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 achieves certain details of their contract with the buyer. Trade Assurance is available to all of Alibaba.com’s millions of global buyers that are ready to trading internationally.
According to recent analysis from Frost & Sullivan research company, B2B online sales will likely hit USD 25 trillion USD by 2020, accounting for close to 27% of total global manufacturing trade. Buying online from traders across the globe gives businesses access to a wider range of products, but some businesses, especially small and medium businesses, are often reluctant to trade across borders due to concerns about payment security or product quality.
The payment protection service is currently available from participating suppliers in China with plans to roll out the service to global suppliers in the near future. Alibaba.com will refund up to 100% of the Trade Assurance Amount 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 contract .
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.
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