Login or Register

  Welcome: Guest

Home >> Article >> Education >> Commerce >> Post New Article Bookmark and Share

Commerce and its various dimensions

July 01, 2010  by: Mohammed Fouzan  Points: 15   Category: Commerce  Earning $0.60   Views: 766

Here i will explain some details about trading and buying policies which is commonly used terms in commerce world


Trade is an integral part of commerce. Trade is buying and selling of goods and services . In modern business sales are possible only through marketing. Let us examine different types of buying and marketing system in practice.


Buying is a fundamental activity in commerce, We usually buy goods for domestic use from different business organizations. Their objective of holding goods is to sell them for a big profit. The buying process is undertaken for the following three purposes.

* For consumption
* For selling

Factors that to be considered while buying for consumption are,

* Utility
* Quality
* Price

When goods are bought for sale or for production of other goods, we can say that buying is for business purpose. In such buying factors to be considered are ;

* Profitability
* Easy availability
* Consumer's faith in goods purchased
* Possible fluctuation in price


While buying goods for business use the following common buying policies are adopted:

1. Conservative buying :-

Buying goods in small quantities for current use alone is a conservative buying
policy. Mostly this type of buying is done by small scale retailers. They buy goods for daily business or at the most for two day's use. As the retailer's buy in small quantities for their current business requirements they will get the advantages of trade discounts.

2. Reciprocal buying :-

We might have come across exchange fair being organized for electrical goods and vehicles. Here an individual gets a new product in exchange for an old one. There are industrial enterprises which organize such type of exchange markets, where reciprocal buying takes place. Reciprocal buying is a process of accepting goods in exchange for other goods. Here the producer can ensure a market for his products.

3. Concentrated buying :-

Buying goods from the same producer consistently gives some advantages to the retailers. Such buying is called concentrated buying. The buyer enjoys the reduction of commodities in this method.


No response found. Be the first to respond to this post

Post Comment

Please Log In  to post comment

Related Resources

E-commerce Website Development Process and Steps Involved
An e-commerce website is the best way to promote and expand your business to international level. It helps you to cater to international customers 24 hours a day and generate more revenue.

Magento E-commerce Web Development Solutions
Magento is an open source e-commerce solution which has gained immense popularity over the years. It is, in fact, the world's fastest growing e-commerce platform. Magento has made the online shopping platforms and web store development a lot easier.

Magento Development: The Current Trend in E-commerce
Magento is a powerful e-commerce solution which provides scalability, flexibility, and other multiple features for your business growth. It can be used for the development of multiple web stores. Since Magento is theme based and separates templates, layouts, and skin making, it makes it easier for developers to create an e-commerce website in no time.

E-commerce Shopping Cart Development and Customization
E-commerce is the medium to enhance your business online. E-commerce shopping cart platform helps to grow your online store......

What an E-commerce Website Should Contain?
n today's time, E-commerce websites are flourishing in abundance. The reason behind such a big influx in their number is the advance...

Latest Resources From The Same Category

MBA - Masters in Business Administration
MBA is very popular in India as every student after completing his/her Bachelor degree look forward to join any reputed B-School for better career and job prospects.

Marketing of vocational education
The meager success of vocational courses means that quality of education is substandard. The myth remains that most of these institution don't have well qualified teachers.

Capital Assets Pricing Model (CAPM)
Capital Assets Pricing Model was developed by William F. Sharpe. In portfolio theory he emphasised that the risk factor is a combination of two types of risks (1) Systematic Risk (2) Unsystematic Risk.

Commerce and its various dimensions
Here i will explain some details about trading and buying policies which is commonly used terms in commerce world


Top Performers     Top Contributors     Share and Earn     Terms of Service    Privacy Policy     Contact Us