How does Alibaba Trade Assurance work? Everything you need to know!

by Tim Howard

Into the World of Alibaba and Its Trade Assurance

Alibaba is one of the most popular platforms for online trading, offering a wide variety of products and is currently the largest Chinese e-commerce company having 863 million active online buyers. One of the features that sets Alibaba apart from other platforms is its trade assurance service. If you’re planning to start a dropshipping business with Alibaba, you need to have that trust between buyers and suppliers. And that’s where Alibaba’s trade assurance steps in!

Alibaba Trade Assurance in a Nutshell

Alibaba Trade Assurance is a popular feature on the Alibaba platform, offering buyers and suppliers protection and confidence during transactions. If you’re new to Alibaba, or simply curious about how Trade Assurance works, we’ve compiled a list of 10 facts about Alibaba Trade Assurance that you should know.

  1. Trade Assurance is a free service on Alibaba

    First and foremost, it’s important to note that Trade Assurance is a free service provided by Alibaba. It’s available to all registered buyers and suppliers, and you don’t need to pay any additional fees to use it.

  2. It protects both buyers and suppliers

    Alibaba Trade Assurance offers protection for both buyers and suppliers. Buyers can feel confident that they will receive the products they ordered on time and in good condition, while suppliers are protected against non-payment.

  3. There are different levels of protection

    Alibaba offers different levels of protection within Trade Assurance, depending on the supplier’s qualifications and the amount of the transaction. Higher levels of protection are available for Gold Suppliers and those who have completed Alibaba’s verification process.

  4. Payment is held in escrow

    When a buyer places an order through Trade Assurance, their payment is held in an escrow account until the order is completed. This provides an additional layer of protection for both the buyer and the supplier.

  5. Deadlines are enforced

    Trade Assurance sets strict deadlines for order completion and delivery. If a supplier fails to meet these deadlines, the buyer may be eligible for a refund.

  6. Dispute resolution is available

    In the event of a dispute between a buyer and a supplier, Alibaba provides a dispute resolution service. This service is designed to help both parties come to a fair resolution.

  7. Alibaba will investigate suppliers

    Alibaba takes the quality of its suppliers seriously, and will investigate any complaints made by buyers about a supplier’s products or practices.

  8. Trade Assurance is available worldwide

    Trade Assurance is available to buyers and suppliers all over the world. This makes it easier for businesses to trade across borders with confidence.

  9. It’s easy to use

    Using Trade Assurance is simple and straightforward. Buyers can simply select the Trade Assurance option when placing an order, and suppliers can apply for Trade Assurance through their Alibaba account.

  10. It’s a popular feature on Alibaba

    Trade Assurance is a popular feature on the Alibaba platform, with many buyers and suppliers relying on it to ensure safe and secure transactions. In fact, as of 2021, over 97% of Trade Assurance orders are completed without issue.

    Overall, Alibaba Trade Assurance is a valuable tool for businesses looking to trade on the platform. It offers peace of mind for both buyers and suppliers, and helps to facilitate safe and secure transactions. Whether you’re a new buyer or a seasoned supplier, Trade Assurance is definitely worth considering.

Alibaba Trade Assurance – How does it work?

The Alibaba Trade Assurance is a coverage that helps businesses in need of extra assurance. As an intermediary, the company works to mediate between buyers and sellers by allowing them to transfer funds from orders made on its site onto a designated Alibaba bank account with Singapore City Bank for safekeeping until delivery or pickup has been confirmed.

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It is a form of payment and buyer protection service that offers additional security when buying products from suppliers in China. This way, you are insured that your products will be delivered undamaged should any problems arise with shipping or delivery during the transportation period. The funds get transferred automatically at the time set out before purchase so there’s no need to worry about managing cash flow!

No sooner than the products have passed the quality check and dispatched on or before the decided date, Alibaba releases the funds.

However, the money can also be refunded to the purchaser under the following circumstances:

1.       The quality of the manufactured products is not up to par with your quality requirements and does not pass compliance tests.

2.       The shipment has been delayed, and it is past the estimated shipping date.

In what way does Alibaba Trade Assurance protect buyers?

There are two ways by which Alibaba Trade Assurance protects you as a buyer:

·         If the products are not shipped within the specified time as mentioned in the agreement

·         If the product features differ from the description as declared in the agreement

Alibaba has created a system where buyers can pay sellers in cash, bypassing the need for payment via bank transfer. This is done by having Alibaba act as an intermediary and collect both sides’ payments directly from their accounts at banks locally–Alibaba will then submit these funds together on your behalf so you don’t have to take up the responsibility yourself.

How to use Alibaba Trade Assurance?

To use Alibaba Trade Assurance, you must follow these steps:

·         Place your order with a Trade Assurance supplier. You can do this by ordering online or asking your supplier to draft one for you. For added convenience, it is recommended uploading your proforma invoice (PI) on the site so that there are no delays in the processing time. Once it’s uploaded, it saves both money and headaches down the road.

