|EcommerceBytes-NewsFlash, Number 2243 - March 15, 2010 - ISSN 1539-5065 4 of 4|
Alibaba is introducing the "Fair Play Fund" this week to help buyers on its B2B marketplace recover some of their funds - up to $1,000 - should they be defrauded by Gold Suppliers based in China. It intends to broaden the fund in the future to include disputes against Global Gold Suppliers.
The Alibaba.com international site has over 11 million registered users and said less than 0.05 percent of them have reported potential fraudulent activity. In 2009, 456 complainants who reported being defrauded by China Gold Suppliers had their claims substantiated; two-thirds of complainants lost less than $1,000 to fraud.
As with other online marketplaces, Alibaba takes no financial or legal responsibility for transactions between buyers and suppliers, but does provide dispute resolution and assistance in compiling documentation and other evidence to resolve business differences.
Alibaba removes and bans suppliers from its marketplaces in cases where a complaint of fraud against a supplier is substantiated, and if the supplier was a member who paid to list, the supplier forfeits the subscription fee. Alibaba will fund the new Fair Play Fund with those forfeited fees.
Alibaba said it would contact customers with eligible 2009 transactions via email this week with detailed instructions. If all complainants complete the process, they will be paid a total of about $250,000. Alibaba will announce a detailed Fair Play Fund application process in mid-April for 2010 complaints.
More information about Alibaba's safety and security policies are located on this page, and a cumulative list of Gold Suppliers that have been banned by Alibaba can be found on this page. Alibaba also has forums for members to share information:
Find Reliable Partners Forum
Report & Verify Fraud Forum
AliExpress Runs Sale on Wholesale Inventory, Parent Buys Export Service - November 16, 2010
Alibaba Comments on Vendio and Auctiva Acquisitions - November 12, 2010
Alibaba to Ultimately Compete with eBay in B2C Space - September 27, 2010
Alibaba and California Governor Announce Emerging Entrepreneur Initiative - September 13, 2010
Alibaba Sets Sights on US Markets, Says China Expert - September 13, 2010
About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to firstname.lastname@example.org.
You may quote up to 50 words of any article on the condition that you attribute the article to
EcommerceBytes.com and either link to the original article or to www.EcommerceBytes.com.
All other use is prohibited.
Email this story to a friend.
4 of 4