Sunday 8 February 2009

How online barter works

Locally registered companies keen to barter first sign up on the websites of the two online brokerages here, BarterXchange and Barter Vista.

1 comment:

Guanyu said...

How online barter works

Locally registered companies keen to barter first sign up on the websites of the two online brokerages here, BarterXchange and Barter Vista.

Members’ details are then checked against the Accounting and Corporate Regulatory Authority’s records. There have been no reported cases of fraud so far.

One-time membership fees range from about $400 to $1,000.

BarterXchange members also pay a monthly fee of $35. The exchange gets a 6 per cent cut in cash from the buyer and seller on goods traded.

For real estate in BarterXchange, the seller pays a 2 per cent cut on the value of the sale instead, while the buyer pays a 6 per cent cut on the barter component. Most real estate transactions are not settled entirely in barter credits. There is usually a cash component.

Barter Vista members do not have to fork out monthly fees but have to pay a 5 per cent commission in cash for each transaction.

Each trader gets a webpage to list the products it is offering for barter on the sites. Companies find one another using a product search.

Transactions on Barter Vista are mainly within Singapore, while half of BarterXchange’s transactions come from overseas markets in Malaysia, Australia, New Zealand and the United States.

Deals from Australia, New Zealand and the US are made through the International Reciprocal Trade Association, a global promoter of online barter with 90 exchanges on its membership.

The onus is on the trader to check on the company it is dealing with prior to a deal.

Both BarterXchange and Barter Vista maintain that they are not liable for traders’ losses from bad deals.

BarterXchange was founded six years ago by Dr Lee Oi Kum, a medical doctor who was inspired by such activities in the US, Britain and Australia.

Barter Vista’s founder is Mr. Terry Thng, an entrepreneur who had earlier founded ship management company Sea Pac Management, which still exists.