Online Bartering

The New York Times writes:

Online bartering, an idea with many proponents but few successes, is emerging as an e-commerce model, bolstered by a spate of new Web sites run by veterans of the e-commerce industry. And although these sites wont soon challenge or eBay, they are carving out a significant niche in what could be a highly profitable business.

As promising as these businesses are, they represent no threat to big online companies like Netflix and Amazon, analysts said. The mainstream audience, in my view, is not interested in barter, given how simple renting and purchasing have become, said Safa Rashtchy, an Internet analyst with the investment firm Piper Jaffray. Barter will be a small fraction of e-commerce activity.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.