms, like when we buy something in local stores, Companies produce products for sale, some companies provide services to us etc. These all and many more examples of commerce are present in our world. Commerce has a wider range. This is existing from our daily routine to big or large scale dealing.
ELEMENTS OF COMMERCE
There are basically three elements in commerce, which are involved everywhere. These elements are:
1) BUYERS – These are the people, who want to purchase goods and services with the exchange of money. We consider the buyer as first elements of commerce because in the absence of buyer, other elements are worthless.
2) SELLERS- These are the people, who offered goods and services to the buyer for the exchange of money.
Sellers are also classified into two different forms:
- WHOLESALERS- Wholesalers are also known as distributors. They worked as middle man between producers and retailers/customers. So, wholesalers sell the product to retailers and other businesses.
- RETAILERS- Retailers are those who sell the product to the consumers. Retailers have direct contact with the consumer of the product.
3) PRODUCERS- Producers are those who create/made the product ( from row material) and provide services to the buyers.
These are some basic element which describe how commerce works. So, basically this is an exchange of goods and services with money.
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