Alibaba Launches Trade Assurance Buyer Protection Program
Chinese product sourcing portal Alibaba.com has launched a new protection program which refunds a buyer's payment if the agreed time or quality requirements are not met.
Buyers can claim a refund using Trade Assurance from Alibaba.com if their goods aren't shipped on time or the quality isn't up to scratch. If a settlement cannot be reached within 15 days, Alibaba.com will provide a full refund of the Trade Assurance Amount. Buyers will also have more visibility into sellers' transactional history and credibility.
The free payment protection service is available from participating suppliers in China with plans to roll out the service to global suppliers over the next few years. In the first phase, Trade Assurance will cover payments made by telegraphic transfer and extend to other payments in the future.
"Building trust has always been a hurdle to overcome in international trade and Trade Assurance from Alibaba.com is a data-based way to help buyer and supplier build trust. Leveraging what we call ‘big data insights', we are able to differentiate the experience and competence of suppliers, which allow us to assign them with a Trade Assurance value," said Wu Min Zhi, Senior Vice President, Alibaba Group. "Even small inventory investments for a small business can have serious repercussions if their order isn't delivered promptly or doesn't meet their expectations in terms of quality. We are committed to them and the many other businesses missing out on the benefits of international trading due to trust concerns over product quality or payment security."