Commerce

Commerce is the broad system through which goods and services are exchanged between buyers and sellers. It includes the activities and institutions that facilitate production, distribution, and consumption, such as marketing, transportation, banking, insurance, law, and regulatory oversight. Commerce covers the physical trade of goods, services, and digital products across local, national, and international markets, and operates through various forms, including retail, wholesale, and online platforms.

Historically, commerce began with barter and evolved with money, standardized weights and measures, and increasingly complex financial systems. The expansion of trade routes, industrialization, and globalization expanded the scale and speed of commercial activity. In recent decades, electronic commerce has transformed how transactions occur, enabling direct consumer sales, cross-border trade, and 24/7 marketplaces.

Key components include supply chain management, logistics, procurement, payment systems, risk management, and regulatory compliance. Market participants range from producers and wholesalers to retailers and consumers, with intermediaries such as brokers and marketplaces shaping transaction flows. Distinctions include wholesale versus retail, business-to-business (B2B) versus business-to-consumer (B2C), and consumer-to-consumer commerce.

Economically, commerce allocates resources, supports specialization, and contributes to gross domestic product and employment. It can raise welfare through efficiency and competition but may raise concerns about market power, consumer protection, data privacy, taxation, and environmental impact.

Measurement and policy considerations include trade flows, retail sales, and sectoral contributions to GDP, with trade balances and market concentration tracked by regulators. Technology and platforms—digital payments, fintech, logistics analytics, artificial intelligence, and blockchain—affect pricing, matching, and delivery efficiency.