Types of trade

The word commerce comes from the Latin “commercium”, which gives it the meaning of exchange or transaction that takes place between two entities , be they people or businesses, to sell and buy a product or service and in which through a monetary value action is specified. That is, trade is considered the economic activity that allows the exchange of goods and/or services with money.

Physically it is called commerce when in a given place there are several merchants who promote their products or services and as a result of this the purchase and sale is generated, achieving that people interested in their products or services satisfy their needs.

From the historical point of view this activity dates back to the Neolithic period and in it we find as a central activity that defines it as such, the exchange that was made between individuals of the products harvested in the primary activity of agriculture. With the passage of time and before the dominance of other activities such as livestock and fishing, the activity of trade became more complex, reaching what was known as barter.

Types of trade

Depending on where it is done

Internal trade

This is the name given to all that trade that, as an economic activity, is carried out within national sovereignty, that is, within a country. For this reason, commercial activity is regulated by the government through a series of laws and regulations so that it is carried out within an atmosphere of formality and legality.

In the case of this type of trade, the products and/or services that are involved are generally of a national nature, that is, they are carried out within the country by people of said nationality. And they go through the entire value chain process, that is, from manufacturing to the consumer, through various distribution channels to the final point of sale.

Types of internal trade

wholesale trade

This refers to when the volume of products that are exchanged are large and are made within certain stages of the value chain or distribution channel, that is, it is an exchange between suppliers and such product does not reach the final consumer. The sector that is most involved at this point is the manufacturing sector that seeks to transform the goods it obtains into a finished product.

Retail trade

It is a modality of internal trade in which it intervenes in the exchange of goods at a low-scale quantity. In this case, most of the time the final product is purchased by the final consumer. A direct and unit sale is then made.

Foreign trade

In this case, the purchase and sale of products or services is managed between groups involved in the trade of various countries, depending on the case. It can occur between the private and/or public sector, depending on the marketing needs.

The main activity carried out in this modality is known as the export and import of products, as appropriate, and where the purchase and sale of products is involved.

Types of foreign trade

Export trade

It is called like this when certain products or services arrive in a country from another external country. That is, national products reach foreign markets.

Import trade

The operation occurs in the opposite way, that is, the country in question buys products or services from another country.

Types of trading by brokers

Wholesale trade

This is the name given to commercial activity in which the volume of products is high, normally carried out in the value chain and/or distribution channel, without reaching the final consumer or direct point of sale.

Retail commerce

This activity is thus defined when the exchange of products is done on a smaller scale, that is, between a merchant and the final consumer and in small quantities. It is the type of trade in which the activity of the seller is very important.

Electronic commerce

Thanks to the advancement of technology, a new possibility and format was opened to make sales using the Internet itself as a sales and marketing platform. And today it is generating exponential growth. Amazon was the pioneer company in this area.

Types of electronic commerce

Mobile commerce

In it, the mobile device intervenes to carry out a purchase-sale, it works both as a form of contact and marketing.

Consumer to business

This type of electronic commerce occurs when a person wishes to acquire a product or service and expresses it through social networks; the company captures that need and contacts that prospect to offer its goods or services and thus a commercial activity is contracted.

Consumer to consumer

Using the Internet to communicate from the home community, a kind of garage sale is carried out and therefore the law of price supply and demand intervenes directly.

Business to business

Two or more companies intervene in this exchange of goods that search the Internet for the necessary inputs to make their final product, thus reducing costs, if possible, encouraging price and quality competition among potential suppliers.