Alibaba Trade Assurance Guide. You won’t be Scammed Anymore.

a lot of people they are afraid about purchasing Alibaba because they don't know who they are dealing with and they are afraid to wire Selden's or hundred of thousand US dollars to those supplies that they never met in my last video I have a reveal around ten types of very common scams and the tricks that a lot of that supplier they will play and they're not just simply take the money and run away but you will very high risk of receiving bad quality products well since Alibaba start to over the trade assurance service around a few years ago all this risk can be perfectly eliminated if you can use it correctly and place the order to supplier vital trade assurance but there's also players on Alibaba can accept trait assurance and is it 100% that you can get your money back if you are not satisfied with the product you received and what's the correct way to use the trade assurance welcome to watch this complete guide of Alibaba trade assurance and I will answer all your questions and eliminate all your concerns about the trade assurance today I'm Jake the founder of Jing saucing Khan we helped thousands of people source quality products from China since 2015 and I will share all my knowledge is about sourcing manufacturing and importing in my videos so subscribe now then you won't miss the next coming video some of you may be purchased product on Alibaba before but I guess for most of you you have thought about using Alibaba but never tried so for today's video I organized the content into three sections that all of you can benefit from my following content no matter you have related experience or not in section 1 you will learn a basic understanding about what is trade assurance and how does it work to secure your purchasing in section 2 I will teach you how to create a trade assurance order and a place order to supplier in section 3 you will learn how to open the dispute get your money back when you receive bad quality products and to ensure you won't be ripped off by the bad suppliers let's get started traditions is a transaction protection service provided by Alibaba to boost the trust between the buyer and the suppliers the buyer can get refund if the supplier cannot deliver the product on time or they deliver you the better quality products but the way that Alibaba treat assurance protect you is totally different from protection you got when you were a buying product on Amazon or Aliexpress for b2c platforms they will usually hold buyers money for quite a long time and they will release the money into the seller once the buyer is satisfied but this kind of way doesn't work in international trading because for b2b trading orders usually the purchasing quantity is large and other values is also very large and order at least values like few thousand US Dollars and supplies margin is also very very tiny when compared with retailers if Alibaba hold by assigning just like other p2z platforms thin suppliers will be shot of cash flow very quick so Alibaba figure out a very smart way gives every supplier a credit and which is known as trade assurance element and you can easily find this credit value in every supplies profile page everybody's credit is different and no seller will firstly start with few thousands credit the more traditional transaction he used the higher credit the supplier will have it's just like how you use the credit card the more money you spend the more credit the bank will give you if you can keep a very good red card discredit the trade assurance limit it means how much US dollars value will Alibaba guarantee for this supplier if the money you've sent to suppliers is less than this credit then the supplier can get the money right away and then if you are not satisfied with the product you received and the supplier reveals to give your money back then Alibaba will become the charger if the supplier lose this case then Alibaba will give you the compensation first and then they will charge this money back from the supplier by themself if the supplier refused to pay this money to Alibaba then Alibaba will close supplies account Susan which will be a very big loss to this supplier here is a very important question does all supplies on Alibaba accept orders going through the trade assurance the answer is no when you search products on Alibaba you can find that almost every supplier will have this shell icon and it means they can accept trade-ins I can tell you the choose that every Chinese supplier will have this icon but for supplier from other country or other areas very few of them will have it that means most of them they cannot accept rate assurance even though all Chinese suppliers they are able to accept trade Insurance orders but still very big percentage of them are not that comfortable for using it especially when the order value is large like over 50,000 US dollars or over 100 thousand US dollars because the supplies also don't know the bias real background and don't know either buy is trust or was the either because there are existing some bad buyers and they take advantage of the fact that Alibaba is more likely to give more benefit to buyers when there's a dispute between Vienna seller in the refund process thus Alibaba can get more good reviews from buyers then they can attract more sellers come to Alibaba and pay more money into this platform based on this kind of situation a lot of suppliers they prefer not placing order via twitter assurance but just let the buyer send the money to their bank account directly because no matter its manufacturer or trading companies their net profit is very small only like halves like 10% and the force on industry like steel panels their net profit is even less than 3% once the customer required for compensation because of a couple of days delayed to delivery or just very