Facts About the Alibaba Fair Play Fund

Seminars on How to Sell to Consumers in China: Atlanta and Seattle

noreply@blogger.com (About Alibaba Fair Play) — Thu, 12 Jul 2012 12:43:00 +0000

I am late to the party in discovering this, but Alibaba, in conjunction with ExportNow and Tmall.com, is running a series of seminars in the U.S. this week and next week all about selling products to consumers in China using e-commerce.

The schedule is (was):

Chicago, Il (July 10)
Detroit, MI (July 12)
Atlanta, GA (July 13)
Seattle, WA (July 16)

If you live in Atlanta or Seattle and are interested in attending, you can get more information and sign up here.

Video about the seminar and some footage is below. Looks interesting.

Enjoy.

Top Ten Things to Know About the Alibaba Fair Play Fund

noreply@blogger.com (About Alibaba Fair Play) — Fri, 22 Jun 2012 12:20:00 +0000

Everyone (David Letterman, especially) likes a Top Ten list, right?

Well, I have gone through and compiled the top ten things that you should know about the Alibaba Fair Play Fund. Some of it may be repetitive or already has been mentioned on Alibaba Fair Play Facts, but it never hurts to have a list in one place, especially if you have been scammed or defrauded.

Here does:

Top Ten Things To Know About the Alibaba Fair Play Fund

The Alibaba Fair Play Fund was established in 2009 and covers disputes between buyers and Alibaba Gold Suppliers. If you think that you have been defrauded, you may be eligible to apply for compensation.
The Fair Play Fund is a process; if a buyer feels that she has been defrauded, she can present a claim and start a process - but it involves due process of substantiating a claim.
Alibaba helps both buyers and suppliers by providing assistance in compiling documentation and other evidence to resolve business differences, and when necessary, to pursue legal claims.
To help avoid complaints, Alibaba provides supplier verification services as well as inspection services.
Since it's inception, 2,700 complainants with substantiated claims have benefitted from the Fair Play Fund.
There are eleven million registered users on Alibaba.com, and 2,700 substantiated complaints works out to .02% of all transactions.
Less than 0.05% of buyers have reported potentially fraudulent activity.
Alibaba has paid out more than US $2,200,000 since the Alibaba Fair Play Fund started in 2009.
Pay-outs are not dollar-for-dollar. Claimants with losses of US $1,400 or less are eligible for 70 percent of amount lost. Claimants with losses greater than US $1,400 will receive a maximum of US$1,000. Two-thirds of complainants lost less than US $1,000 to fraud.
DO YOUR HOMEWORK FIRST on potential Alibaba.com Gold Suppliers and perhaps you can avoid scam and fraudsters altogether - and not have to use it.

Hilarious Alibaba "Fail Safe" Video

noreply@blogger.com (About Alibaba Fair Play) — Wed, 13 Jun 2012 12:22:00 +0000

I think this video shows that someone at Alibaba.com has a really good sense of humor. This is one of a series of videos called "Fail Safe." It's topical, timely and funny as well.

Check it out.

Why Does the Alibaba Fair Play Fund Have a Process?

noreply@blogger.com (About Alibaba Fair Play) — Tue, 05 Jun 2012 18:12:00 +0000

I don't know how many transactions take place on Alibaba.com, but one must assume that there are millions. Pulling numbers out of the air (STRESSING: I am inventing these numbers), if you figure that there are 10,000 transactions on Alibaba.com that take place per day, that's 3,650,000 transactions per year. According to Alibaba, less than .05 percent of registered users have reported potentially fraudulent activity. That is a small, small number.

Let's say that the unfortunate ones who get ripped off don't get a response from the supplier, or something else goes wrong and they lose money. What do they do? Well, duh, this Web site is all about the Alibaba Fair Play Fund, a program that was set up to help defrauded buyers get some of their money back. So there is a way to go about it. But that's just it. There is a process.

Alibaba is a big company, but if you work with big numbers, you have to assume that there are a large number of claims coming in to the Fair Play Fund. If you used my made-up numbers and take .05 percent of the total transactions (as approximated by Alibaba.com), that's still 1,825 potential claims for the Fair Play Fund. What company could easily juggle 2,000 fraud claims at the same time?

That's why there is a process set in place to establish and verify a claim - no company could possibly have the resources to manage thousands of claims without having a way to collect the right information, attempt to communicate with both the buyer and seller, and determine who has been wronged. I don't know how much time it takes to process a claim, but according to Alibaba, it can take between two weeks and two months depending upon the complexity of the case.

All of this again tells me that Alibaba.com is doing the right thing by providing due process for both the buyer and the seller, and also by providing a compensation fund for harmed buyers.

There's more information laid our in the Alibaba Fair Play Fund FAQ.

Five Steps to Avoiding Fraud on Alibaba.com

noreply@blogger.com (About Alibaba Fair Play) — Tue, 22 May 2012 17:47:00 +0000

Alibaba.com has been in the news a lot lately because of its upcoming vote to go private along with selling back shares to Yahoo! Behind the news stories are the millions of transactions that go through monthly (daily?) that are successful and leave both the buyer and the seller happy. When you have millions of transactions, some will go bad. It's the law of averages.

Like shopping for about anything from a toaster to a car, you need to do some basic research in order to ensure that you'll end up happy with what you have purchased, and this is especially true when dealing with suppliers as far away as China.

So after having been at this blog for a while, I have come up with some tips that I think can help you avoid scams and fraud on Alibaba as well as having to make use of the Fair Play Fund, the turn of last resort if you have been defrauded.

Top Five Steps for Avoiding Fraud on Alibaba.com

Check the list of banned suppliers on Alibaba.com. If a company is investigated and found to have defrauded a buyer, they will be banned from the site and their name will appear in this section, which is usually updated monthly. So start here.
Google the company. It's sounds simple, but if people are happy, they may say something on on the trade forums or their own blogs, but if they feel that they have been defrauded, you can be almost 100 percent certain that there will be an online trail of unhappy customers. Conversely, if you find an Enlish-language Web site with information about the company that looks legitimate, all the better.
Try calling the company. I don't speak a word of Mandarin, but if a supplier is hoping to do business with the English-speaking public, you have to assume that there will be someone there who speaks passable English and who can converse with you. And make sure you are calling a business, not some guy's cell phone.
If you are really serious, investigate the Verified Gold Suppliers on Alibaba.com. If verified, Gold Suppliers (according to the Safety and Security Center on Alibaba.com) will have had one of these two: "a) A&V Checked suppliers are Gold Suppliers who have passed authentication and verification inspection by Alibaba.com as well as a third-party verification company. All legal business licenses and contact persons are verified for those who have been A&V Checked, or b) Onsite Check is a verification process for China Gold Suppliers. Personnel from Alibaba.com visit suppliers’ premises to verify ownership of the premises. The suppliers’ legal status and other related information are then confirmed by a third party verification agency."
If you are ordering a large quantity of items, ask for a sample. It's perfectly fine to pay for a sample, but if you are ordering 1,000 widgets, ask the company to send you five and test them out: see how the process goes and how long it takes to get you what you asked for.

