Alibaba.com, the leading platform for global wholesale trade owned by
Alibaba Group (NYSE:BABA), today launched Trade Assurance, a free
service designed to create trust in trade by giving businesses peace of
mind when trading with China. Through the use of data analytics on a
supplier’s past performance and Alibaba.com trading history, Trade
Assurance provides global buyers with a set of features and protections
to help ensure a supplier honors certain details of their contract with
the buyer. Trade Assurance is immediately available to all of
Alibaba.com’s millions of global buyers that are ready to trading
internationally.
According to recent analysis from Frost & Sullivan2, B2B
online sales will likely hit 25 trillion USD by 2020, accounting for
close to 27 percent of total global manufacturing trade. Buying online
from traders across the globe gives businesses access to a wider range
of products and more competitive prices, but some businesses, especially
small and medium businesses, are often reluctant to trade across borders
due to concerns about payment security or product quality.
Alibaba.com’s new Trade Assurance service aims to make trading easier
and offers businesses of all sizes peace of mind when buying goods
online. The free payment protection service is currently available from
participating suppliers in China with plans to roll out the service to
global suppliers over the next few years. Alibaba.com will refund up to
100% of the Trade Assurance Amount1 that was agreed between
the buyer and supplier on a contracted purchase if the order is not
shipped by the date agreed in the contract and/or the products do not
meet the quality requirements set out in the contract3.
“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.”
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.
For more information on Trade Assurance, visit http://tradeassurance.alibaba.com/.
About Alibaba.com
The first business of Alibaba Group (NYSE:BABA), Alibaba.com (www.alibaba.com)
is the leading platform for global wholesale trade serving millions of
buyers and suppliers around the world. Through Alibaba.com, small
businesses can sell their products to companies in other countries.
Sellers on Alibaba.com are typically manufacturers and distributors
based in China and other manufacturing countries such as India,
Pakistan, the United States and Thailand.
1 “Trade Assurance Amount” is the monetary limit that Alibaba
affiliate One Touch has agreed to pay the buyer for, and on behalf of,
the supplier in the event of the supplier’s breach of the Trade
Assurance Services provisions in a Purchase Contract.
2 Frost & Sullivan, April 2015, Future of B2B Online
Retailing (http://www.frost.com/ma4e)
3 This feature is optional. Buyers must enable it when they
place their order. Quality requirements will be guaranteed pre-shipment
and upon receipt of the goods at port of entry.
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