What Is Trading?


The origins of trade date back to the Neolithic era of bartering, when subsistence farming was discovered. As new technological developments were added to the farmers’ day to day, the harvests obtained were increasingly large. Thus came the moment for the birth of commerce. Commerce is as old as a society and we could not conceive of it without it. Because we base our whole lives on this socioeconomic system, we have found it interesting to make a post about it.
And now the word “trade” is synonymous with growth, big brands, and globalization, but thousands of years ago it was all very different. In the first phases of humanity, man to satisfy his vital needs had to exhaust all his efforts to get a few foods. He begins to exchange excess crops, weapons, warehouses to transport food, and new agricultural utensils. To protect himself from the elements and keep wild animals away, he had to seek refuge in caves.

Later the family nucleus appeared and the social organization took its first steps. With the growth of the human group and its forms of social life, new needs for human satisfaction were born. Thus, the three basic pillars were food, clothing, and housing. It was then when the origins of commerce began to take their first steps.

The exchange of goods or barter appeared, which was the way in which the ancient civilizations began to trade, that is, to exchange goods for other products of equal or lesser value. The towns expanded their markets and perfected their land and maritime transport systems to bequeath ever further with their goods and bring with them new products unknown to the region of origin.

Although this system presented a problem since there was a point where a good could not be used as a payment system to receive other products. What does this refer to? We will explain it to you with an example below: if one store sells clothing items and another store sells bananas, then the clothing store may want to buy bananas, but the banana store will not be so interested. Due to this, metals or valuable objects are used as an exchange system. This is how the currency arises.

Finally, the monetary system was perfected as a measure of exchange, later when it became an accumulator of wealth, it gave rise to the poor class and the rich class.

At present, trade is an activity of the economy of the towns, destined to relate to the sectors of production and consumption, both national and international. The purpose of trade is to satisfy the needs of the consumer and to achieve economic benefits for the merchant.

What types of businesses are there?
From the origins of trade to the present, different types of establishments began to develop, among which are the following:

Wholesale trade: that business in which merchandise is purchased and stored in large quantities. The objective of this type of business is to sell these items to another company, but not to the final consumer.
Retail trade: a company that has purchased merchandise from a wholesaler and resells it to the final consumer.
The internal establishment takes place between individuals who reside in the same country and contain the same right in commercial matters.
Foreign trade: is the one through which the exchange of merchandise is carried out between a country, for example, Spain, with other countries such as Italy, France, the United Kingdom, etc.
The small business: in other words, it is that of a lifetime. It is a family business that is located in each of the neighborhoods. It is done on your own, that is, by yourself.
Trade on commission: it is the one through which sellers are dedicated to selling products that are not their property, but have been commissioned on commission. Therefore, due to the sales operations carried out by these sellers, they will receive a commission in advance.

What types of sales can we find in the trade?
Being able to know the different types of sales that have been carried out from the origins of the trade to the present and what each one of them consists of, in order to be better prepared when deciding which of them to implement in your business, is something important. For this reason, we tell you a little about each of them.

one. Retail Sale: is one where the sale of goods and services is directly with the end customer, for non-commercial personal use. For example, this is the case in supermarkets.

2 . Wholesale: where the resale of goods or services occurs wholesale and at a lower price than buying items by the unit. In other words, it is one in which a company resells its merchandise to another organization.

3 . Personal Sale: on this occasion, the sale is one where there is a face-to-face interaction between the seller and the client, that is, a direct relationship between both individuals occurs. This type of sale is the most effective to complete certain stages of the acquisition process, such as taking the buyer to the phase of preference, conviction and purchase. In addition, in this type of sale, sellers are obliged to carry out certain tasks, such as receiving orders, searching for and obtaining orders, and displaying products or services sold by the store. This type of sale is one that takes place since the origins of the trade.

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