These five tips are not rocket science, but simply represent some simple, quick ways that you can take advantage of services that are available to you.

Fair Play Fund: When to Blame, and When to Claim

noreply@blogger.com (About Alibaba Fair Play) — Tue, 15 May 2012 14:46:00 +0000

I like reading Alizila, the blog that was created by Alibaba to give a pretty objective view on all things Alibaba. Read it: you will see that they do not pull punches and call it like they see it. It's not a mouthpiece for the company.

This site, however, is dedicated to raising awareness of the Alibaba Fair Play Fund, a fund that helps buyers recoup a portion of their money when they are proven to have been defrauded on the Alibaba platform.

In his Alizila post, "Who is to Blame for E-commerce Fraud?," editor Jim Erickson points out that in a recent court case, Alibaba.com was cleared of liability for the sale of counterfeit products by a Chinese supplier using the website. More information is here, but the court case reinforces the fact that Alibaba is simply a platform that connects buyers and sellers; it's like eBay or Craig's List.

Although this court has recognized that Alibaba is not liable for misdeeds carried out by their suppliers, they still take their facilitation role seriously. If buyers get ripped off or scammed, they can still get compensation through the Alibaba Fair Play Fund. I have written about it extensively, but essentially if you are defrauded, go through the Alibaba arbitration process and can prove fraud, you can get back some of the money that you were scammed out of.

So if you are an Alibaba user, do your homework first to avoid scams and fraud. And if by chance you fall victim, know the ins and outs of the Alibaba Fair Play Fund. You can get money back.

Avoiding Fraud on Alibaba.com: Alibaba Onsite Check

noreply@blogger.com (About Alibaba Fair Play) — Fri, 27 Apr 2012 15:10:00 +0000

I am not sure who first said this, but someone once said "you can believe me, or you can believe your lying eyes." I'd go with the eyes, thanks.

Onsite Check Icon

For people who are lacking experience in sourcing materials from other countries, especially China, it can be intimidating. Alibaba.com has a wealth of information on how to do your homework and avoid fraud in the Safety and Security Center, but they too believe in "laying eyes" on a vendor's premises through their program, Onsite Check.

What is Onsite Check?

Onsite check is a verification program launched by Alibaba.com for Gold Suppliers in mainland China. Simply put, it means that an Alibaba.com representative has visited a supplier's place of business and many important aspects that prove that it is a legitimate business. They check out the supplier's:

Business license
Main product lines/services (up to five product lines/services)
Business type (trading company, manufacturer or both)
Company location
Head of the department responsible for their company website on Alibaba.com
Contact information (e.g. telephone number, address, etc.)
Certifications (e.g. product certificates, export/import license, etc.)
Bank account
Factory location
Premise size
Number of employees
Certifications of subsidiares, partners, and contractors

I am not in a position to offer advice (nor would I ever) on whom to source from on Alibaba.com, but if it were me, I would be much more inclined to trust a supplier whose business had been validated and verified.

More on Avoiding Scams on Alibaba.com

noreply@blogger.com (About Alibaba Fair Play) — Thu, 26 Apr 2012 13:49:00 +0000

You don't buy something from someone who comes to your house with a sales pitch, do you (except maybe Girl Scout cookies, and those are just irresistible). So if you would not buy something from someone who comes to your door, why would you buy an item (or thousands or items) from someone in China without doing your due diligence?

Alibaba.com is the world's largest e-commerce trading platform, but the key word in that sentence is "platform," as in "we build it and they come." They have build a technology that connects buyers and sellers. It's like eBay or any other web site that connects buyers and sellers.

Avoid fraud on Alibaba.com by trading safely

Fraud happens. Online fraud happens. Fraud from China happens. With millions of customers, even if a small percent are scammers, you have a chance of being defrauded on Alibaba.com - if you don't do your homework and TRADE SAFELY.

The information on Alibaba.com changes frequently, but they have a new service whereby you can do some research and find out if you have encountered one of the bad guys: their Alibaba Safe Trading Guide. And understand that Alibaba is a company that metes out justice, but they have an investigation first. So when a buyer complains and the claim is substantiated, the seller could be banned from the site and the fraud victim may in fact be eligible for a payout from the Alibaba.com Fair Play Fund. A good FAQ on the Alibaba Fair Play Fund is on my other site.

Doing your homework and research first step in your fraud protection plan.

Top Ten Signs of Online Scams

noreply@blogger.com (About Alibaba Fair Play) — Wed, 11 Apr 2012 15:37:00 +0000

Build it, and they will come. Scammers, that is.

When you have a platform as big as Alibaba.com, as I have mentioned before, if even one percent of one percent are fraudsters, someone is going to get scammed. Alibaba.com is a platform that connects people, not a store. Note: as I have said, if you have a dispute that cannot be resolved through normal means, you can always apply to the Alibaba Fair Play Fund.

From time to time, I'll hit the Alibaba.com Safety and Security Center to see what's new. Recently, they posted their Top Ten Signs of Online Scams.

The whole list is here, but it includes things like promises that seem too good to be true (they often are), agreements in which you have to pay up front, or someone being overtly friendly the first time they correspond with you ("Dearest Ernest...").

Have a read here. It's worth getting smart knowing how to spot online fraud if you are on the Alibaba.com platform.

Alibaba's Next Scam Catcher Could Be... YOU!

noreply@blogger.com (About Alibaba Fair Play) — Fri, 02 Mar 2012 15:35:00 +0000

The world's largest e-commerce platform, Alibaba.com does not cease to amaze me. It hard - really hard -when you are simply a platform that connects buyers and sellers, yet your feet are held to the fire regarding millions of users. Even if a small portion of them commit fraud or scams, it can come back to bite you.

