Commodity vs. Product: What’s the Difference?
The main difference between Commodity and Product is that a commodity is a basic item that is the same no matter where you get it, while a product can be different.
Before we move to more differences, let’s first understand Commodity and Product:
- Commodity: A commodity is something that people buy and sell. It can be things like food, clothes, or toys. Lots of people want it, so it has value.
- Product: A product is something made to be sold. It can be anything from a toy to a computer. People create products to meet the needs or wants of others.
Now, let’s get to Commodity vs Product:
Major differences between Commodity and Product
Commodity | Product |
---|---|
A commodity is a raw material or primary agricultural product that can be bought and sold. | A product is a finished item that is manufactured and offered for sale. |
A commodity is generally standardized and interchangeable with other similar goods. | A product can be unique and differentiated in the market. |
Commodity prices are influenced by global supply and demand dynamics. | Product prices are influenced by factors like branding, marketing, and consumer perception. |
Commodity trading is often done on exchanges. | Products are typically sold through various distribution channels. |
Commodities are usually considered fungible, meaning they are mutually interchangeable. | Products have specific features and qualities that differentiate them from one another. |
So, these are the main differences between the entities.
Also see:
- B2B Product Management vs. B2C Product Management
- Associate Product Manager vs. Product Manager
- Product vs. Feature
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