In addition to trade, commerce includes several ancillary services which facilitate exchange of goods and services. These auxiliary services or aids to trade are described below:
(i) Transportation: Transportation carries goods from producers to traders and finally to consumers. It bridges the geographical distances and thereby performs a useful function in commerce. It makes for speed and efficiency in exchange. Transportation provides the wheels of commerce. It is become of transportation that a producer can sell his goods in different parts of the world. It creates ‘place utility’.
(ii) Warehousing or Storage: It refers to the holding and preservation of goods until they are finally consumed. Goods have to be stored at every stage in the process of exchange. Warehousing performs a useful function by matching supply with the demand. It helps to make available the seasonally produced goods throughout the year. In the absence of warehousing. A producer will have to dispose of the goods as soon as they produced. Warehousing creates ‘time utility’.
(iii) Insurance: It facilitates trade by providing a cover against the loss or damage of goods in the process of transit and storage. By getting their goods insured, producers and traders can avoid the risk of loss due to fire, theft, pilferage, etc. Packing also helps to protect the goods during transit and storage.
(iv) Banking: Banks are traders of money and credit. They help in the buying and selling of goods by providing a convenient and safe mode of payment. Banks also grant credit to businessmen with which they can carry on larger volume of trade.
(v) Advertising: Advertising brings goods and services to the knowledge of prospective buyers. It helps to highlight the distinctive features and utility of different products. With the help of such knowledge, consumers can obtain better value for their money. Marketing research helps to know and understand the requirements of consumers.