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.

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.
 

Trade Dispute Procedures for the Alibaba.com Website

 (Updated Nov 11, 2010)

Another helpful nugget that I dug up on Alibaba.com.  I especially like the fact that the have provided a graph that takes people through how the process works.  You can read this here as well.

Based on the principles of good faith and safe transactions, Alibaba.com has always committed itself to providing a safe-trading environment for buyers and suppliers. If a trade dispute arises with another party, please follow the following procedures to settle the matter. Alibaba.com will always do its utmost to aid you in your dispute. However, please be aware that all information on the other party's company/products posted on the Alibaba.com website is confirmed and published by them. They are solely responsible for the truthfulness, accuracy, completeness, and legality of such information. Alibaba.com does not represent Seller or Buyer in any transaction between users of the website, and is unable to make any judgment as to the performance of users in transactions. Therefore, these procedures only allow users to lodge their complaints. Alibaba.com neither guarantees nor undertakes that any dispute will be settled or that the results of the settlement will be appropriate.
If your complaint is related to your intellectual property rights, please refer to our Intellectual Property Protection Policy and Infringement Claims.

If your complaint is related to an online transaction processed on the www.AliExpress.com transaction platform, please submit your complaint or refund request directly through the transaction platform.

  I. Trade Dispute Procedures If complaints are repeatedly received about a member and such member is found in breach of the Terms of Use of our website, Alibaba.com will take appropriate measures, including the issuing a warning; suspending their Product Listings; or terminating their service.

If you would like to report dispute now, please click here.

If you would like to learn how to submit qualified evidence, please click here.

Click here to download the Counter Notification - Trade Dispute Form

II. Alibaba.com's Suggestions
We suggest that you contact the other party as soon as possible to help resolve the dispute. Many disputes can often be resolved after direct communication between the 2 parties. If you do not receive responses from the other party after attempting to contact them, you may also try to find out their telephone number to contact them by phone. If our dispute procedures do not meet your requirements, you may also protect your rights and interests using the following means:

Lodge legal proceedings with a court of competent jurisdiction Report your complaint to the relevant public security authority/police force If a written arbitration agreement has been reached between you and the other party before or after the dispute arises, the parties may refer the dispute to the relevant arbitration commission for arbitration.