What are the Different Types of Commerce

What are the Different Types of Commerce

Goods produced by an industry should be distributed in time to the appropriate market either by the producer himself or through any middleman. It is commerce, which makes the entire management for the distribution of goods with the help of necessary services. Hence, commerce is the process of distribution of goods in different places. It is an organized system of buying and selling goods, its transportation, insurance, banking, warehousing and communication etc. between the trading parties. Commerce is divided as trade and auxiliary services.


Trade refer to the purchase and sale of goods between the parties. It is the process by which goods are transferred from the producers to the customers and consumers along with their ownership.

Home trade

The trade, which is dealt within the boundary of one country is known as home trade. It is also of two types wholesale trade and retail trade. 

Wholesale trade is the one which deals with a large quantity of goods by purchasing from the producers or authorized suppliers and selling them to the retailers. 

Retail trade is that in which goods are bought from wholesales and sold to the ultimate consumers. 

Foreign Trade

The trade, which is dealt between two or more countries, is known as foreign trade. The buying and selling the goods in the foreign trade are termed as import and export. Hence, foreign trade is further divided into import and export trade.
Import trade implies to the purchase of goods from a foreign country. The purchasing act is known as import and the party importing goods is known as importer. 
Export trade implies to the sale or supply of goods to a foreign country. The selling act is known as export and the party exporting the goods is known as exporter.

Auxiliaries of Trade

Auxiliaries of trade refer to the integration of all the agency services, which facilitate the distribution of goods and services. The following are the important auxiliaries of trade and industry. 

Advertising and Publicity

Advertisement and publicity let the customers know about the goods or services. It can draw their attention towards the products and thus promotes the trade dealing in the wider coverage.


It is a way of storage of goods, which protects them from losses, fire, theft etc. on one side and creates time utility on the other. Some goods are produced seasonally but demanded throughout the year. They should be stored so that they can be supplied when demanded. Thus, warehousing promotes trade activities by providing storage facilities for the goods. 


Insurance is a way of transferring business risks to an agency in consideration of the payment of a certain premium. There may occur any sort of financial loss in production, storage, carriage etc. It is insurance, which assures the recovery of financial loss and promotes and develops trade activities.

Banking and finance

Banks and financial institutions frequently provide capital in terms of loan under different terms and conditions. Banks also provide agency services like credit guarantee, remittance of money etc. to the business parties. In this way, banking service is an important auxiliary service to commerce.


Trade is an act of distribution of goods from producers to ultimate consumers. It is transportation, which delivers the goods up to the various consumers from the manufacturers. Many carrier companies is private as well as public sectors are in operation for the transportation of the goods. It plays a significant assistance in promoting trade.


It is a process of transmission of information among persons and places. With the development of communication network, the world has become a small village. Most of the business communication is made through various means like correspondence, radio, television, telephone, fax, e-mail, internet etc. and most of the trade dealings are performed by way of such communication. Thus, communication is an important aid for trade and commerce.

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