Difference Between Commodity and Product
A commodity is a raw material used in the production process to manufacture finished goods, while a product is a finished good sold to consumers. No value is added to a commodity, which can be grown, extracted, or mined.
What makes a product a commodity?A product is a commodity when all units of production are identical, regardless of who produces them. However, to be a differentiated product, a company's product is different than those of its competitors.