small defects then the supplier will lose money so if the product you want to purchase there are a lot of suppliers then of course you need to choose those who Appetit reassurance order but if there are not so many supplies available for the product you want then it's still considerable to choose the suppliers who don't accept the trade assurance because don't accept rate assurance order doesn't mean he is the better supplier and you can still judge if he is a reliable supplier in other aspects the next question is what should be attention when using treat assurance the first thing you need to check is suppliers trade assurance lemon which also means how much US dollar value credit will Alibaba guarantee this supplier I have mentioned above new sellers credit will only have like few thousand US dollars and the more traditions order the supply use the higher limit you will have so you have to check if the suppliers trade Assurance limit is over then the order you want to place let me give you example if the supplier only have 20 thousand US dollars limit however you want to place of 50 thousand US dollars order after you're sending this money the supplier can only get 27 years dollars from the bank account which is controlled by Alibaba and the rest 30 thousand US dollars will be released to supplier only when this order is finished in this kind of situation the supplier will be shot of cash flow and of course he will refuse you to place orders through the trade assurance well for traditionally meant it's not always the higher the better and my experience is as long as it can cover your orders value it's enough there is some tutorial on internet set the higher trade assurance limit it has the more trustworthy the company is it's not correct because a lot of suppliers they will play tricks to improve this limit in order to get a better ranking in Alibaba the second thing you need to pay attention to when you are using the trade assurance order is that you need to write all your requirements over the product and the delivery information detail as possible because one sense this period happened between you and a supplier then all the detail requirements in the trade insurance order will become the most powerful evidence even though the email or text message communication history can be used as the evidence but sometimes they will be quite ambiguous so after placing order if there's any change happen in the order for example you'll change the purchasing quantity or you change the color of the product you always need to add this modification in your trade assurance order after your watching the section one you probably have very good understanding about what is the trade assurance so in this section I will show you a real case to teach you step by step how to create a tree insurance order correctly I'm going to place order to the Alibaba account of my friends company this is my friends company page in Alibaba Shanghai home being international and there are millions sell the promotional pants and they're already on Alibaba for seven years and a very trustworthy supplier so if you need all kinds of promotional pens promotional stationaries you can find them on Alibaba and get a very good quote when you find the right supplier to make your products and you confirm all the details before the production then you can just do nothing just letters a supplier to help you create this trade assurance order and then you can go to my orders and find this trade assurance order and confirm it otherwise you can create as a trade assurance order by yourself and then letters a supplier to click the confirm button and then you can move to the payment process and now just let me show you how to create the trade assurance order by yourself firstly you need to go to the messages center and if you see this start order button click it and then we move to the right side where you can fill out your order details then you need to add products if you want to add item which is not existing in his product list for example you want to add additional packaging box then you can click here add unreleased a product if you have a contract between you and the supplier then you can click here to add the contract for most cases no matter you place orders through trade insurance or not most of suppliers will send you an invoice or contract so you can just upload here and here you can choose the appointed should be mastered with your supplier and you always need to remember that you have to confirm the shipping method before you placing order you can either use your own freight forwarder to arrange the shipping or just let the supplier help your ship the products to your place return is a very important element that you cannot make it run for three turns if you are not so clear with the responsibility for your site or the supplier side you can just click trade turn overview it's very easy to understand through this infographic the most common year straight turn is y xw f OB CI f and DDP and you can just forget all the rest because they are useless for most buyers the exw turns means you need to find someone to pick out the cargoes at the supplies place and f OB means your shipping company will pick up the cargo at the air or seaport of China the CI f means your shipping company needs to pick up the cargo at the port of your country and as a supplier will arrange the shipping from his warehouse all the way to the port of your country and DDP is the simplest way which means the supplier will be responsible for shipping all the way from China to your home with all cast included if there's any shipping costs that you need to pay to the suppliers for f OB CIF or DD peters just type in here if your supplier help you arrange the shipping all the way to your country and you can inquire him about how much the interest costs for the freight and the usury