Can I Trust Alibaba Trade Assurance?

Feb 21, 2024 Chapter 1. Sourcing

After you got your samples and if everything looks good, you are at the stage of placing your final order with the suppliers. As we have talked before, you have filtered out suppliers with trade assurance, so today we gonna show you how to use Alibaba trade assurance to place your order.

 

What is Trade Assurance?

Trade Assurance is a free transactional protection service provided by Alibaba.com to enhance the trust between buyers and suppliers. It offers protection in the following situations:

  • Late Shipment: If your products are not shipped on time as per the contract with your supplier.
  • Quality Standards: If your products do not meet the quality standards as per the contract with your supplier.

 

Can I Trust Alibaba Trade Assurance?

Yes. In the event of an issue with an order covered by Trade Assurance, Alibaba.com will assist you in reaching a satisfactory resolution. This may involve reimbursing some or all of your costs or facilitating another agreement between you and your supplier.

 

 

 

How Alibaba Trade Assurance Work?

Trade Assurance provides several benefits that can empower your business when dealing with suppliers in China:

Try New Suppliers Risk-Free:

Whether your company is new to Asia or you’re exploring Chinese-based suppliers for the first time, Trade Assurance covers you from your initial deal. This allows you to take advantage of cost savings in China while ensuring that your order meets your product standards.

 

Freedom to Shop Around:

Trade Assurance frees you from being limited to a narrow pool of suppliers, allowing you to search for competitive prices on Alibaba.com. If a supplier offers Trade Assurance, you can confidently specify product standards and shipping deadlines when placing orders.

 

On-Time Delivery:

Specify a shipping date in your contract with the supplier, reducing concerns about long-distance shipping from China. If the supplier misses the agreed-upon shipping date, you can file a dispute to claim a refund, helping you plan distribution more effectively.

 

Products Meeting Your Standards:

Be specific about your requirements in the purchase contract when ordering from a Trade Assurance supplier. Clearly define materials, dimensions, and other product specifications to ensure that the final product meets your expectations.

 

 

Risks and Considerations

While Trade Assurance provides peace of mind, it only covers specific aspects of your order, such as the shipping date and product quality. Keep the following points in mind:

  • The details in your order contract are crucial, as your Trade Assurance claim can only enforce the terms of the contract.
  • Disputes are considered from both the buyer’s and the seller’s perspectives, with the platform acting as a mediator.
  • Payments should be made through the platform or via integrated wire transfer, not directly to the seller’s private account.
  • There are maximum claim amounts assigned to suppliers, defining the limit of what can be claimed in a dispute.
  • There is a time limit for making a claim; for example, Alibaba’s Trade Assurance protects your order for 30 days after receipt.
  • Your order may not be covered if you don’t follow the Trade Assurance buying process outlined on the purchasing platform.

 

 

 

How to Check Trade Assurance on Alibaba?

To understand how Trade Assurance works for your business, here’s a breakdown of how Alibaba protects its customers when product quality or the ship date does not meet the agreed-upon terms:

  • Select the Trade Assurance filter when searching for a product.

  • Look for the Trade Assurance logo on product listing pages.

  • Choose the ‘Order with Trade Assurance’ button when buying from a supplier you’ve already ordered from.

  • Use the Alibaba Message Centre to ask the seller if they offer Trade Assurance.

 

Follow specific steps to ensure that you can make a Trade Assurance claim if necessary. Communicate with the seller via the platform, request samples, specify shipping dates, and create detailed purchase orders. Payment should be made on the platform or through a reliable wire transfer service, not directly to the seller’s private account.

 

 

 

 

How to Apply Alibaba Assurance Refund?

If you receive the goods, at this time, you should check the quality of the product as soon as possible, because the button for applying for a refund will be closed after a certain time. You should check it in time and contact the seller if you have product quality problems.

However, when you receive the product, Alibaba assurance refund is not an easy task. You will spend a lot of time communicating with the supplier and Alibaba over and over again. !

Basically people must understand that one must have a detailed PI and order contract if he wish to be able to get any funds back, Alibaba does send inspection team to check but the supplier has a list of excuses up his sleeve. only a detailed order and clear communication history will help you refund from Alibaba trade assurance.

 

 

Guidelines for Initiating an Alibaba Trade Assurance Claim:

You can utilize the “Apply for refund” feature on the platform after making your initial payment for the order.

If you’re awaiting confirmation from the supplier regarding the shipment, start by reaching out to them via the Message Center. If the supplier fails to schedule delivery or agree to an extension, you have the option to request a refund from Alibaba.

