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Alibaba Trade Assurance : Complete Guide 2020

March 4, 2020
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Alibaba Trade Assurance

 

Alibaba is world’s leading website for wholesale purchases supplied from China.

These products are being imported across the world. There is a number of products being sourced through Alibaba. It supports a wide range of products.

There is virtually no limit to the product types. Products types being sold through Alibaba across the world are ranging from small commodities to big machinery.

The reason for popularity of Alibaba is their best wholesale prices. Along with the prices, they can cater to large order quantities and provide best prices too.

Alibaba Trade assurance is a way to protect buyer’s interests.

Alibaba Trade Assurance review

It is a great initiative launched by Alibaba for the buyers. Most of the suppliers have accepted this.

While Trade Assurance on Alibaba is deemed as a good thing. There are certain pros and cons involved as well. There are some suppliers, who will choose not to accept Trade Assurance through Alibaba.

Also, some suppliers have increased prices to participate in Alibaba Trade Assurance policy.

The reason is fairly simple, to accept trade assurance they need to comply certain standards. These standards are set by Alibaba to ensure a trustworthy and reliable transaction between buyer and sellers.

Introduction

Alibaba Trade assurance is a way to protect suppliers. For those interested and participating in the trade assurance, it works as an insurance.

To effectively work with the suppliers through Alibaba, it is a safe practice. Trade assurance can allow you to have the peace of mind that your purchase is protected. It protects your trade not only from the frauds but, is also a great way to have assurance for quality.

It also protects the purchase from receiving any damaged goods.

1.What’s Alibaba Trade Assurance?

Trade assurance is another name of insurance. It is a trade protection initiative launched by Alibaba. The core purpose is to enhance the trust level between buyers and suppliers.

Alibaba being the largest wholesale platform for purchasing in China needed to gain trust of its buyers.

Trade assurance allows suppliers to get the products sourced with assurance of quality. The suppliers that participate are trusted and it is certain that there will be no fraudulent transaction.

There are some eligibility criteria set by Alibaba and your order must meet those criteria to be eligible to apply trade assurance.

It provides 100% cash back guarantee upon fraudulent transactions, and if there are damaged goods.

2.How it works? How does Alibaba Trade Assurance protect buyers?

Alibaba Trade Assurance is totally free to use. It does not cost you any single penny over your purchase amount.

However, there are certain suppliers, who have increased rates for Trade Assurance acceptance. This may cost you a bit more than the regular rates, but is worth each penny being paid to avail trade assurance.

The process is fairly simple. The amount is held by Alibaba until your order is delivered. This way you can be assured that your investment is in safe hands and if any dispute occurs, you can file it with Alibaba.

Alibaba trade assurance protects the buyers with optimal protection on their purchases.

It allows you to file a dispute in case of any issues and you can claim a 100% refund on the amount you have paid.

Alibaba Trade Assurance

3.Main benefits of Alibaba Trade Assurance

Alibaba trade assurance have several benefits for both buyer and supplier.

Besides assuring an agreement and better relation between both.It also makes sure that the buyer-supplier relation is optimal and trustworthy.

To enhance the purchasing process for buyers and suppliers on Alibaba, Trade assurance has several benefits for both buyers and supplier including: 

Benefits for supplier:

Suppliers can get the following benefits by participating in trade assurance program.

  • More orders.
  • Settling their own order quantity.
  • Getting better rates for their products.
  • Order compliance.
  • Best customer relations.

Benefits for Buyers:

Buyers also have certain benefits by following the trade assurance and finding the supplier that accepts trade assurances.

These benefits include but are not limited to:

  • Ensuring safe transactions.
  • Safety from frauds.
  • Protection for safe transit.
  • Insurance against damaged goods.
  • Claims for sub-standard products.
  • Timely delivery.
  • 100% money back guarantee.

Main benefits of Alibaba Trade Assurance

4.How to Create an Alibaba Trade Assurance Order?

For those who have studied about Alibaba Trade assurance and want to use it. It is important to know how you can create an Alibaba Trade assurance order securely.

