What is a commodity?

A product with little differentiation which often drives down the price, or the ability to charge a premium. For example, any consumer product that you can buy non-branded could be a commodity product, e.g., toilet paper, aspirin, some would even say an airline ticket, etc.

Hi there,

A commodity is one in which there is perfect competition. There are many players and products are not differentiated. As such, you cannot set your price, and therefore you can primarily only compete on volume and on cost. (Important for a case)

Oil, gas, corn, water, etc. are all commodities!

So much literature on this is available online..you can easily self learn :)