it's about 0.1% of the product value however this insurance will not pay you anything for the products is damaged and you will only in get compensation when your cargo is lost for this dispatch date you need to reach agreement with the supplier you can either let the supplier to ship out the products once he received the deposit or balance or just specify an exact date for shipping out but you cannot use trade assurance to help you guarantee that when you can receive the products because the International logistic is very complicated and the delivery time will be influenced a lot by the shipping and also by the import/export process then you need to edit how much money you should pay for the initial payment to let the supplier start making the products and generally Chinese supplier will require a 30% initial payment and then the balance should be paid before they shipping out the products for small orders like less than two thousand US dollars a lot of supplier will require a full payment for the initial so you always need to confirm with the supplier about what is a payment earn before you create is a traditional order then we look here you can hire certain party inspection companies to travel to supply as place to inspect products quality and also confirm if the quantity and the function is correct this service is provided by Bureau Veritas in China certification and inspection company is this service recommended I don't think so because the general price to hire a third party inspection companies is around three hundred US dollars for whole day and for this to world-famous inspection companies $118 and $188 is kind of like two less for them and they will just maybe only spend one or two hours to help you inspector products which means very very less percentage of your product will be inspected my suggestion is if you really need someone to help you randomly pick up a product to see if the quality is good and calculate the quantity of the batch is correct then you can use this service but if you want someone to help you inspect products as many as possible and in a professional way then it's more recommended to use a third party inspection company and use their standard service which costs around 300 US dollars a day after you're submitting this order then you need to wait until the supplier click the confirm button and then you can arrange for the initial payment for different countries the payment method could be some difference but the two main method is credit card and telegraphic transfer for all countries for credit card payment you need to pay actor 2.9% as a transfer fee which is a lot for telegraphic transfer you need to send the money into the bank account which is given by Alibaba and the beneficiary is your suppliers company name but this bank account is created by Alibaba and which is also controlled by them but if you send the money into supplies other bank accounts then you will be out of the trade assurance protection I don't want you that kind to this bad situation that you have received bad quality products and apply for a refund but if it really happened to you then you need to fill out this refund phone and you need to provide evidence as detailed as possible so here is a question is it really easy to get a full refund just like online shopping of course it's not as easy as you thought unless the product you received has too many defects that you cannot use or you cannot resell to other people or the product is completely different as you required it then you have the very high chance to get the full refund in other situation you need to spend a lot of time to dispute with supplier to get your money back or maybe just a part of the money back because it's international trading and the product you buy a brand new made after your placing order and usually product are customized according to your requirements and there will be local on the product or there will be some your company information on the packaging box if the product get returned back it's almost not possible for the supplier to sell this product to other customer and also the cost for returning back to China is also very huge and sometimes even more expensive than the product value and also supplies margin is very low for example he sell you a product for five dollars and he only got like one dollar profit if he gives you the five seven US dollars full payment back which means he have to sell around twenty five seven US dollar valid product to other customers then it can cover the loss in your order but for most ecommerce retailers they only pay like five US dollars for the wholesale price for the product from China and they will sell around thirty dollars to their customers and only less than ten percent of the product they sold will be refined by the customer but they still have very good profit so that's how it makes sense that it's not easy to get a full refund on Alibaba if the product you received only have very small defects and they're still good to be used then you need to dispute with supplier very hard if you cannot reach agreement with the supply about the compensation solutions Alibaba will still judge which side in this case in the end but Alibaba still encourages a buyer and a seller to negotiate to reach agreement because Alibaba they don't want to be a bad guy to either side thank you for watching this video if you have any questions about Alibaba trade assurance please leave your comment below and don't forget to subscribe to my channel and if you want to source any product in China want to find reliable suppliers in China please let me know I'm jinx awesome calm and I will see you in the next video

Channel: Jingsourcing

Views: 53,470

Rating: 4.9568181 out of 5

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Id: mesk5lKOj6A

Length: 20min 0sec (1200 seconds)

Published: Mon Mar 09 2020