There are certain important parameters involved and you need to know them all to get the right Trade Assurance services.

You need to take care of the following steps while creating an Alibaba Trade Assurance order:

Step1: Check Your Supplier’s Trade Assurance Limit

Suppliers on Alibaba have Trade Assurance limits. These limits are the maximum amount they can participate for the Trade Assurance Program.

The Trade Assurance limit of a certain supplier is granted by Alibaba to them. This limit is based on their experience, business reputation and the amount for trades they have made in the past.

You must ensure that the Trade Assurance limit of the supplier you will be choosing should exceed your order quantity.

Step2: Create the Product Specifications and Delivery Terms

To ensure a flawless transaction, it is important that you specify all the product specifications in the right format.

For this purpose, you need to send some specifications like:

  • Product design file
    If you are buying products from suppliers on Alibaba and want to have them branded according to your design. It is recommended that you send your supplier the product design file instead of a photo.
  • Quality requirements
    You must have some quality requirements for the products you are looking to source. To ensure that you will get the right products and have evidence if you have to file a dispute. You need to specify exact quality requirements. You can specify the color you want. The weight range, and material that you need.  This will enable you to have an evidence in case you need to file a dispute.
  • Quantity 
  • It is highly important that you specify the exact quantity of products for your order. This will ensure that you can file a dispute later if there is a shortage in quantity. 
  • Packaging details
    For the packaging details, there are often requirements from your country to have these products imported. You should specify, how many products you need to be packed together and what material should be used for the packaging.
  • Shipment Date
    You must enter the date instead of saying ship in a specific month. This will ensure that you get your products delivered in time. If supplier fails to ship the products on specified date. They can ask you to revise it in Trade Assurance order. There is also option for you to open a dispute in case of late delivery.
  • Customization Specifications
    If you need to have the products customized, you need to specify the details clearly. Logos, badges, printing, color and packaging must be communicated to the supplier.

Step3: Choose Coverage Type for Your Order

Coverage type allows you to choose the right coverage for your order. You have the options to either choose pre-shipment coverage and Post-delivery coverage.

Now, if you have chosen pre-shipment coverage. Your down-payment is protected against it and you can file a dispute if any problem occurs.

And, if you have chosen post-delivery coverage. That means that your whole order is protected if within the limits of Trade Assurance limit of your supplier. I

n case of a dispute and supplier being guilty. Your whole payment will be refunded.

Suggested reading: How to order from alibaba : ultimate guide 2020

Step4: Confirm your order and Make Initial payment.

You can negotiate the initial payment with your supplier. Once decided, you need to complete the order and make initial payment.

5.How to Pay an Alibaba Trade Assurance order?

Alibaba is the world’s largest wholesale trading website from China. It is renowned across the world. People all over the world use Alibaba.

It supports a huge rang of products. The buyers are of different origin and may use different currencies. There are also different methods being used to by them.

For the convenience of buyers, Alibaba supports a number of transaction methods.

However, you need to use only these payment methods if you want to ensure Trade Assurance. These methods are:

  • Online Bank Payment:
    Online bank payment is the most safe, secure, cheap and convenient way to transfer your payments. Be mindful that, to be eligible for Trade Assurance. You need to transfer the amount to Citibank account. The amount will be held in the account until you conduct quality inspection of the purchase.
  • Credit Card (Visa or Master Card)
    Credit cards are useful as Visa and Mastercard may get involved and conduct their own investigation in case of a dispute. This payment method is efficient only for smaller purchase amounts. As most suppliers will not accept credit card payments on larger orders.
  • Alibaba Pay Later
    Pay Later is a great initiative for those who do not have the funds at hand. It allows you to apply for a credit of up to $150,000 from third party partners of Alibaba. Alibaba Pay Later has no additional processing fee and it can be used for your Trade Assurance order.
  • Telegraphic Transfer (T/T)
    Telegraphic transfer is the most popular for B2B transactions. It supports a wide range of currencies. There are also no transaction limits for Telegraphic Transfers. Hence, it is the most widely used transaction method for payments on Alibaba Trade Assurance orders.
  • Western Union
    Western union is only accepted from US buyers and on small order quantities. It is the right choice for you if your order amount is less than $2500.
  • E-Checking
    E-checking is the recommended method from Alibaba to make transactions. It has fixed transaction rates for the convenience. However, it is available for the US citizens only and supports USD only.

