Alibaba issues official statement on Trade Assurance launch
China’s e-commerce giant Alibaba has issued an official statement announcing the launch of its Trade Assurance programme. In the statement issued on Wednesday (20 May), the company commented: “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 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.”
Wu Min Zhi, Senior Vice President, Alibaba Group, commented: “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.
“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.
Alibaba previously ‘soft-launched’ the Trade Assurance programme at the ASD Marketing Week show in Las Vegas in March.
As previously reported, there have been concerns about the alleged presence of counterfeit goods on Alibaba’s e-commerce websites. The Paris-based Kering Group – whose luxury brands include Gucci and Yves Saint Laurent – filed a lawsuit against Alibaba in a Manhattan federal court earlier this month.
The news of the lawsuit was widely reported on Tuesday, 19 May – the day before Alibaba issued its announcement on the Trade Assurance programme.
