How popular is bartering?

Bartering has been around in some capacity for centuries with individuals and businesses swapping goods and services without the requirement for cash to change hands. So, if you have just bought a new lawn mower and want to swap your old lawn mower with your next door neighbor’s electrical drill that he no longer requires as he has bought a new one you can set up the deal quickly.

However, you can arrange a similar swap with someone in another part of the world due to the existence of the Internet almost as quickly. In fact, it is the Internet that has enabled the bartering industry to grow so rapidly with it now being a global industry.

It has grown to such a level that it even has its own trade association called The International Reciprocal Trade Association (IRTA). Its members can be found in the United States of America, United Kingdom, Turkey, Singapore, Spain, Sardinia, Russia, Portugal, Poland, Mexico, Malaysia, Japan, Italy, Israel, Hungary, Greece, Germany, France, Colombia, China, Brazil, Canada and Australia.

The following statistics just go to confirm the impact and benefit bartering/swapping has on world trade markets: -

• According to the U.S Department of Commerce bartering makes up 30 per cent of total business conducted throughout the world.
• Worldwide, there are more than ½ million corporate trade exchange members.
• Of the Fortune 500 companies, it is believed that 65 per cent of them are involved in bartering in some form.
•  Of the companies listed on the New York Stock Exchange it is also estimated that 65 per cent of them participate in bartering.
• Of all the small businesses operating in the United States of America it is estimated that approaching 33 per cent are involved in bartering.

With the uncertainty of global economies, cash is at a premium so we are seeing a significant increase in interest in goods and services being bartered. In fact there are currently about 400 corporate and commercial barter companies worldwide. In 2011 it was estimated that in excess of 400,000 businesses trading worldwide participated in barter exchange producing an estimated trading volume of a staggering $12 billion. It was forecast that in 2012 this figure would increase by a further 5% to 10%.

So, you will no doubt agree that bartering has a firm foothold in both world commercial trading and for the exchange of goods and services between individuals.

If you are not already a participant in bartering don’t worry you soon can be!