Now they are looking for additional forum monitors. I think it's cool, because few people know the forums better than the people who are on them constantly. Check this out:

2012 is coming, wish everybody in our forums Happy New Year!

Due to the rapid growth of our forums, we're looking for more moderators. We want to hear from members who have the expertise and time to ensure posting activities meet world-class business standards. The valid date is from 2012 to 2013) If you have such experience is better:

More than 1 year business experience

Familiar with our forums and your answers to other members is more than 6 and the quality is high

Happy to help forum members out of their problems

If you're interested and qualified, please tell us a little bit about yourself and what sense of oversight you can bring to our discussion forums by clicking reply below. Suitable applicants will be contacted directly by Administrator (Carol). Alibaba.com Forum.

This is a really interesting development, and one that could help keep buyers and sellers informed as well as avoid fraud, scams and the Alibaba Fair Play Fund.

About the Alibaba.com Fair Play Fund

noreply@blogger.com (About Alibaba Fair Play) — Thu, 01 Mar 2012 15:28:00 +0000

Cross-posted from Facts About the Alibaba Fair Play Fund.

I have said many times in this space that information can be hard to find on Alibaba.com. For this reason, when I pluck out a few interesting nuggets, I like to share them, and sometimes, make them a little more intelligible. Let me stress a couple of things that will help simplify this:

Alibaba.com is a platform. It's software that like eBay, connects buyers and sellers. In the grand scheme of things, it's zeros and ones in cyberspace. That's it. When buyers and sellers get connected, if one percent of one percent of the suppliers are fraudsters, that's still a lot of people that can get ripped off.
They are trying to do the right thing. Recognizing their responsibility (yet still acting as a platform), Alibaba has put in place procedures on the front end and back end to help ensure that people don't get ripped off. On the front end, they have their Inspection Service to help verify that suppliers are legitimate, and on the back end, the Alibaba Fair Play Fund, that helps victims recover money when it has been proven that they have been defrauded.

A couple of points:

Pre-purchase: It's hard to weed through the Inspection Service page because it reads like a legal document, but here are some good links to the Alibaba.com Transaction Services Agreement and the Escrow Services Agreement. They are long, boring legal documents but are worth reading if you are curious about how you may be impacted in the buyer-seller process.What's easier to understand is what Linda Kozlowski, Alibaba.com's director of global marketing and customer experience said September 2011, : "...Next month, Alibaba.com employees will begin visiting some 112,000 of the e-commerce platform's paid China Gold Suppliers in person to physically confirm that the factories exist and conform with members' registration documents, a process that is expected to take up to a year, Kozlowski said. A third-party inspection service will also conduct random, unannounced checks on an ongoing basis to make sure the manufacturers remain compliant."
Post purchase. It's important to remember that like many successful companies, Alibaba presents vendors and suppliers with due process. On their Alibaba Fair Play Fund page, it reads: "To be eligible for the Fair Play Fund payout, claimants must have presented a substantiated complaint before the Gold Supplier was removed from the site. Please note that Gold Suppliers are only removed from Alibaba.com after a complaint has been investigated and substantiated."

First, remember that it is a platform. Second, do your homework. Third, know your rights and responsibilities under the Alibaba Fair Play Fund.

Alibaba Plays Fairly: Checking Out Potential trade Partners

noreply@blogger.com (About Alibaba Fair Play) — Sun, 26 Feb 2012 14:58:00 +0000

If you are looking to do business with - investor your hard-earned money with - partner on the other side of the world, you need to check this person out. If one buyer is defrauded and has to use the Alibaba.com Fair Play Fund, it's one too many.

Here are some good tips for verifying potential partners from Alibaba.com:

How best to verify new trade partners is something many businesses involved in e-commerce ask us every day. Although it is safe to trade with most businesses online, it is important to avoid the “Low Price” or “Big Purchase Order” traps. Below are some useful tips to help you verify potential trade partners:

Ask potential trade partners to provide you with as much company information as possible, such as company profile, business license, export/import documents, contact details, etc. Beware of companies that have incomplete details or who only use mobile phones to contact you. If a potential trade partner’s business is registered in Country A, but their contact details are for Country B, it is important to ask them serious questions.
Use a search engine such as Google to verify their company information and contact details. Beware of businesses with a lot of complaints recorded against them. You should also use your potential trade partner’s local government website to verify their registration number and other contact details.
Ask your bank to verify your potential trade partner’s bank. If your potential trade partner’s bank is not trustworthy, ask them to change it.
Ask for a credit report company from your potential trade partner. It is important to confirm that they are not in financial trouble and have never conducted any fraudulent activities. When conducting credit verification, it is essential to first verify their identity to prevent fraud caused by identity theft.
Ask your potential trade partner’s local embassy or Chamber of Commerce to help verify their company.
Post questions on foreign trade forums, such as Alibaba.com Safe Trading Forums, to ask for help from forum members. They may be able to help you verify your potential trade partners.
If you are a buyer, you are highly advised to travel to your potential trade partner’s place of business to inspect their factory, production, products, etc. If travel is not possible, it is worth hiring a third-party Inspection Company to check the factory and goods. 8. Take a lot of time to discuss orders with your potential trade partner about the product, payment, shipping, etc. If they are unclear about their company and products, or the deal sounds too good to be true, you are strongly advised to stop all business with them.

Repost: Alibaba.com Member Advice on How to Avoid Fraud

noreply@blogger.com (About Alibaba Fair Play) — Wed, 22 Feb 2012 13:35:00 +0000

This comes directly from the Alibaba.com Trade Forums: "How to check your Supplier before ordering." I don't think that it comes from the company, rather from a member because of the detailed advice and links provided. It's good advice on how to verify suppliers, avoid fraud and scams, and NOT have to resort to the Alibaba Fair Play Fund. The English is not perfect, but no matter, it is good solid advice from someone who has clearly been there. Happy reading: =================================================

How do I get help to check a particular Supplier?

First, DO NOT BE LAZY ... please read the Tips further below and also look at this link to see what members say about being lazy ... http://resources.alibaba.com/topic/18839/STOP_BEING_LAZY_handle_your_own_due_diligence.htm

Second, DO NOT OPEN A NEW TOPIC. Post your query in this Topic after you read the below Tips.

