Let’s recall the time when money was not the medium to buy goods and services. Yes, you heard it right! Back in old times, people used to operate businesses via a barter exchange program. In this, all the products and services were traded without money in exchange for something else. Though, not lots of people are using this method currently but some businesses are still using the barter system through Barter Exchange App Development.
But now this system has applied a modern approach, and this is consisting of many organizations that handle and regulate bartering between the enterprises and individuals with the help of the internet. The innovative method also known as the barter exchange app can refer to as a simple and beneficial app that facilitates users to trade their goods or merchandise.
Without any further ado, let’s jump to the important details about barter exchange app development, the involved cost, and its features. Check them out here:
What is Bartering?
Bartering is known as a completely cashless exchange system in which two parties are involved to directly trade their products and services. While talking about this, it might remind you about the feudal marketplaces, but modern businesses also comprise it in the form of trading space, supplies, or services. Nowadays, bartering has broken the barrier of location and has made it global. While trading, the cost of the bartering items can be settled by the involved parties. As we all know the internet has the power to bring sellers, buyers, and traders to one place to exchange the merchandise easily, so hence we must take advantage of this.
Overview of Barter Exchange
A barter exchange acts as an organization that provides services being a third party to handle the barter transactions between all the people involved with the organization. Or we can say it acts as a bank for keeping a record of the value of all the barter transactions and the account of every member. A barter exchange is also useful when it comes to providing accounting on monthly basis for each member along with the tax reporting of barter transactions at the year-end.
Barter exchanges can be of two types, either local or regional; they own websites where they list all the services and products that they offer for sale. If you purchase any of the products or services from an exchange member, they will be debited from your trade account. And, if you sell your products or services to any of the members, they will be credited to your account.
Below are some of the things you are required to know about the barter exchange. Have a look-
- A barter exchange permits a user to trade the services and goods with more and more businesses worldwide.
- Barter exchanges apply membership fees for newly joined members and a specific amount of transactional percentage & maintenance fee monthly to all the members. There are some barter exchanges as well that charge to stock the members’ accounts monthly. It tends to be encouraging members to purchase and sell.
- Members of barter exchange can barter with multiple businesses or people at a time in such a round-robin system. They don’t have to get worried about keeping the record of who owes how much to whom?
Working Process of Bartering
Bartering is a simple process that allows people to trade services and goods. Here the most significant thing to consider about the bartering exchange with other businesses is that the interest rate swap (IRS) cogitates barter taxable. Hence, it is necessary to keep track of all the barter transactions comprising the expenditures relevant to the transactions and income got from the same. When you are bartering with multiple businesses or individuals, keeping the transactions track becomes a little bit difficult. From here, the barter exchange system starts its work.
While having Barter trade app development services, you might be confused between choosing between local or online barter exchange, both of them are good. Individuals can have a local barter exchange group for their local business. All these groups conduct local events and have online pages to get a connection with other local ventures. The local barter group can be a segment of a bigger online barter group; therefore, you can barter with ventures across the world.
How Bartering is Beneficial?
Various businesses are adopting barter exchange software development services as they have realized its importance in the current time. The biggest advantage of the bartering system is that it permits users to access services or products related to other businesses without spending any cash. Due to the providing value without using any cash, online barter exchange groups have recorded an upsurge since the beginning of the pandemic time. Involved people can get value from the business segments that have been unused before, and they can also enhance their networks and brand prominence.
One needs to be super attentive about the offers they provide and must look at what they get and with whom they barter with. There might be times when the value of exchanged products doesn’t get along; hence people end up bartering a lot beyond their capacity. Here we can say it is the reason why they need to do the planning.
Important Feature to Add to the Barter Exchange Application
It is significant to integrate impressive features while having Goods exchange app development services to make the app more attractive to users. It increases the chances of the app’s success in the market by making it super-fast, highly secure, and reliable via using third-party integrations and modern technologies. Here are some of the features-
- Create Profile: To participate in the barter exchange process, all the parties are needed to create a profile with the app. This profile will contain their basic information such as name, phone number, bank details, and so on.
- Fast Installation: A barter exchange system must be able to install easily just with a few clicks. With instant access, it would save a lot of time for businesses.