Suggested reading: How To Pay On Alibaba Payment : Ultimate Guide 2020

6.How to Open a Dispute if You Receive Defect Goods?

If you happen to face some issues with the products you have bought from Alibaba. You can always open a dispute.

Alibaba team will look into the evidence one you have opened the dispute and settle the matter for you.

The dispute can be opened if you receive defective goods, late delivery or any other specifications are not met.

You have to open a dispute within “30 Days” of confirming the receipt of goods.

Dispute if You Receive Defect Goods

To open a dispute the right way, you need to follow these steps:

Step1: go to Order List Page and click “Open a dispute” and “Apply for refund”

To open a dispute, you need to go to the order list page, select the order you want to pen a dispute for and then click on “Apply for Refund” button.

Step2: Fill in the Dispute Form and Upload Evidence 

There are certain files you will need to upload in case you are opening a dispute. These files will be required by the Alibaba team to assess your claims.

Certain evidences are also required including:

  • A signed copy of PO (Purchase order)
  • Documents related to your specifications while placing the order.
  • Documents related to design.
  • A copy of inspection report.
  • A copy of all communication report with the supplier.
  • A signed copy of transaction receipt.
  • Significant evidences for strengthening your claim.

Step3: Wait for Suppliers’ response or Escalate it to Alibaba dispute team

Once you have submitted your dispute documents, the supplier has a response time of 5 days. The supplier will reply within 5 days for an effective resolution.

If the supplier doesn’t reply within 5 days, or you are not satisfied by the resolution provided.

You always have the option to escalate it to Alibaba Dispute handling team.

Dispute resolution and refunds

Alibaba has a dedicate team to look into dispute and provide you with a resolution. The team thoroughly goes through all the documentation and evidence provided by you.

If the evidences are sufficient and supplier is at fault, you will get full refund on the amount of order you have placed with Trade Assurance.

Why Alibaba may reject a refund

There are also certain things you must keep in mind while opening a dispute. You must have all the required evidence to open a dispute and be eligible for a refund.

Alibaba may reject a refund even if the supplier is at fault in any of the following cases:

  • You have not provided clear product specifications while ordering the products.
  • You did not book a quality inspection while ordering the products.
  • You discovered the quality issues after you have received the product in your country.

7.How to Inspect Quality before Shipment or after Products Received?

There are certain effective ways that you can choose from to inspect the quality of products. You must have quality inspection done on the products to ensure you get the right quality products only.

Inspect Quality

The methods or times to have these products inspected for quality are:

a.Quality Inspection before Shipment

Most buyers and suppliers do not inspect the quality of products before shipping these.

However, it is the most effective and cost-efficient method. By having the quality inspection before the products are shipped, you can ensure that you are getting the right products.

This also reduces the delivery costs as if any defects found, the products can be returned to the supplier right there. The best way to inspect the quality before shipment is to do it yourself.

Although, if for some reasons you cannot do that. There are third party services such as leelinesourcing that provides you with pre-shipment quality inspection service.

Alibaba also offers quality inspection service before shipment and is the most secure service for buyers.

b. Quality Inspection after delivery 

After you have received the products and paid full amount for your purchase. To open a dispute, it is mandatory for you to have a third-party company in your country inspect the products for quality.

The third-party company you use should be reliable and well reputed.

It will be hard for you to get a refund, if there are no third-party inspection companies are involved.

c.How to define your product specification

There are certain chances that you may not get the products that you have ordered. Due to huge volume of products, there are certain manufacturing faults expected.

There is also a possibility of getting diversity in the color, shape or size. To avoid any such inconveniences, and to be able to claim a refund in such unfortunate cases.

You should be specifying your product requirements effectively.

You should mention several things like:

  • Exact dimensions of the products.
  • Color that you want, with details of shade.
  • Material specifications.
  • Packaging requirements.
  • The shipment Date.

