Commerce includes two types of activities: trade and auxiliaries to trade. These activities are necessary for facilitating the exchange of goods and services.

Trade refers to the buying and selling of goods. It is the core activity of commerce that directly involves the exchange of goods between parties.

Apart from trade, there are several activities required to facilitate the purchase and sale of goods. These are called auxiliaries to trade and include transport, banking, insurance, communication, advertisement, packaging, and warehousing. These services support and enable trade to function smoothly.

Commerce provides the necessary link between producers and consumers. It embraces all those activities which are necessary for maintaining a free flow of goods. Commerce is said to consist of activities of removing the hindrances of persons, place, time, risk, finance, and information in the process of exchange of goods and services. For instance, insurance provides protection against risks, banking and financing institutions provide capital, and advertising makes it possible for producers and traders to inform consumers about the goods and services available in the market.

In conclusion, commerce includes both buying and selling of goods (trade) as well as auxiliaries such as transport, banking, etc., which together ensure the smooth flow of goods from producers to consumers.