Barter System is the oldest system of business where goods are exchanged for goods. Centuries ago when money was not invented the whole system of trade was based on barter system. Barter system is really a simple method of finding and selling things that one need in life. Before, the creation of our current day economic system, it was a reliable source of trading.
In barter system, the exchange of things is solely took place between two people who have two different things and want to exchange with each other. Apparently it seems simple enough but, actually there are many drawbacks of this system. For instance, there is no guarantee of finding the object of your need in time. Similarly, there is no set measure of quality. You have to accept the said thing as it is offered by the time. Sometimes, you may find it difficult to exchange a commodity with required object. It means you have more precious object than offered by the other person. So, in this case you must have to suffer loss. Another significant matter of barter system is that you cannot store commodities for long time due to the fear of wastage. You must have to exchange them before being perished out.
Although, due to these factors, barter system becomes valueless in modern era but, even though we can find a few examples quite similar to barter system in current day economy for example, swapping. It is a process which woks like ancient barter system. People can exchange goods or services for goods or services without the medium of money.
In this system individual people can exchange objects in an informal manner. You can use it like traditional barter system. You can even sell things like bags, books or other household items through swapping system and get something else according to your need. It seems really a good idea that you can sell those things through swapping that you don’t need.
With the rapid development of business through swapping industry growth is increasing day by day. Barter software has made it even more convenient for people who take interest in swapping. Lot of industries are now involved in exchanging goods and services as a mutual benefit through swapping system.However,there are many key factors that made swapping different than traditional barter system.
In swapping, one thing you must consider that trust is ultimate base of this deal. There may be people who deceive you. For which you have to beware.
Hence, it is said to be a disadvantage of swapping because apparently there is no guarantee that you will receive the goods after making payments.