In cases where the product quality deviates from the order contract, you should request a refund within 30 days of receiving your order.

Once you submit a dispute, both you and the supplier have a 30-day window for negotiations without Alibaba’s intervention. It’s advisable to communicate with the seller through the Message Center to maintain an official record of your discussions and any agreements reached.

 

To further clarify the dispute resolution process, here’s a timeline of key events after initiating a dispute:

    • Day 4: You can choose to escalate the dispute, involving Alibaba for mediation, if the seller has not responded.
    • Day 7: If the supplier has not responded to your proposed solution, the dispute will automatically escalate.
    • Day 7: If you, as the buyer, have not responded to a proposed solution, the dispute will be automatically canceled.
    • Day 30: If negotiations between you and the seller have not led to an agreement, Alibaba will step in as a mediator.

 

 

When Alibaba’s Dispute Mediation Team becomes involved, they will initially request evidence from both you and the seller, typically within 5 working days.

Based on the evidence, they will make a decision, which may include determining whether the seller should cover all costs or if Alibaba will support the return of goods.

 

It’s important to note that there may be a Trade Assurance limit imposed on suppliers.

  • If your order exceeds this limit, your refund will be capped accordingly. For instance, if you have a £15,000 order, but your supplier is only covered for £10,000, Trade Assurance will limit your refund to £10,000. Therefore, it’s advisable to check a supplier’s Trade Assurance limit before placing a large order with them.

 

 

 

Alibaba Trade Assurance Alternative:

Here are some alternatives to Alibaba Trade Assurance for securing your transactions when sourcing from Chinese suppliers:

Payment methods with buyer protection:

  • Escrow: This service holds the payment in a secure account until both buyer and seller fulfill their obligations. Popular platforms like PayPal offer escrow services.
  • Letter of Credit (LC): This is a guarantee issued by a bank on behalf of the buyer, ensuring payment to the seller upon meeting specific conditions (e.g., product delivery, quality standards). It’s a secure option but involves more complex procedures and costs.

 

Third-party inspection services:

These companies send inspectors to verify the quality and quantity of goods before shipment. This mitigates the risk of receiving faulty or incomplete orders. Popular names include SGS, Bureau Veritas, and Intertek.

 

Trade credit insurance:

This type of insurance protects businesses against financial losses caused by non-payment by the buyer or non-delivery by the seller. It can provide security for larger transactions.

 

Independent verification platforms:

Platforms like Alibaba itself (outside of Trade Assurance) or Made-in-China offer verification services where suppliers can be assessed for legitimacy, production capabilities, and past performance.

 

 

 

 

Alibaba Trade Assurance Story:

Alibaba Trade Assurance provides assurance that in the event of discrepancies in product quality or shipment dates from what was agreed upon in the online order, assistance will be offered to reach a satisfactory resolution, including potential refunds.

I recently ordered 200 LED computer fans from a trusted supplier through Alibaba. The shipment arrived more than 30 days late, which I understood due to Covid-related delays.

However, upon opening the boxes, I discovered that the fans were inadequately packaged for international shipping. They were tightly packed without individual protection, resulting in extensive scuffing and damage from vibrations during transit.

Upon inspection, approximately 80% of the units were scratched, and 30 units were broken or cracked. I promptly opened a dispute with Alibaba, proposing a 40% partial refund due to the subpar quality of the majority of the units.

Despite submitting six photos illustrating the damaged units and packaging, the supplier failed to respond within the allotted timeframe. Alibaba requested additional evidence and extended the dispute resolution period by six days. I complied by submitting more photos but was then unexpectedly informed, with only one business day remaining, that further evidence was required.

Feeling perplexed by this sudden demand, I intended to provide the requested evidence but mistakenly believed I had a few more days to do so, as indicated by the timer on the dispute page. Unfortunately, the case closed prematurely, and I received no resolution from Alibaba. Despite investing significant time and effort into providing evidence and engaging in the dispute process, I was left empty-handed.

This experience is particularly frustrating given my previous successful purchases totaling around $10,000 on Alibaba. Seeking assistance from customer support only led to blame being placed on me for not submitting additional evidence within the given timeframe, despite the evidence I had already provided clearly demonstrating the issue.

In summary, I ordered new products but received damaged goods, and despite my efforts to seek recourse through Alibaba’s dispute process, I received no satisfactory resolution.

 

How to Avoid: I Got Scammed on Alibaba?

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