Third, STATE WHAT CHECKS YOU HAVE DONE. Merely asking if Seller XYZ is okay is an invitation to howls of protest. Tell us what you yourself have done to check out your seller and then ask your question. Members are very generous if you are seen to be trying hard. Otherwise, your post will be deleted or you will receive little response if you show you are lazy.

Tips to Check out Chinese suppliers by yourself ...

The focus of this topic is to empower you to do an informal check of your potential supplier in China. The stated steps are by no means a "guarantee" that your supplier will be a legitimate business. However, by following the steps here you should be able to eliminate the majority of common techniques used for fraudulent activity. Education and information are your best protection against fraud.

This topic is not a substitute for physical inspection of the manufacturing site. The purpose is to provide buyers with a "first line of defense" against fraud and/or shoddy goods. If you've posted a buying lead you no doubt have received many replies to your inquiry. This discussion is about knowing your potential supplier before you get too deep into negotiations.

100's of frustrated potential buyers can be seen on this link ...

http://resources.alibaba.com/topic/122/How_to_verify_if_a_seller_is_serious_any_tips_.htm?va=0

Carefully do your Due Diligence before you get into serius negotiations in order to avoid frustrations and/or fraud and;or shoody goods.

Your initial sales enquiry ...

Every case is different, but broadly say little in your first communication. You don't want to arm potential scammers with too much information to play you like a hooked fish on a line. Stay in control from the very outset with something like this:

Dear Sales Manager,

We are interested in your Widgets, product numbers X, Y and Z plus more information about your good company.

In the first instance we may look at a small trial shipment to test our home market.

Kindly provide both FOB MOQ price and price for larger volumes at your earliest convenience.

Concerning your good company, please indicate if References or copy of any recent Factory Audit, or similar, can be provided if we proceed to serious discussions.

Yours sincerely,

Accordingly from the outset, you reserve enough control to make firm due diligence requests, if necessary, as talks progress.

Alibaba company profile ...

Look at their profile on Alibaba. Remember, many scammers simply sign on as sellers with false profiles. You or I could do the the same in 10 minutes. Ask yourself, does this make sense?

Are a manufacturer's products in the same category? (ie does a shoe company sell electronics or vice versa?)
Is there a separate phone number for the fax and land line?
Is there a separate website listed off Alibaba that you can check?
How long have they been a member of Alibaba?
Are they a Gold Supplier, Trust Pass or Free Member?
Look at the Company profile. Does the paragraph look generic or copied? You can highlight all or part of the paragraph and place it in the google engine around quotes ("xx"). This allows you to search the web to see if it is original or copied?
Search the forum to check this supplier. Are there any negative postings? Use both the contact name and the company name.

The initial profile check should give you a general overview of your potential supplier. Decide now if it's appropriate to continue verifying. If the answer is "yes" then it's time to dig a little deeper. Website & Domain Verification ... Do a google or yahoo search. Look for any information that looks out of place. First, try the company name and the word "scam" or "fraud" in quotations. For example "shanghai shoes scam". Then search the name alone but always in quotes like "shanghai shoes". Websites in China are not unlike the ones in the Western part of the world. Don't be distracted by grammar or non-English. Carefully check the website "about us" section and then cross match that information with all other. Check their domain information using the following links. Pay close attention to the registration date, Registrar name, phone number, and contact info including email. www.whois.org www.dnsstuff.com Verify the phone listing ... Remember a free member Alibaba profile stating the supplier is in China is meaningless until you verify it. The person behind it might reside in any country merely using China as a shield. Check country and geographic codes. A fraudulent western person could even raise a Chinese supplier profile (and use a Chinese based party to collect T/Ts). Some western scammers use a forwarding number or a VOIP number to disguise their location. Numbers beginning with the prefix +4470 or +4487 are forwarding numbers that are rarely used by legitimate companies and not used by Chinese either. Some numbers can be checked here .... http://www.numberingplans.com//?page=analysis&sub=phonenr Once again the goal should be to find a "geographic number" which means they have a physical land line. Eventually you want to call the number and speak with your contact and at least one other employee of the company. Receiving product listing and price quotes ... After you post your buying lead you will undoubtedly receive mass information from many companies. Look at the detail for the products and again ask yourself some questions.

Are the prices overly high or low?
Do they only accept Western Union or 100% TT?
Is there an appropriate amount of contact information?
Are they overly pushy for payment?
Is there a sensation of being "rushed"?
Are the stated lead times reasonable?
Is the MOQ too high or too low for the particular circumstance?

Pick up your phone ... Finally, pick up your phone and ring China. Dial the supplier's number/s. Sure, Chinese language will answer, but just keep repeating the word "English" ... they will find somebody who can talk in broken English. These days it costs next to nothing to call China from most Western countries. Buy an applicable $10 phone card from a local shop for use on your land line ... it will give heaps of talking time. And, dial their fax number too ... did it give a fax ring tone? Remember you are doing Due Diligence ... avoiding the loss of precious money. Your TM is a surveillance weapon ... Add your potential supplier to your "Contacts" list. You know how it "flashes" when a contact comes on or goes off line:

Work out Chinese business days / hours against your local time.
Is the Chinese party "online" mostly during Chinese business hours, as should be the case?
Or, does the party spend too much time online during USA or UK business hours?
Does the Chinese party work the TM too much on Chinese Sundays?

Any Questions and/or Further Tips? Please post in this Topic and do not open a new Topic for enquiries about a particular Supplier company.

Whoa! Alibaba.com is Looking for Forum Monitors to Help Spot Fraud!

noreply@blogger.com (About Alibaba Fair Play) — Tue, 21 Feb 2012 12:56:00 +0000

Now they are looking for additional forum monitors. I think it's cool, because few people know the forums better than the people who are on them constantly. Check this out:

2012 is coming, wish everybody in our forums Happy New Year!

Due to the rapid growth of our forums, we're looking for more moderators. We want to hear from members who have the expertise and time to ensure posting activities meet world-class business standards.
The valid date is from 2012 to 2013) If you have such experience is better:

More than 1 year business experience

Familiar with our forums and your answers to other members is more than 6 and the quality is high

Happy to help forum members out of their problems

If you're interested and qualified, please tell us a little bit about yourself and what sense of oversight you can bring to our discussion forums by clicking reply below. Suitable applicants will be contacted directly by Administrator (Carol). Alibaba.com Forum.

