Almost total lack of meaningful differentiation in the manufactured goods. Commoditized products have thin margins and are sold on the basis of price and not brand. This situation is characterized by standardized, ever cheaper, and common technology that invites more suppliers who lower the prices even further.

Use commoditization in a sentence

  • There was a lot of commoditization between the goods and I could not tell the difference between them at all.

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  • My business started out so well a few years ago as few other people were selling my product, but as commoditization set in, and more and more competitors entered my market, I could no longer differentiate myself.

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  • Businesses that use the practice of commoditization do not make goods with high quality, rather cheap in the advantage of quick profits in bulk amounts.

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