Commodification (or commoditization) is the transformation of goods and services into a commodity.

Commoditization occurs as a goods or services market loses differentiation across its supply base, often by the diffusion of the intellectual capital necessary to acquire or produce it efficiently. As such, goods that formerly carried premium margins for market participants have become commodities, such as generic pharmaceuticals and silicon chips.

i kommersiella sammanhang förutsetts ofta en handelsvara av ett visst slag vara utbytbar mot en annan vara inom samma kategori.

Commoditization har inget med produktionen att göra mutan att produkten tappat sin konkurrensfördel, USP, därför att konkurrenterna kommit ikapp och produkten blivit "vanlig" - alla konkurrenter ha i stort sett samma egenskaper.