This is a really interesting development, and one that could help keep buyers and sellers informed as well as avoid fraud, scams and the Alibaba Fair Play Fund.

Intellectual Property and Alibaba.com

noreply@blogger.com (About Alibaba Fair Play) — Thu, 12 Jan 2012 13:16:00 +0000

I found some cool information on the Alizila site, the blog that covers all things Alibaba. Intellectual property is a huge issue between the United States and China right now and the post addresses the rights of small business owners who think that their products have been infringed upon. Not only is the post interesting, but there is a cool slide show courtesy of Alibaba Australia. Have a look:

Small business owners usually can't afford to keep a high-powered law firm on retainer, but when their intellectual property has been hijacked, there are steps they can take to protect themselves, according to Alibaba.com. The B2B website, a global online marketplace for tens of thousands buyers and sellers, finds itself occasionally mediating cases where a small, creative company selling online discovers photos of its designs have been appropriated by another vendor.

Like all major online marketplaces, Alibaba.com has an established process by which content owners can assert their intellectual property (IP) rights. AliProtect is the platform’s IP protection system. It allows an individual rights owner to file a claim for an alleged IP infringement on the site. As soon as the claim is verified, any illegitimate listings are immediately pulled down. All visitors to the site can claim infringement, regardless of registration, via AliProtect. (For more information on Alibaba.com’s reporting policies and procedures, click here:

http://legal.alibaba.com/complaintRule_en_US.html) The platform also provides an email to address these concerns (pic-copy@service.alibaba.com).

Below are tips on how users can protect their photos on the net, provided by Alibaba.com in Australia.

Image Protection Tips

View more presentations from Alibaba.com

Fast Facts on the Alibaba Fair Play Fund

noreply@blogger.com (About Alibaba Fair Play) — Tue, 10 Jan 2012 14:22:00 +0000

Updated information from Alibaba.com on the Alibaba Fair Play Fund. God stuff to know if you find yourself in a jam in which a dispute cannot be resolved.

FACTS:
Established in 2009, the Fair Play Fund initially covered fraud disputes between buyers and China-based Gold Suppliers. As of January 2011, the Fair Play Fund also covers claims filed against Global Gold Suppliers. Guidelines for Fair Play Fund: 1. To be eligible for the Fair Play Fund payout, claimants must have presented a substantiated complaint before the Gold Supplier was removed from the site. Please note that Gold Suppliers are only removed from Alibaba.com after a complaint has been investigated and substantiated. 2. Claimants with losses of US $1,400 or less are eligible for 70 percent of amount lost. Claimants with losses greater than US $1,400 will receive a maximum of US$1,000. Two-thirds of complainants lost less than US $1,000 to fraud. From January 2009 to March 2010, 715 complainants reported being defrauded by China Gold Suppliers and substantiated their claims, becoming the first group to benefit from the Fair Play Fund. After completing the application process, the complainants received a total of about US $400, 000 in reimbursements. As of December 2010, more than 2,000 complainants have benefitted from the Fair Play Fund and have received compensation totaling more than US $1,500,000. Like all other e-commerce B2B platforms, Alibaba.com acts as a marketplace and bears no financial or legal responsibility for transactions conducted between companies that connect outside our sourcing platform, but we do provide buyers and suppliers with assistance in compiling documentation and other evidence to resolve business differences, and when necessary, to pursue legal claims. Notwithstanding the new Fair Play Fund program, buyers still retain the right to pursue legal action against suppliers who don’t perform as expected and our assistance in those rare instances will continue to be available.

Avoiding Scams on Alibaba.com Through Fake Gold Suppliers

noreply@blogger.com (About Alibaba Fair Play) — Mon, 09 Jan 2012 12:41:00 +0000

I took a little break for the holidays. Hope you all either used Alibaba safely or spent some some learning about how to avoid scams and fraud on the world's largest e-commerce platform. I'm picking up where I left off. Below, I've provided some information from Alibaba.com that relates to spotting a fake verified gold supplier. Again, with millions of users on a platform, if even .001 percent of the users are frauds, you may end up being scammed - and hopefully not have to resort to the Alibaba Fair Play Fund. Anyway, here are some good tips on how to spot fake Alibaba.com suppliers.

Fake Verified Gold Supplier

Case Study:

I received an email from a supplier called Mike from a company named Happy Electronics Co. He told me he could supply PS3 at a low price. I searched on Alibaba.com and found he was a Gold Supplier, so I was confident about this transaction. I placed an order for 10 pieces of PS3.

After payment, I lost contact with him and didn’t receive any goods. I reported Happy Electronics Co. to the Alibaba.com Service Team. After an investigation, they told me that the person I contacted is not really an employee of Happy Electronics Co.; in fact, he is a scammer posing as a representative of the company. Below is the email I received:

Case Analysis:This is a case of Gold Supplier identity theft. Scammers will pretend to be representatives of legitimate companies with the intent of cheating unsuspecting buyers. Please be aware that you should always:

Ask the suppliers to provide you with their company website on Alibaba.com. You can also use the company name that they provide to do a simple search online. Once found, compare the contact info that they provide with the information published online. If it’s different, please be very cautious. You can also use TradeManager to contact companies listed on Alibaba.com. Ask them to verify that the person you are in contact with is actually their representative.
Be extra cautious if the price quoted is extremely low (50% lower or more than the market price). For instance, the quotation in the case above seems very good: one PS3 costs only US$188 per piece and you get an extra one free if you buy 5 pieces. This deal sounds too good to be true because it is.
Use Alipay as your preferred payment method when you want to buy from Chinese Gold Suppliers. Alipay is safe because your money will only be released to the supplier after you confirm satisfactory delivery. If disputes arise, Alibaba.com will help mediate. Learn more about Alipay. Western Union and other direct payment methods are risky, especially for your first transaction with a supplier.
Email the Alibaba.com Service Team for help verifying suppliers found on Alibaba.com.

FAQ on Alibaba Fair Play Fund

noreply@blogger.com (About Alibaba Fair Play) — Fri, 16 Dec 2011 13:03:00 +0000

I found (finally) an FAQ on the Alibaba Fair Play Fund - it's in the Safety and Security Center. Here it is:

As part of our continuing mission to help businesses around the world become more profitable and entrepreneurs more successful by harnessing the power of e-commerce, Alibaba.com, a global e-commerce pioneer and the world’s leading business-to-business e-commerce company, is taking a critically important step to foster even greater confidence in our platform. During the last year, we saw tremendous growth in small business buyer usage on the international site. In order to further educate users on safe trading, while also helping offset a portion of losses suffered by a handful of small business buyers defrauded by suppliers who paid to list on the Alibaba.com platform, Alibaba.com has created the Fair Play Fund.

