Sourcing your supplies online naturally carries the risk of poor product quality, or worse, fraud. Here’s how Alibaba.com’s Trade Assurance service can help minimize your fears as a buyer.
In today’s global marketplace, it is increasingly easy for businesses to source products from suppliers around the world. However, this ease of connectivity comes at a price. Communicating with suppliers through the internet without meeting them in person raises your risk of being scammed.
Fortunately, Alibaba.com has a program in place to make the job of sourcing from a credible vendor overseas easier. With Trade Assurance from Alibaba.com, buyers are given an extra layer of security when purchasing from overseas suppliers.
What Trade Assurance means for your order
With a purchase backed by Trade Assurance, buyers can receive a full refund if the shipment is delayed beyond the specified shipping date, or if the items received do not match the quality advertised.
Additionally, only Gold Suppliers from Alibaba.com are eligible for Trade Assurance. For a supplier to obtain Gold Supplier status, they must either undergo an onsite inspection or an authentication and verification (A&V) check. For suppliers based inside mainland China, an onsite inspection of their premises is conducted by Alibaba.com staff to ensure the authenticity of the operation. Furthermore, the supplier’s legal status and other relevant information are confirmed by a third-party verification agency.
For suppliers residing outside mainland China, they must complete an A&V inspection on items such as business licenses and contact persons by Alibaba.com as well as a third-party verification agency.
As a buyer, it’s reassuring to know you’re working with a credible overseas supplier. If you’re considering using Alibaba.com’s Trade Assurance to safely source products from an overseas supplier, here are three things you should know:
1. Benefits of Trade Assurance
Trade Assurance is a free service offered to all buyers ordering from Gold Suppliers on Alibaba.com. All purchases backed by Trade Assurance are guaranteed 100 per cent payment protection if the delivery of their product is delayed or does not meet the pre-arranged standards. If this happens, Alibaba.com will refund 100 per cent of the covered amount of your payment.
2. Orders covered under Trade Assurance
To qualify for Trade Assurance, an order must fulfill three requirements. Firstly, the order must be placed with a Gold Service supplier who has agreed to participate in the Trade Assurance program. Secondly, all orders must be placed directly on Alibaba.com. Finally, all payments for the order must be made to the supplier bank account designated by Alibaba.com.
3. Safeguarding your payment
Before placing an order with Trade Assurance, it’s important to note that particular steps need to be taken to ensure your payment is safeguarded.
To do this, begin by negotiating and confirming the covered amount for your order. If the product does not ship or fails to meet the quality standard, this is the amount that will be refunded. Once a payment amount has been agreed on, ensure the supplier has enough Trade Assurance Limit available to cover your payment. Keep in mind that this amount will be frozen once the order is confirmed.
The final step to safeguarding your payment is selecting between pre-shipment coverage and post-delivery coverage.
With pre-shipment coverage, your initial payment up to the remaining amount of the supplier’s Trade Assurance limit is covered. With post-delivery coverage, the full amount of your order payment up to the remaining amount of the supplier’s Trade Assurance limit is covered. Once your protection type has been chosen, you can select it in the order details page of your Trade Assurance terms.
We are fortunate to live in a time where technology makes it easy for businesses around the world to connect and do business. With programs such as Alibaba.com’s Trade Assurance service, buyers can enjoy peace of mind in the knowledge that the risk of ordering from overseas suppliers is minimal.