Avoiding Fraud on Alibaba.com: Alibaba Onsite Check

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

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

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.