While the vast majority of transactions conducted between parties who meet on Alibaba.com are completed successfully, there unfortunately remains a very small minority of people who try to take advantage of small business buyers as they would in the off-line business world. The Alibaba.com international site has more than 11 million registered users, and, thanks in part to our efforts to foster an environment of safe trading, less than 0.05 percent of them have reported potentially fraudulent activity. As we continue to attract new small businesses to Alibaba.com, we are redoubling our efforts to maintain a trustworthy environment and to allow buyers and suppliers to engage in international trade confidently.

The development of a trustworthy platform is of great importance to Alibaba.com and has been our mission from the beginning. Over the years, we have taken a number of proactive steps to ensure fair trade between our users, including the third-party authentication and verification of paid members and providing guides to aid safe and fair trading.

We also continue to assist buyers and suppliers in attempting to settle business disputes. In cases where a complaint of fraud against a supplier is substantiated, that supplier is immediately removed and banned from our platform. If the supplier was a paying member, the supplier forfeits their subscription fee. Forfeited fees are the source of our new Fair Play Fund, which aims to help buyers recover some of their financial losses given that they can demonstrate they were defrauded by a supplier using our platform.

FACTS:
Established in 2009, the Fair Play Fund initially covered fraud disputes between buyers and China-based Gold Suppliers. As of January 2011, the Fair Play Fund also covers claims filed against Global Gold Suppliers.

Guidelines for Fair Play Fund:

1. To be eligible for the Fair Play Fund payout, claimants must have presented a substantiated complaint before the Gold Supplier was removed from the site. Please note that Gold Suppliers are only removed from Alibaba.com after a complaint has been investigated and substantiated."

2. Claimants with losses of US $1,400 or less are eligible for 70 percent of amount lost. Claimants with losses greater than US $1,400 will receive a maximum of US$1,000. Two-thirds of complainants lost less than US $1,000 to fraud.

From January 2009 to March 2010, 715 complainants reported being defrauded by China Gold Suppliers and substantiated their claims, becoming the first group to benefit from the Fair Play Fund. After completing the application process, the complainants received a total of about US $400, 000 in reimbursements.

As of December 2010, more than 2,000 complainants have benefitted from the Fair Play Fund and have received compensation totaling more than US $1,500,000.

Like all other e-commerce B2B platforms, Alibaba.com acts as a marketplace and bears no financial or legal responsibility for transactions conducted between companies that connect outside our sourcing platform, but we do provide buyers and suppliers with assistance in compiling documentation and other evidence to resolve business differences, and when necessary, to pursue legal claims. Notwithstanding the new Fair Play Fund program, buyers still retain the right to pursue legal action against suppliers who don’t perform as expected and our assistance in those rare instances will continue to be available.

Tools that Alibaba.com Provides to Help Avoid Fraud

noreply@blogger.com (About Alibaba Fair Play) — Wed, 14 Dec 2011 13:31:00 +0000

Alibaba.com has various ways to help ensure that you can avoid scams and fraud. Let's face it. When you have a site with millions of suppliers, if you have one tenth of one percent of bad actors, that can still produce a significant amount of harmed buyers. And Alibaba.com is A PLATFORM for people to buy and sell. They don't do the buying and selling. It's important to do the following to ensure that you have a good (and hopefully profitable) experience using Alibaba.com. This includes:

Doing your research
Learning the ins and outs of using the site
Conducting your transaction
If you think you have been ripped off, going through the appeals process, and
As a last resort, using the Alibaba Fair Play Fund.

So start here. It's a all about the Alibaba.com Inspection Service. It lists inspector type, inspector background as well as (and this may be the most important information of all), Inspection History and Reviews.

Have a read: an ounce of inspection prevention is worth a pound of Alibaba Fair Play Fund cure.

Good Alternative to the Fair Play Fund: Alibaba Rates Suppliers

noreply@blogger.com (About Alibaba Fair Play) — Tue, 13 Dec 2011 13:14:00 +0000

As I have mentioned before, Alibaba.com has a great site (Alizila) that presents news and information, about the company - in a pretty impartial manner. That's unusual for a company to have a site that offers the unvarnished truth.

I found a good article this morning "Alibaba.com Adds Ratings for Inspectors." This is valuable information because, as I have said in this space before, if you do your homework on the front end, so can find reliable, quality suppliers. You can avoid scams and fraud. And you can then avoid the path of last resort, the Alibaba Fair Play Fund. And the Fair Play Fund is not a bad thing - it helps compensate users who have lost money - but avoiding it is critical.

So have a read:

Ensuring that products shipped from Chinese suppliers are of good quality and as advertised is an important consideration for businesses using Alibaba.com. To allow international buyers to hire on-the-ground shipping inspectors in China easily over the Internet, the B2B website four months ago added 38 Chinese inspection services to the platform. Through the site's Inspection Service, buyers can choose among these independent contractors and, at relatively low cost, hire one to physically visit suppliers all over China to confirm they are getting what they paid for before their orders are shipped overseas.

But who watches the watchers?

How can buyers be confident that the inspectors, who they are hiring sight unseen, are competent and trustworthy? That issue has been addressed with the addition of a customer feedback and rating system, which is live on the website. From now on buyers who have used the services of an inspector can leave behind a review and rank their inspector on a scale of one to five stars. Those ratings and reviews are displayed on the site so others can decide which services are reliable. Buyers who feel their inspection was conducted improperly have up to three months to dispute a transaction, and can receive up to 20 times the cost of the service if they win their case. Payments can also be protected by escrow. The feedback system was just launched so there aren't many reviews on the site yet, but to take a look at a typical feedback page for one of the top inspection services, click here.

Fraud and Scam Prevention on Alibaba.com

noreply@blogger.com (About Alibaba Fair Play) — Thu, 01 Dec 2011 15:00:00 +0000

Just doing some basic research can help you avoid fraud. Would you buy a watch from a guy on the street? A car without doing some due diligence? So that's why it's important to check out who is legit and who is not by periodically reviewing the Alibaba.com Banned Paid Member List.

