Commerce is located in southeastern Los Angeles County, situated seamlessly within the expansive Los Angeles Basin. It is bordered by East Los Angeles to the north, Montebello to the east, Downey and Bell Gardens to the south, and Vernon and the city of Los Angeles to the west.
The city's physical geography is almost entirely urbanized, built upon the flat, alluvial plains that characterize this section of the basin. The Los Angeles River flows near its western boundary, while the Rio Hondo forms a natural boundary to the southeast. These waterways, historically prone to flooding, are now encased in concrete channels to protect the densely built environment.
While natural vegetation has largely been replaced by industrial parks, railyards, and commercial centers, the city maintains several beautifully landscaped municipal parks that provide vital green spaces for its residents.