Online sellers who use Alibaba.com for product-sourcing can now get purchase protection through a new Trade Assurance program. Alibaba said the program gives merchant-buyers more visibility into sellers’ transactional history and credibility.
Buyers can claim a refund from participating Chinese suppliers using Trade Assurance from Alibaba.com if their goods aren’t shipped on time or the quality isn’t “up to scratch,” the company said. “If a settlement cannot be reached within 15 days, Alibaba.com will provide a full refund of the Trade Assurance Amount.”
Alibaba.com is a leading B2B platform for global wholesale trade owned by Alibaba Group. The new program uses data analytics on a supplier’s past performance and Alibaba.com trading history.
Trade Assurance is free, and Alibaba plans to roll out the service to global suppliers beyond China over the next few years. Online sellers must look for a Trade Assurance supplier and, according to the website, make sure their order is at least $1000.
In the first phase of its release, Trade Assurance will cover payments made by telegraphic transfer (T/T) and extend to other payments in future phases. “If a buyer makes a deposit or pre-payment, and the supplier does not live up to the shipping time or pre-shipment product quality requirements agreed in the contract, the buyer’s money is protected.”
Be sure to read details and restrictions on the terms and conditions found through the Alibaba Trade Assurance website.