·         Make your payment to the bank account designated by Alternatively, you can also choose to pay via Credit Card, e-Checking or Telegraphic Transfer (T/T). You can find all the necessary information about the beneficiary account on the order details page. If you are buying from Brazil, using Boleto is a preferable option. Some buyers from the US can also opt for the Pay Later option.

What is the payment process on Alibaba Trade Assurance platform?

Here’s a brief explanation of the payment process on Alibaba Trade Assurance:

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·         Use Trade Assurance to place your order

·         Communicate with the supplier by using Alibaba Trade Center (you can find it under ‘My Alibaba’ section)

·         Make a Purchase Contract on It is important to remember that this contract is only applicable for the products. Replacements, warranties or other services confirmed between the buyer and Alibaba supplier are not covered under Trade Assurance

·         Confirm contract

·         Choose your payment method – Credit Card or Telegraphic Transfer and make the payment only to the bank account allotted in Singapore.

Can I use Trade Assurance to return products I am not happy with?

No. You can only use Trade Assurance if it is clearly demonstrated that the supplier couldn’t fulfil your pre-requisite quality requirements. It is useful to note that Alibaba Trade Assurance is not a substitute for proper business insurance.

Do all Alibaba suppliers provide trade assurance payments?

Unfortunately, the Trade Assurance service is not offered by all suppliers. Only eligible Alibaba Gold Suppliers can offer this service to buyers. Alibaba’s Trade Assurance is a great way to make sure you’re covered for any transactions that are registered through the Alibaba checkout system. The protection plan only applies once payments have gone into an account specified by them.

How to apply for Alibaba Trade Assurance?

Follow these steps to apply for Alibaba Trade Assurance:

1.       Firstly, you must complete payment for Gold Supplier membership as well as the verification and authentication procedures.

2.       Next, sign in to your account.

3.       Go to the ‘Help Center’ option on the left-hand side.

4.       Click ‘Authentications & Verifications’ and then ‘Get verified now’.

5.       A popup box will appear. Click the box that says ‘I have read and agreed to these rules and Trade Assurance Services Agreement.’

6.       Finally, click on ‘Apply Now’.

7.       Fill up the details in the form fields. Make sure you write the name of the director or owner of the business in the ‘Full legal name’ field.

8.       Click ‘submit’.

Usually, it takes 2 business days to receive the results.

There are other ways to register as well:

1.       Sign in to your account.

2.       Go to the navigation on the left-hand and click ‘All orders.’

3.       Click ‘Draft Trade Assurance Order’.

4.       You can log in to your account here and read more about Trade Assurance to read more.

only if you’ve been a paid member before July 25, 2019.

Questions around Alibaba Trade Assurance.

How to find Trade Assurance suppliers?

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You can find Trade Assurance suppliers on Alibaba in the following way:

·         While searching for products, refine the search result by opting for ‘Trade Assurance’.

·         Check the minisite of the supplier to know if the Trade Assurance icon is there on the page.

Can Alibaba reject a refund? may fail to issue a refund due to three reasons:

·         The product specifications are not clear

·         It is only after the consignment arrived in your country that you discovered quality issues

·         When placing the order, you did not book a quality inspection

When it comes to payments, how safe is Alibaba?

Your money is protected by the Trade Assurance service when you pay for your shipment by using the Alibaba Secure Payment. For your information, the Secure Payment service is driven by Alipay and is one of the most reputable online payment service providers in China.

Alibaba holds the money that you pay as the initial deposit or balance for your order. This implies that Alibaba now functions as the intermediary agent between the buyer and seller. This process is referred to as the escrow system.

The funds are released by Alibaba to the supplier only when both the buyer and seller approve that the transaction is complete and the buyer is satisfied with both the delivery and quality of the product. However, in case you’re not satisfied with the product, Alibaba will refund your money as soon as possible and you don’t need to go behind the seller, following up for your refund.

Final Words: With this, we come to an end of our discussion about Alibaba Trade Assurance. Alibaba Trade Assurance is a service that provides sellers and buyers with the peace of mind when they need to do business on this giant e-commerce platform. It ensures your purchase will be delivered on time and if anything goes wrong in transit or within one year after delivery, you’ll receive complete coverage for whatever reason—no questions asked! In a nutshell, that’s the Alibaba Trade Assurance service. We’ve covered how it works and what’s covered in this article as well as some tips on raising your dispute if needed! You will need to make sure you choose the right seller before paying through their online platform or else qualify for nothing but peace of mind with complete coverage from our company. Whether you’re buying from Alibaba for the first time or not, there are several ways to protect your order. For instance, you can avail production monitoring and inspection services that involve a local third-party inspection service that will visit the seller’s location to make sure everything is functioning seamlessly. There are multiple ways to order from Alibaba and they have a safety net just in case you run into any problems.

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