An ounce of research prevention is worth a pound of Alibaba Fair Play Fund cure. Trust me.

Here's the latest list of the Banned Paid Members on Alibaba.com (October, 2011) - from Alibaba.com Safety and Security Center:

On October, below companies have been removed from Alibaba.com due to suspected fraudulent or other illegal activities reported by our members. Alibaba is always contributing to a trustworthy and safe business platform. Due to our constant efforts and the help of our members, suspected fraudulent or other illegal activities are closely monitored and dealt with.

However, we advise you to Online Security Department of Alibaba.com immediately if you encounter any suspected fraudulent activity on Alibaba.com. Our service team will follow up accordingly in order to avoid repeat offences.

Company Name	Registered Country/Region	Membership Type
ANHUI HUACHENG HEALTH EQUIPMENT CO LTD	China (Mainland)	Gold Supplier
BRADIMIRA SILV SRL	Romania	Gold Supplier
Changchun Yuan Chang Economic And Trade Co., Ltd.	China (Mainland)	Gold Supplier
CND Technology Co., Ltd.	China (Mainland)	Gold Supplier
Dongguan Ganzda Metals Manufacturing Co., Ltd.	China (Mainland)	Gold Supplier
Fujian Yuansheng Foods Industry Co., Ltd.	China (Mainland)	Gold Supplier
Hangzhou Holypharm Biotech Co., Ltd.	China (Mainland)	Gold Supplier
K-Top International Ltd.	Hongkong	Gold Supplier
PRINTMAX IMAGE CO LTD	China (Mainland)	Gold Supplier
QFMEAT OU	Estonia	Gold Supplier
Shanghai Jinnuo Superbike Parts Company Limited	China (Mainland)	Gold Supplier
Shenzhen B.C.T Computer Co., Ltd.	China (Mainland)	Gold Supplier
SHENZHEN ELINK TECHNOLOGY CO LTD	China (Mainland)	Gold Supplier
Shijiazhuang Jinghua Magnesium Co., Ltd.	China (Mainland)	Gold Supplier
Taizhou Luqiao Xinnuo Plastic Firm	China (Mainland)	Gold Supplier
Wudi Long Teng Co., Ltd.	China (Mainland)	Gold Supplier
Xiamen Zhenglan Glass Co., Ltd.	China (Mainland)	Gold Supplier
Xian Avatar International Trade Co., Ltd.	China (Mainland)	Gold Supplier
Zhejiang Fuwo Electric Appliance Co., Ltd.	China (Mainland)	Gold Supplier

Banned Paid Members

Reputation Matters When Buying from Online Chinese Merchants

noreply@blogger.com (About Alibaba Fair Play) — Wed, 30 Nov 2011 18:25:00 +0000

Found this interesting article on Alizila today, laying out survey data on people's level of comfort in buying from China-based suppliers.

Interesting read.

More than 85 percent of Chinese consumers cite price as the main reason they shop online but a merchant's reputation is the most important factor consumers consider when they choose a website to buy from, according to a survey by U.S. digital marketing company Acquity Group.

The survey, which provided a glimpse of Chinese e-shoppers attitudes, found 45 percent bought something online at least weekly, and 44 percent did so between once and three times a month. Acquity Group polled more than 1,000 consumers in 150 cities. (Download the survey results here.)

Consumers continue to depend heavily on services run by Alibaba Group, China's largest e-commerce company, when shopping on the Web. More than 40 percent of online shoppers said they discovered e-tailers through Alibaba's Taobao, the country's largest B2C and C2C website.

More about buying attitudes in China
That compared with 27.5 percent who said they discovered retailers through web advertising; 18 percent who relied upon recommendations from friends; and 7.8 percent who used search giant Baidu to find merchants.

Nearly 70 percent cited online payment service Alipay, also owned by Alibaba Group, as their preferred e-payment method.

The paradox of the Chinese consumer
Nearly two out of three consumers are concerned about customer service and getting stuck with fake goods when shopping on the web, which helps explain why merchant reputation is important to online shoppers. Those surveyed also said product quality and price were important determinants in where they shop online.

Alibaba.com Safe Trading Guide - Don't Get to the Fair Play Fund Phase!

noreply@blogger.com (About Alibaba Fair Play) — Tue, 22 Nov 2011 14:49:00 +0000

Good advice from Alibaba.com on how to trade safely. Again an ounce of prevention is worth a pound of cure when:

Doing your homework before trading;
Making safe trades;
When necessary, use the Alibaba dispute process; and
Using the Alibaba Fair Play Fund.

Here's a "how to" from the Alibaba.com Safe Trading Guide:

	Verifying a Company's Registration
	It is important to verify the company registration of the buyer/supplier that you want to trade with. This is to ensure that they are real and legitimate in the country/region that they operate in. Learn more
	Verifying IP Addresses
	Email IP addresses can be verified to make sure that the buyer/supplier is really from the country/region that they claimed to be from. Learn more
	Verifying Phone Numbers
	You should always check that the phone number of the buyer/supplier you intend to trade with is real. Learn more To learn how to make international phone calls, click here
	Verifying Zip Codes
	Check your buyer/supplier's postal/zip codes to make sure the address provided is correct. Learn more

Checking Out Alibaba Sellers: Their A+ Program

noreply@blogger.com (About Alibaba Fair Play) — Thu, 17 Nov 2011 16:08:00 +0000

As I have mentioned before, as I see it, Alibaba takes user concerns, complaints and fraud seriously. To do otherwise would be a disastrous business model.

I troll the Alizila site from time to time - it's a site about Alibaba and by Alibaba but that does not sugarcoat any of the news. Seriously.

Today, I found an interesting piece. It's entitled "AliExpress Rolls out A+ Seller Plan." It details how the company is getting tougher on quality inspection. Better inspections mean less fraud. Less fraud means less use of the Alibaba Fair Play Fund.

Have a read:

Chinese exporters selling products overseas on Alibaba.com's AliExpress platform can boost their visibility through a new program that spotlights vendors who meet tough product quality and service standards.

AliExpress is recruiting merchants to join its A+ Seller Plan, whose members will be able to brand their online stores with special icons identifying them to buyers as premium vendors. Products offered by A+ members will also get priority search ranking.

