In this article, we will list and explain the importance of commerce, and the meaning of commerce.
What Is Commerce
Commerce is a branch of business in charge of the exchange of goods and services between two or more entities.
In general, it involves the buying and selling of things of value between consumers, agents, or entities.
Almost all business transaction is in form of commerce. No one is self-sufficient and no one can survive without commerce.
Selling of goods in a store, hospital services, hotel services, buying and selling in a restaurant, and other day-to-day activities all revolve around commerce.
Therefore, the importance of commerce cannot be over-emphasized. Below we will explain the importance of commerce.
Types Of Commerce
There are four types of commerce. They are explained below;
Business To Business (B2B)
In this type of commerce, the business services are being provided to other businesses.
Business does not provide their services directly to the consumers rather they sell the raw materials to other companies and process them and then sell them to the consumers.
Business To Consumer (B2C)
Here in this type of commerce, a business sells its products directly to the consumer for consumption.
This is the traditional way of commerce.
Consumer To Consumer (C2C)
Another type of commerce that is important is the consumer to consumer commerce.
Here consumers sell their products and services directly to other consumers. This works very well for consumers who want to get a used product.
An example is the purchase of a fairly used product from a user.
Consumer To Business (C2B)
Just as the name implies, this involves the selling of these goods and services from the consumer back to the business.
It is the best preferred method when the company needs to get feedback from the people.
Importance Of Commerce
There are many reasons why commerce is important but we will look at some of them in this article.
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Commerce Help In Improving Human Wants
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Commerce Links The Consumers And The Producers
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Commerce Creates Lots Of Job Opportunities
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Commerce Helps To Increase Our Standard Of Living
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Commerce Increase The Nations Economy And Wealth
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Commerce Helps In Growth Of Industrial Development
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Commerce Improves International Trade
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Commerce Enhances The Development Of Local Markets
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Commerce Benefits Underdeveloped Countries
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Commerce Provide Storage Facilities
Commerce Help In Improving Human Wants
The wants of humans continue to increase every day. Commerce has in one way or the other improved the needs of humans.
Presently, you can stay anywhere in the world and buy any product you want from any one location to the other.
This improvement in the distribution of goods is possible because of commerce.
Commerce Links The Consumers And The Producers
Commerce brings together the consumer and the producers. There are no goods produced in this world that are not in one way or the other that are not used or consumed by humans.
Commerce links the consumer and producers through retailers and wholesalers. Consumers get to know what the manufacturers produced through adverts.
Commerce Creates Lots Of Job Opportunities
The increasing growth of the commerce industry is due to expansion in advertising, warehouses, communication, technology, and so on.
And for all these to expand, it needs an increase in the hands-on deck. Therefore, it creates employment for more people.
Commerce Helps To Increase Our Standard Of Living
Another importance of commerce is that it helps increase the quality of living in society.
Commerce helps to secure any time of goods you want and at any time you want them.
And with technology, you can stay in the comfort of your home and get whatever goods you want without going to the goods.
Commerce Increase The Nations Economy And Wealth
The economy of the nation will continue to increase as long as there is an increase in the production rate of a company.
If the manufacturing companies in the nation are in charge of up to 80% of the Nation’s economy, then the nation earns foreign exchange by exporting goods and services.
Therefore with commerce, there is an increase in the economy of the Nation and wealth of the Nation.
Commerce Helps In Growth Of Industrial Development
With the presence of buying and selling industries will find it difficult to continue with the pace of production.
Commerce helps in supplying goods on demand and also making raw materials for industrial development and production possible.
Commerce Improves International Trade
With commerce, there is the availability of goods and services all over the country.
And with technology and transportation, nations can distribute their surplus goods and services in return gets foreign exchange.
It facilitates international trade.
Commerce Enhances The Development Of Local Markets
Another importance of Commerce is that it improves the development of the local market.
Before an industry or a Nation is set to export products that have been processed, they will be sure to test these goods by selling them within their province.
This helps the local market where these goods are brought to develop faster by attracting outsiders to come there and purchase these goods.
Commerce Benefits Underdeveloped Countries
Developed countries seek underdeveloped countries for raw materials while the underdeveloped countries seek skilled labor from developed countries.
This help in improving the foundation of industries in underdeveloped countries.
Commerce Provide Storage Facilities
Foodstuffs, medicines, and other essential requirements need to be stored for future purposes.
During crises or emergencies like floods, insurgencies, or other unforeseen problems, commerce makes these storage facilities come in handy.
Conclusion On Importance Of Commerce
This article on the importance of commerce has helped us realize the need for more education on commerce in Nigeria and the impact it plays in our life on a daily basis.
Do not forget to share and comment in the comment section and also ask questions.
