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  Collabotrade is theory that adds Collaboration to traditional Trading practices. Collaboration is defined as a process where two or more people work together toward a common goal, while Trading is the exchange of goods, services, or both. Collabotrading blends these two entities together and builds communities, which allows its members to develop mutual trust through increased level of interactions.

Trading items and services in a world that is interconnected is convenient but potentially worrisome for many buyers. What buyers really want--even when they don't say so--is a seller they can trust. Studies have shown that in a normal transaction, it is not possible for buyers to trust sellers. The reason is that the buyers do not know the sellers’ background and hence always doubt their motives.

The buyers can trust sellers only if there exists a common link that connects them together. The concept of Collabotrade emerged with the creation of this link and added trust to the trading. Collabotrade shows a way to a culture that values the relationship over the transaction and believes in collaboration through trading.