To earn the A+ badge, vendors must have positive ratings from buyers and a low number of disputes. A+ sellers also must meet service standards set by AliExpress, such as guaranteed fast delivery (shipment within 48 hours of payment for merchandise not delivered by boat) and customer-friendly return policies. If products do not match their descriptions on the website, buyers can return purchases within 15 days and sellers must pay all shipping costs.
The A+ program is Alibaba.com's latest initiative to boost the trustworthiness and professionalism of merchants on its websites. Chinese e-commerce companies have been plagued by high numbers of scammers and counterfeiters who circumvent standard verification checks to cheat buyers. "The purpose of the A+ Seller Plan is to offer higher quality products and suppliers in order to speed up the development of AliExpress," said an official with the company.

AliExpress is a transaction-based platform that allows buyers to purchase goods in smaller quantities than are typically available through wholesalers on Alibaba.com. AliExpress is ranked No.1 by Alexa.com among international B2B websites in terms of traffic.
To encourage more vendors to join the A+ plan, AliExpress is charging qualifying members a 3% transaction fee, lower than the rate paid by standard vendors, the company said.

Use Your Research Skills, Not the Alibaba Fair Play Fund

noreply@blogger.com (About Alibaba Fair Play) — Tue, 15 Nov 2011 13:06:00 +0000

I found this on the Alibaba U.K. International Trade Guide. It's interesting in that it lays out of the steps for getting the quality that you expect, being prepared, avoiding fraud and ensuring that you don't end up having to use the Alibaba Fair Play Fund. And once again, it's all about doing your homework. Have a read:

For business owners, there are plenty of compelling reasons to source products from overseas. Not only are items generally provided at a lower cost, but in many cases, an international supplier may be the only option available.

While the positive aspects of working in the international market can be very attractive, it's crucial to remember that there are a variety of problems that can be encountered.

But for smart buyers, careful planning and taking the time to do careful research can help you avoid the majority of difficulties entirely. In most cases, simply by confronting these issues early on, you will prevent them from becoming permanent barriers to success.

3 ways to ensure you're getting the quality you expect

As a retailer, the quality of the products you provide to your customers is of utmost importance. It doesn't matter if what you're selling costs 拢500 or 50p: if the product does not match client expectations, you will struggle to build a lucrative business.

Therefore, if you're going to source your inventory from a global wholesaler, it's essential that you take steps to ensure the items you order are exactly what you and your customers will be expecting.

1. Get specific information

Once you find a wholesaler that interests you, begin asking for descriptive information about the products you want to source. This can give you a very good idea of what the company is offering and if it's the sort of product you will want to sell.

For example, you might want to find out what the product is made from, how it is assembled, what the dimensions are, what materials are used to decorate it and how it is packaged, as well as its weight.

The questions you ask will depend on the particular item that you are ordering, but you should endeavour to be as thorough as possible, helping to ensure you don't get any unpleasant surprises when the first shipment arrives.

If it's appropriate, you can also ask for samples to be sent. Having the physical item in front of you can give you much more confidence in the quality of the product that you're going to be selling.

2. Check out the company's supply chain

Finding out where a company sources its raw materials from can also be beneficial, as it can help you ensure that the products are exactly what you're looking for.

Depending on the products that you want to sell, it may be a good idea to do a bit of research into the supply chain to make sure that the materials they provide are consistent and fit for purpose.

You should also confirm that the company will actually be the one making your product. Sometimes, one manufacturer will subcontract orders to another company. This could be due to a high workload, or the difficulty of the project. Whatever the case, this is something you should try to avoid, as it could result in unexpected delays, an inconsistent product or other similar difficulties.

3. Check their accreditations

Currently, there are a number of internationally recognised accreditations that companies can get. These have been designed to give you peace of mind that the organisation you choose to work with is trustworthy and follows a set code of conduct, both in house and when working with customers.

ISO 9001 is one such recognition. This is an indicator of good quality management and those who earn this accreditation have shown that they provide consistent products that meet customer expectations.

In some cases, it might also be appropriate to seek out companies that have achieved Fair Trade certification, which means that they offer reasonable payment to producers and workers, as well as considering issues such as sustainability and community development.

Consider the language and cultural differences

When dealing with people from other countries, our first concern is probably the language barrier. And it's true that this can lead to confusion or other such problems.

If you don't speak the local language, don't assume that somebody at the company will speak English - although it's likely they will. Always look into the language situation early on and keep this in mind when making a final decision.

Additionally, it's important to remember that business practices around the world vary significantly and it can sometimes cause difficulties. Before starting communications with a company, be sure to do a bit of research to find out a bit more about their culture, and try to be both patient and flexible when you do encounter differences.

Establishing trust

While the majority of companies that you come across will be legitimate firms working hard to earn your business, it's an unfortunate fact that there are also people out there trying to scam you. Therefore, it's important to do what you can to ensure that the organisation you are dealing with is genuine before you send them any money.

There are a number of different ways you can approach this matter, and it's recommended that you undertake various checks to make sure the company is legitimate. Reverse-telephone look-ups can be an advisable way to start and it is good practice to avoid companies that only use mobile numbers or free email addresses as contact information, due to their disposable nature.

It might useful to ask the company for bank information or business certificates, or perhaps request the details of some of their other clients to get recommendations. If you're dealing with an overseas firm, you may also want to get in touch with your embassy in that country: they should have access to a list of registered businesses.

And don't forget to trust your own judgement and instinct. If something doesn't seem right about the company, do more research, or find another firm that you do trust.

Find an overseas supplier with help from Alibaba.com

Here at Alibaba.com, we have been providing an international sourcing solution for over ten years. Whether you are a seller on eBay or Amazon, an owner of a small enterprise or are a buyer for a high-street chain our site offers the perfect resource to find new products.

Our database includes more than 53 million registered users from throughout the UK and Europe, as well as much further afield in countries like the US, China and Japan. They range from wholesale suppliers, manufacturers to importers and exporters, as well as B2B traders, and they operate in just about every sector you can think of - including fashion, automotive, consumer electrics, food and chemicals.

To begin finding overseas suppliers with help from Alibaba.com, simply search or browse our listings. If you're thinking of starting a business and don't know what to sell, our site can also provide some great inspiration. Once you find a product or supplier that matches your requirements, you can get in touch with them to request further information.

If you'd like to get even more from Alibaba.com, why not register today? It's free and you'll get complete access to our entire database, as well as a variety of useful tools. And be sure to find us on Facebook, where we'll keep you up to date with the latest news, and more hints and tips for working at an international level.