Alibaba Group launched a Trade Assurance program, which provides a money-back guarantee for buyers trading on Alibaba’s e-commerce platform. It is now limited to transactions completed via bank transfers and it only covers Chinese suppliers.
It will soon also cover purchases made with credit cards and extended to other manufacturers and distributors in other countries. India will be the next country added.
Already 54,000 Chinese suppliers, or about half the number that offer to fill bulk orders on the Alibaba site, participate in Alibaba’s Trade Assurance program. An Alibaba subsidiary called OneTouch vets companies that wish to participate. If a buyer purchases from a participating supplier Alibaba will refund the buyer’s deposit, up to a specified amount, if the goods are not delivered on time or are not of the quality specified.
The Alibaba Supplier Vetting Scheme will be an opportunity for credit information companies located outside China. Credit insurers may fear that an expanded Alibaba Trade Assurance program will negatively impact their business.
Source: B2B E-Commerce