Buzz
Bartering is an age-old yet straightforward idea: rather than using money to pay for things, you exchange goods or services of equivalent value. You’ve likely bartered at some point without realizing how much more you can trade. There are numerous apps, networks, and local businesses that have embraced bartering, allowing you to swap time, skills, and goods. Below are some of the best options for bartering instead of paying with cash.
Platforms and Online Communities
The rise of modern technology has greatly benefited the practice of bartering. Numerous apps and websites connect you to various bartering communities, expanding your opportunities to trade goods and services.
Barterchain: This app is user-friendly: Simply select the goods or services you require, list what you have to offer, and search for a suitable match. Once you find a match, you can contact the person and negotiate the terms of the trade.
HaveNeed: The HaveNeed app makes bartering effortless by allowing you to list both what you have and what you need. It then automatically matches you with up to five other users who have what you’re looking for or need what you have.
Bartershop: Aimed at business-to-business exchanges, Bartershop helps small businesses in financial strain by facilitating trades of goods and services that can alleviate cash flow challenges.
BarterUp Online: This web platform lets users post the items they want to trade and browse for what they need. While paid subscriptions offer additional services like promoting bulk items or setting up “garage sales,” the free version allows for bartering at no cost.
Exchanges
Barter exchanges are typically more structured and focus on business-to-business transactions. If you’re running a small business and looking for a more organized bartering experience than an app, you may want to explore exchanges for potential trade partners:
The National Association of Trade Exchanges (NATE) offers a directory of barter exchanges, but you need to be a member, which costs $495 annually, to access it. Whether they recognize the irony of charging cash for a platform that facilitates bartering is unclear.
The International Reciprocal Trade Association (IRTA) provides access to a network of barter-friendly businesses and other connections, but you must join as a member to access the information.
Barter Network helps businesses trade surplus goods for the materials they need, effectively converting a loss into savings. To use the network, businesses must pay membership fees, dues, and transaction charges.
BizX is similar to Barter Network but does not charge membership fees or dues, although it does charge a transaction fee for trades.
IMS Barter enables businesses to trade unsold goods and excess capacity internationally, but it requires membership to participate.
There are also regional exchanges, such as BarterPay (available only in Canada), The Barter Company (serving the Atlanta metro area), and TBT Barter (operating in southern New Jersey). If you’re seeking a B2B barter solution, it may be worthwhile to look for a local exchange in your area.
Small local businesses
It is quite likely that a nearby business may be open to exchanging their goods or services. For instance, Unregular Pizza and Unregular Bakery in New York host regular barter events, where people can trade items for food. Exploring your local business scene or reaching out to retail shops that might have barter systems in place could lead to opportunities. Alternatively, you can directly contact a business with a need and inquire whether they’d be open to a barter arrangement.
Tax Considerations
It’s important to note that while bartering doesn’t involve cash, the IRS still views barter transactions as taxable income, and it’s your responsibility to determine the fair market value of the goods or services you’ve exchanged. Essentially, the goods or services you give away should be treated like money spent, and what you receive should be treated as money earned. Just because cash isn’t involved doesn’t mean taxes are not a concern.
