the nature and scope of commerce.pptx

its about commerce

1. Nature and Scope of Commerce By Mam Bushra

2. Barter system: A barter system is an old method of exchange. This system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return. Without using any medium of exchange. Constraints of barter system: Lack of double coincidence of wants. Non existence of common measure of value. Lack of direct contract between buyer and seller. Lack of surplus stock. Historical background of commerce

3. What is Commerce Commerce is a process of exchanging goods and services. It includes all the activities which are directly or indirectly involves the exchanges. Commerce is a branch of business . Commerce includes the distribution process of the products from manufactures to the consumers. According to James Stephenson , “Commerce is an organized system for the exchange of goods between the members of the industrial world.”

4. TYPES OF COMMERCE

5. 1- Business- to- Business (B2B) Business to Business commerce means, there a business provides their services or products to other business. Business does not provide services or products directly to consumers. they supply their raw material to another business, and they build the products and then sell to the consumers Example: Intel makes microchip for Dell, Samsung makes Apple mobile display

6. 2- Business- to-Consumer (B2C) Business to Consumers e- commerce process means when Business sells its products and services to the consumers directly. It is the most preferred method of e- commerce. B2C is a traditional method of commerce, But e- commerce is on the internet. Examples : Newegg.com, Overstock.com, Amazon.com

7. 3- Consumer- to-Consumer (C2C) Consumer to Consumer means when consumer sells their products or services directly to another consumer. it is the best platform for those consumers who want to get used products. Consumer to business means when consumers sell their products or services to the business. it is best- preferred method when the company needs to get feedback of the people. Example: Olx.com, Quicker.com

8. commerce plays an important role in the distribution of goods. It makes available to the users goods produced in different parts of a country as well as from other countries. People are able to buy goods produced anywhere in the world. The producers are relieved of the problem of marketing the goods and can concentrate on increasing production Commercial activities break the barrier between producers and consumers. Commerce ensures a free and smooth flow of goods from producers to consumers. Commerce provides the advantages of specialization. It helps to better satisfy human wants by collecting and distributing goods. Importance of Commerce

9. Commerce provides the necessary link between the producers and consumers of goods. It has brought countries close to one another and the world has become one big market. Large scale production is impossible without modern commerce. The basic aim of commerce is to ensure the supply of right goods at the right time at the right place and to right persons. Commerce brings goods to the hands of ultimate consumer. Importance of Commerce (cont.)

10. Hindrance of commerce: Hindrance of person (wholesalers to consumers) Hindrance of place (Transport types) Hindrance of time (willingness to buy) Hindrance of risk of loss (Calamities) Hindrance of knowledge (Communication + Innovation) Hindrance of finance (Banks or financial institution) Hindrance of exchange (Medium of exchange) Hindrance meaning: delay, obstruction.