business transaction

Tips on how to use an online barter exchange to coordinate transactions

The online world that we conduct business in means bartering with other companies is now as easy as logging onto a website. Usually, this comes in the form of an online barter exchange. Barter exchanges are essentially a platform that allows companies to trade with each other without the medium of money, focusing purely on exchanging goods and services.


What are the benefits of using a barter exchange?

Online barter exchanges have popped up a lot in recent years however some have questioned their benefit given the platform fees that often come from being hosted on the exchange. Usually, barter exchanges will offer added services including easy tracking of your transactions and a report on the tax that must be paid. They also give you access to a far wider network of traders than you would be able to find if you were bartering offline.


How do I use an online barter exchange?

Most online barter exchanges follow a similar model. Before bartering you will need to create a profile and prove that you are a real business. With that in mind, it is worth having the relevant business information to hand when creating your account. After you’ve have made your account here are a few guidelines we recommend following.

  1. Create an attractive listing for your goods and services

Whilst you are not selling goods for cash you are still selling yourself as a company. Make sure you include photos of your products or services and reviews from previous barter partners. We also recommend having a link to your website so others can learn more about your offering.

  1. Engage with others on the community forums

Most online bartering platforms find that the more successful users are the ones who are constantly engaging with the community in more than just transactional ways. Try to talk to people on the online barter exchange to get an idea of what they are looking for. These forums are a great way to share information.

  1. Be willing to engage in haggling with your barter partners

In addition to being open to discussion you also need to be open to, well bartering. As you are not trading in cash the value you could offer a business is very subjective and dependent on their needs from the transaction.

  1. Measure your performance with the barter exchange

Without the cold hard reality of cash, it can be difficult to at a glance work out how well you are doing on a barter exchange. Therefore, we recommend having regular reviews of your performance and how it could be improved in the future.

Remember that barter trades are taxed as normal transactions

Bartering is great for reducing some of your business overhead costs, however, you still must report the transaction as you would a normal cash exchange. Our article on contra deal taxation talks through the information you need to to ensure your bartering activities are legal.