It is important that you provide these details to the supplier clearly while placing an order.

8.Can I trust Alibaba Trade Assurance?

Yes, you can definitely trust Alibaba Trade Assurance. It is a purpose-built initiative, focused on increasing the trust of overseas buyers.

Alibaba Trade Assurance is the right way to make your purchases secure.

However, there are certain complexities involved and if you fail to fulfil any of the requirements. You might not be able to claim a refund.

Hence, it is important to have assistance from the experts who can help you through the process.

9.How much are the Trade Assurance fees?

There are no fees to use Trade Assurance services.

However, there are certain transaction fees applicable. The payment is held by Alibaba in the designated accounts and is not paid to the supplier directly.

These payment rates may vary depending on your payment methods and these rates are:

  • Credit Card: 2.95% of the order value
  • Western Union: US$ 4.9-$45
  • T/T (Telegraphic Transfer): US$30-$50
  • Alibaba Pay Later: Free

10.Does Trade Assurance enable me to return products I am satisfied with?

No, you can not return the products through Trade Assurance if they meet all the requirements said. If you want to use Trade Assurance and claim refund on your purchases.

Your products must be defected or have the late delivery than promised by the supplier.

Alibaba Trade Assurance is a safety program for both buyers and suppliers and protects the interests of both.

Hence, it can only be used to open a dispute if the products you have received are damaged, not as you specified them or defected.

11.Can all Alibaba suppliers offer Trade Assurance payments?

No, all Alibaba suppliers do not offer Trade Assurance payments. Trade Assurance payments are offered by some suppliers only.

Alibaba has set several parameters to ensure that only trusted and reliable suppliers can participate in the Trade Assurance program.

These parameters are based on the experience, reputation, product quality, quantity of the products they can sell, and the number of transactions they have had in past.

Suggested reading: How to Find the Best manufacturers on Alibaba

How Leelinesourcing Help you buy from alibaba safely

Leelinesourcing Who Provide factory audit and Pre-Shipment Inspection help you buy from alibaba safely.

Alibaba Trade Assurance is a great way to have your products sourced safely from the suppliers.

However, there are certain technicalities involved that a layman cannot easily understand. You must have the quality inspection done on the products before shipment.

This allows you to save on the shipping costs and have the evidence for you if you want to open a dispute with the supplier.

Leelinesourcing is the top company that can offer you to conduct a factory audit for you supplier. Factory Audit can help you know about their production ability and the quality standards being followed by them.

Leelinesourcing also provides you with the best pre-shipment quality inspection services.

With the help of leelinesourcing, you can have a considerable evidence to open a dispute if the products are sub-standard or do not meet your requirements.

Final Thoughts on Alibaba Trade Assurance

While Alibaba Trade Assurance is an efficient way to conduct safe transactions. It might not be beneficial for all. There are certain complexities and order criteria involved that you must know of.

Not to mention the additional transaction fees and the increased rates from the suppliers.

Hence, if you want to use the Alibaba Trade Assurance, you must study all the required parameters thoroughly.

Also, you can get help from Leelinesourcing to have your products inspected before they are shipped.


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FOUNDER’S NOTE
LeelineSourcing will always help you buy cheap and good quality goods from China.

sharline leelinesourcing founder

About the author

Sharline is the founder of LeelineSourcing.com. With 10 years of experience sourcing in China, She loves to share knowledge and ideas in sourcing bussiness.She writes only the truths which others are normally not willing to tell. This makes her posts distinguishable from other import & export articles.
1 Response
  1. Tanya
    Reply

    Hi Sharline, Thank you for your article on Trade Assurance. I am trying to find out if I accept an order which has a ‘failed’ inspection am I still covered by Trade Assurance. There were 2 failed items. The full number of items were not yet ready for inspection (90% was) and that there was a larger gap on the inside on the carton between the product and stock, meaning there could be movement. The supplier says ‘if there be a problem with the product, we will be responsible for it’.
    Do you know if I accept the order as is, am I covered by Trade Assurance for any other issues that might be seen upon my inspection?

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