Definition: Commerce

What is commerce?

Commerce is the exchange of goods and services between individuals and organisations through monetary transactions.

In the past, physical marketplaces like traditional brick-and-mortar stores facilitated trade by bringing buyers and sellers together in person. Nowadays, extensive internet access via modern infrastructures and the widespread use of smartphones have enabled the rise of digital marketplaces around the world. With numerous online platforms such as Amazon and Alibaba bringing together large numbers of buyers and businesses globally, commerce is increasingly taking place through electronic channels.

This form of online commerce, also known as digital commerce or eCommerce, utilises the ubiquitous internet to open up new opportunities. It enables buyers and sellers to make contact with just a few clicks, regardless of location.

The shift from retail to eCommerce has been driven by technological advances that have improved global connectivity. Most people now own a smartphone, which gives them access to digital marketplaces anytime, anywhere. As a result, commerce is increasingly taking place online and no longer just in physical spaces.