- Alliances Worldwide: The barter exchange app should have the ability to connect, network, and cultivate by associating your marketplace & almanac with other exchanges across the world.
- Real-time Processing: The app must have an integrated processing system that allows for managing transaction fees of the members in real-time. It is done during the trade transactions or might be another time as well.
- Quick Trading: At the time of goods trade app development, put all your attention to integrate the feature of faster trading. It helps to collaborate, link, and trade with different exchanges globally and locally to augment the trading velocity.
- Email Marketing: Email marketing is an essential feature of the barter exchange system. It acts as an integrated template planner to generate newsletters, promotional emails, & trickle mail campaigns.
- CRM: Integration of CRM with industrial-strength helps to manage and keep track of clients and potential leads, emails, notes, and calls.
- Live Communication: The app must be able to start and track all the real-time conversations with the involved app members and visitors on the site.
- Loyalty & Rewards: Barter exchange systems must have this feature to reward the users while using credit cards. Exchange can also set up customer loyalty programs for users and associations.
- Multiple Payment Gateways: Payment gateway integration is advantageous for users to do trade exchanges via credit card or check automatically to pay the due fees every month. These integrations can consist of Netbanx Integration, PayPal Integration, USAePay Integration, Google Checkout Integration, and Autorization.net Integration.
Along with these, below we have stated more exclusive features according to the different panels. Have a look:
- Profile Creation
- Search Bar
- Save Searches
- Favorite Members and Offers
- Google Map Integration
- Rating & Reviews
- Request for Items
- Several Billing & Shipping Addresses
- History of Purchases
- Social Network Integration
- Push Notifications
- Debit an Account
- Product, Service & Listing
- Images & Video Integration
- Offers and Discounts
- Discount Module
- Contact to Broker
- Multiple Import Offers
- Sales History
- Search Request for Items
- Real-time Notifications
- CRM Integration
- Document Management
- Business Intelligence
- Newsletter Management
- Saved Searches
- Trade Rating
Popular Barter Exchange Applications in the Market
Bartering has spread its wings across the world and the value of bartering goods and services is negotiable by the ones who are buying them. These barter exchange apps like TradeMade, Freecycle, etc. have made trading easier for sellers, buyers, and others and now, businesses are adopting the barter exchange app development services at a larger level.
Here you can check out the top 6 famous apps used for barter exchange to make the trading fast, easier, and simple. Get the details:
|Sr. No.||Application Name||Available On||Revenue Model||Publisher|
|2||LetGo||Android | iOS||In-App Purchases||letgo|
|3||Freecycle||Android | iOS||Free||trashnothing.com|
It is one of the most popular barter exchange apps that comprise an interactive UI (user interface) that help to trade and barter. With this app, users can sell and buy products and services they desire. This barter app is associated with other firms to create a difference and plentiful carbon metric database. The app will help you to provide an understanding of the environmental cost of products and services. Here, in this app, you can easily upload the items in different categories such as shoes, electronics, fashion items, gadgets, furniture, handicrafts, gifts, and so on. Among the tasks that you can upload are laundries, transportation, graphic design, web development, tutoring, online marketing, and more.
This goods trade app comes with online classifieds that permit the users to get linked with the people worldwide to buy and sell. The app has simple and easy-to-use functions. Sellers just have to take a photo of the items and upload it on the app. After that, they must list these items on the list. And, when buyers search for any of the required items, LetGo will help them to search it nearby their location.
This app has a ‘Build Trust’ feature where all the users have to verify their app profiles. After verification of the profile, they will get more visitors and search for items they desire.
The Freecycle is a famous app in the world of barter exchanging as it is helpful for trading, exchanging, and bartering. By entering the proper location, users can search for people to sell or buy the items or exchange them. It is completely a non-profit activity by people that they do to help people in their town by giving away their stuff and other goods. The app is all based on three elements: reduce, reuse, and recycle.
This is the most useful application when it comes to finding people and goods to trade easily and fast. Anybody who is in search of items or wants to give away their items can upload their goods and requirements on the app. Buyers can browse the items added by someone else and can choose what they want. On the dashboard, viewers can see all the products and goods and the total number of matches.
