Wednesday, November 30, 2011

Reputation Matters When Buying from Online Chinese Merchants

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.
 

Tuesday, November 22, 2011

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

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

  1. Doing your homework before trading;
  2. Making safe trades;
  3. When necessary, use the Alibaba dispute process; and
  4. Using the Alibaba Fair Play Fund.
Here's a "how to" from the Alibaba.com Safe Trading Guide:


Verify Companies Online
Verifying a Company's Registration 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 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 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 Verifying Zip Codes
Check your buyer/supplier's postal/zip codes to make sure the address provided is correct. Learn more

Thursday, November 17, 2011

Checking Out Alibaba Sellers: Their A+ Program

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.

Tuesday, November 15, 2011

Use Your Research Skills, Not the Alibaba Fair Play Fund

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.

Monday, November 14, 2011

Find black listed exporters, audited suppliers in Alibaba

Information on how to find blacklisted and
Gold Suppliers on Alibaba.com
I'm always looking for new nuggets of information about the Alibaba Fair Play Fund as well as tips for how to avoid scams and fraud on Alibaba.com, so I came across this blog post on Tragazine entitled "Find black listed exporters, audited suppliers in Alibaba."

The article lists:

In parallel to black listing its gold supplier members who are believed to be engaged in fraudulent cases or selling faked or counterfeit products regularly, Alibaba.com (HKSE1688) also updated her list of audited suppliers to international buyers as part of reference in selecting qualified suppliers.
Audited suppliers are required to be tested, inspected and certified by independent organizations i.e. Bureau Veritas and Intertek. They will provide buyers with audited reports and key facts relating to audited suppliers. Those audit reports are additional tool to let buyers compare suppliers.

It's worth a read.

Tuesday, November 8, 2011

Alibaba Fair Play Fund Works!

Not everyone (in fact, I suspect the majority of Alibaba.com users) are not English speakers, but I found something of interest today. It is located in the Alibaba Report and Verify Fraud Forums and it is testimonial from someone who used the Fair Play Fund.

When you read things online about large companies, I am reminded of the phrase that "if it bleeds, it leads," meaning that it's whole lot easier to find negative information than positive information. So again, the English is not perfect, but here is a commentary from an Alibaba user who sought and got Fair Play Fund help from Alibaba and had a satifactory outcome:
Mr. Carl from The Alibaba.com Fair Play Fund Policy has done a really a great job and help to me. I wish to tell that 2 months ago I was scammed/very badly cheated by a china company from Chongqing city. I sent 300 US$ advance payment by a bank T/T to buy laptops but after receipt money by the supplier there is no response from the them and no goods I did receive. I did complaint to alibaba.com and sent all my evidences, which alibaba.com found true and applied my case for Fair Play fund Policy. And I really appreciate that they sent me my money back within a month. great ! Once again I really thankful and appreciate to Mr. Carl from Alibaba.com who helped me in this matter. I may write here that this is good step by alibaba.com to gain confidence and trust of buyers in their site. I definitely trust in this site now and would like to say for buyers to be careful in sending advance payments to suppliers. (Antony)