Commerce- chapter 1

What is trade?

• The buying and selling of goods and services to earn a profit.

• Trading can only occur if money is involved in the exchange of goods and services.

What is commerce?

• Supporting the exchange of goods and services and providing services to make the process of exchange more efficient.

What is the difference between trade and commerce?

• Trade is the actual buying and selling of goods and services to earn a profit, whereas commerce refers to the activities that support the exchange of goods and services by providing services that make the process of exchange more efficient.

What are goods?

• Tangible products that have a physical presence and can be touched.

Whats are services?

• Intangible products with no physical identity. They cannot be stored for later use and cannot be sensed though touch.

What is profit?

• The amount of money that a business earns. It is calculated by subtracting the money it has spent from the total income.

What is bartering?

• The exchange of goods and services without money. Bartering is not trade.

What is home trade?

• The buying and selling of goods and services within the boundaries of a country.

• Home trade involves wholesalers and retailers.

State a benefit of home trade.

• Home trade usually supports personal relations between the business and customers as the owner is likely to have a good knowledge of the market.

What are the methods of transport used in home trade?

• Road, rail or occasionally air (depending on the size of the country)

What is transport?

• The movement of goods, raw materials, equipment and people from one place to another.

What is currency?

• A country’s system of money used to buy and sell goods and services.

What is a wholesaler?

• A person or business that buys products in large quantities from suppliers (often the manufacturer of the product) and sells them to retailers and/or other businesses in smaller quantities.

What is a retailer?

• A person or business who buys products from a manufacturer or wholesaler to sell on to consumers.

What is ecommerce?

• The buying and selling of goods and/or services over the internet/websites.

• The term is short for electronic commerce.

why is the growth of ecommerce beneficial?

• The growth of ecommerce has broken down the geographical restrictions that prevented many businesses from operating outside their local area.

What is the distribution channel?

• The path that the product takes from the initial producer to the final costumer.

• The distribution channel is made up of all of the businesses involved in movement of a good or service to the final customer.

What is the chain of distribution?

Manufacturer/producer

⤸

Wholesaler

⤸

retailer

⤸

costumer

what is a producer?

• The business who manufactures the product

What is a manufacturer?

• The producer of the product.

What is a consumer?

• The final user of the product.

What are the different ways that retailers sell their products?

• a Physical shop

• Hawker

• Pedlar

• Kiosk

• A website (operated by the retailer or a third party)

• An online auction website

• Social media

• Telesales

What is a hawker?

• A mobile salesperson who carries the goods they sell using a cart or the back of an animal.

What is a pedlar?

• A mobile salesperson who carries the goods they sell door to door on their own head or back.

What is a kiosk?

• A small structure with one or more open sides from which items are sold, such as newspapers , tickets or refreshments.

what is a tuck shop?

• A small outlet located within another building, such as a school, that sells a limited range of goods, such as refreshments.

What is an online auction website?

• Where items are sold by auction over the internet.

• Sellers present the goods for sale on the online auction website, and individuals can bid the price for which they would purchase the product.

• The product is usually sold to the person who offers the highest bid to buy.

What is social media?

• Online communication channels, such as Facebook, that allow users to create, share and exchange information, pictures and videos.

What are telesales?

• The selling of goods and services over the telephone.