While getting knowledge about Barter trade app development, businesses can look at Swapub for reference. It is a suitable app for those who are in search of products and services across the world. This app has a multilingual feature; hence users can communicate easily in any language they prefer with people in different regions and countries. It also has different filters to sort out the products as per their requirement.
Users who want to swap the goods they require no longer can create and modify the pictures and short videos to it. Users can also share the products on social media channels to engage their acquaintances in the bartering process.
Things to Consider While Setting Up Barter
Before diving into the details, the foremost thing to know is that Bartering and Barter exchange both is different because the direct bartering goes when you have already decided on a company to do bartering with. On the other hand, if you are in the contact with multiple barter contracts in the market, here comes the role of barter exchange as it helps you to find what you want. Now, let’s get to know how to set up barter-
1. Be Sure What You Can Offer
Don’t brainstorm about the things you can gain from bartering without deciding what you can give. Create a list of the items or your business assets along with what this business requires to set up and what it actually needs, and then decide how much you can contribute to this specific area. Maybe it turns out to be your time, domain, services, or physical space.
2. Value Estimation
Bartering is not about the fixed hours or units; here you must consider the proper value as well. Though it is not possible to guess the exact figures, but you have to figure out a rough estimation, be it dependent on the unit, service, or hour. It will help users to search and swap the items of the equivalent value.
3. Work on Your Requirements
First of all, you must look out for what you need rather than browsing the items. It will make sure that you don’t get to have anything extra. Make a list of items you need and available through barter, it will help to enlarge your business. After that, you can follow with one or two ideas. Select the one that suits your needs and adds more value to your enterprise.
4. Find Out a Suitable Exchange
Barter exchange can be both online and offline. Some of them will be registered in the member directories of standard organizations such as IRTA (International Reciprocal Trade Association) and NATE (National Association of Trade Exchanges). It depicts that they are legit but that doesn’t refer to that they have expertise in small business bartering, apply fees (for transactions, membership, and others) or offer built-in advantages. You must figure it out on your own. It also includes research testimonials and different members along with how often they barter.
5. Research the Business and Organizations
Due diligence is not essential when it comes to direct bartering but while using exchange, consider it is legit. Hence, get to know all the details of the business first. While getting to know about a company’s validity, you can also communicate with their team via having a meeting and asking different questions about the delivery, quality, and accessibility.
6. Must Provide Terms and Conditions in Written
You will surely need a lawyer while making a contract at the time of standard exploration on legal conditions and taxes. Clear out your expectations and how you will quantity them along with whether you are going to meet them or not and primary details of the barter exchange.
Cost Assessment of Barter Exchange App Development
With the basic features included, every businessperson can afford the barter exchange app development solutions for their start-up. Though, the cost can go high if they decide to comprise some of the advanced features. Not only this but multiple aspects can have a direct impact on the overall cost of barter trade app development. Those aspects are:
- List of Features
- App Complexities
- Chosen App Platform (Android, iOS, or cross-platform)
- Experience & location of the app development company
- Time Taken in the development process
Looking at these different aspects, the barter exchange app development cost would be around $40,000 to $70,000. If you go for cross-platform, you must have to bear a higher budget than estimated. After getting knowledge about how to set up a barter exchange process and development cost, you are almost ready to get into it. The last thing to consider is ensuring the security and capability to handle the large segment of users on the application.
The Final Verdict
At last, this article concluded all the required steps for setting up a barter exchange along with involved cost and must-have features. We have also mentioned the popular barter exchange apps as well that will help you to know what are significant things to add to barter exchange app development and what must be avoided. Since the old times, bartering has been proved a beneficial and suitable way to swap things in the form of business. Be it anything such as when you are low on cash or make use of the resource, bartering is always advantageous. Just make sure to understand the value of the things you are exchanging with other parties and reap the full profit out of it.
If you are looking to hire a barter exchange app development company, there could be no one better than Octal IT Solutions. We have provided hundreds of feature-rich solutions to help users in smooth bartering and businesses to gain profits and revenue. Contact us to have the best solution!