Trade Assurance: Alibaba’s Answer to Cross Border Trade Concerns

May 20, 2024 by
Trade Assurance: Alibaba’s Answer to Cross Border Trade Concerns

Online wholesale trade giant Alibaba.com launched Trade Assurance on Tuesday, a free service that is designed to give businesses peace of mind when trading across borders.

The service uses data analytics and trading history to provide global buyers with a set of features and protections that will ensure a supplier honors aspects of their contract.

“Building trust has always been a hurdle to overcome in international trade, and Trade Assurance is a data-based way to help buyer and supplier build trust,” said the Alibaba group Senior Vice President Wu Min Zhi.

Online sales are forecast to hit $25 trillion by 2020. Some SMEs are reluctant to trade across borders for fear of substandard product quality and payment security. This is where Trade Assurance comes in.

Currently operating with select suppliers in China, Alibaba.com will refund up to 100 percent of the Trade Assurance amount that was agreed on in the contract, if the product is not up to the promised standards or if it is delivered late.

The service is planned to roll out globally over the next few years, and though it only covers telegraphic transfer payments for now, the company promises to extend Trade Assurance to other payment options in the future.

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