Staff members of Weifang Zhongyintong E-commerce Co, an online barter trade platformoperator, manage client resources online.

Weifang Zhongyintong E-commerce Co, operator of online barter trade platform iBBX in Weifang Hi-Tech Industrial Development Zone, has set itself the goal of becoming an iconic enterprise in the bartering industry, similar to United States-listed Alibaba in the e-commerce sector.

Bartering refers to the exchange of goods or services, which was the norm before money was invented.

IBBX's model, which was inspired by this traditional trade model, is experiencing a comeback by using technology, such as the internet, to aid trade in modern society. The platform allows member companies in Weifang to trade globally, according to Zhao Sheng, general manager of Weifang Zhongyintong E-commerce Co.

Zhao said the model is supplementary to the modern money-based transaction model.

"People use what they have to exchange for goods or services. It is a win-win situation," Zhao said.

He said bartering has been popular in countries including Australia and Canada since the 1980s. The development of internet technologies, big data and cloud computing strongly supports the growth of bartering business. The introduction of such advanced technology has broken the limit on the number of parties able to engage in a trading activity. It allows multiple parties to exchange on the platform and promotes the circulation of goods and services, according to Zhao.

"More than 1,000 companies in Weifang have registered on our platform. Monthly trade volume is about 4 million yuan ($575,000) in the region," said Liu Shuai, a business manager of the iBBX service. "We could not have grown to our present scale without the internet and a cross-regional platform."

Supporting enterprises

Bartering has been gaining in popularity among small and medium-sized enterprises in Weifang recently, according to the company.

IBBX, launched in June 2015, already has more than 1,300 member companies, according to the company. A large variety of goods, such as wine, textiles and property are available on the platform.

Yu Deping, general manager of Shandong Yinong Agriculture, successfully traded agricultural products for a property valued at more than 400,000 yuan in Weifang through iBBX in 2016.

"We have to strengthen our competitive advantage in the currently sluggish economy, although our sales performance is still good," Yu said.

"A bartering system will provide more help to businesses when economic growth is slowing down," Yu said. "Companies would not have been interested in this traditional way of bartering if they didn't have overstock products."

Jinkaidi Textile and Garment, a textiles producer in Weifang, successfully traded about 20,000 bathrobes though iBBX last year, according to its sales director Zhou Xianke.

The platform can also help companies to resolve debts, according to Weifang Zhongyintong E-commerce Co.

Borrowers can repay debts with physical products. But if creditors do not need the products, borrowers can trade the products on iBBX and the platform can provide credit points to creditors, allowing them to exchange the points for products they want.

Zhao believes that trust is the foundation of iBBX's long-term growth and strives to strengthen the platform's credibility.

"Many businesses are interested in the trade model, but they don't trust other businesses," Zhao said. "Platform operators have to maintain strict standards to reduce default risk."

The Zhongyintong business evaluation team is required to review member companies' performance on a monthly basis to judge their default risks.

The company has identified more than 300 businesses with default risks.

Looking ahead, it will pay more attention to business development, according to Zhao Sheng.

"We will strengthen global cooperation and utilize our local advantages in different countries to introduce our member companies' products to the world. We plan to build an 'Alibaba' in the barter industry," he said.