The barter system is an age-old tradition that has been a critical part of our society since the beginning of time. You might have studied ancient history in which our ancestors used the barter system to commence trade in their times. In the barter system, goods and services are exchanged for other goods and services without any involvement of money. The entire system is based on the double coincidence of want and has numerous advantages for both parties.
But since there was no way to determine the actual cost of products and services exchanged at that time, the system was slowly and steadily eliminated from the society before money came into existence. But the modern times are seeing a steady comeback, with an improved and updated barter system. The corporate world has seen a tremendous rise in barter trade over a couple of years.
Barter trade or exchange has seen the emergence of commercial organizations who avail a trading platform for interested members to barter the products and services that they require. While the ancient system faced problems because of the lack of accurate cost of products and services exchanged, the new system has been improved with the addition of an internal currency known as trade rupee or credit.
With the help of this trade rupee or credit, both interested parties can get the right amount for their product or services. Moreover, they can purchase what they need from other traders using this credit, without any obligation of selling their goods and services immediately. The barter credits are kept on record with efficient monthly recordkeeping services and either party can avail the other trader’s product or service without any glitch or problems.
Modern barter system has become a critical part of the trading business, mainly because of its smart barter solutions and the capacity to effectively increase sales, conserve cash and move inventories. Increasing purchasing power, improving cash flow, enhanced efficiency, increased revenue, amplified potential clients, and greater marketing opportunities are just a couple of its advantages.
Commercial exchange services earn commission money by providing a safe and effective platform for corporate traders to barter for their product and increase their overall purchase or sale limit. The new and improved barter system is rising and growing exponentially, especially among corporate giants and for much more than just retail-oriented products. Many business establishments avail media, advertising, or more, in exchange for their needs and requirements. While India is still growing and adapting to this system with a barter business percentage of around 20%, the corporate world is seeing a pioneering revolution that is bringing back the best of the past.