JASON KAYE2ND JULY 2021
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An export powerhouse, China embraces exporting goods on a global scale, enabling businesses around the world to take advantage of low manufacturing costs and a huge choice of suppliers. While buying from China is easier than ever thanks to advances in transportation, communication, and international payments, it can still seem daunting. With your supplier on the other side of the world, how can you trust your goods will arrive on time and comply with your standards?
What’s more, for decades UK buyers would visit trade fairs like the renowned Canton Fair to touch and feel products and gauge quality. Events such as these were the main link to Chinese exporters, and where a place where buyers could build direct relationships with suppliers and manufacturers. But with travel restrictions in place, how can you instill confidence in new suppliers when you can’t visit factories or attend traditional trade shows?
This is where Trade Assurance comes in. To see the difference it could make to your international business, here’s a breakdown of how this service can make buying from China less risky with pre-agreed delivery dates and product quality.
Trade Assurance is a free transactional protection service provided by alibaba.com to boost the trust between buyers and suppliers. Specifically it offers protection for when:
If an issue arises with an order covered by Trade Assurance, alibaba.com will help you reach a satisfactory outcome. This could mean reimbursing some or all of your costs, or reaching another agreement between you and your supplier.
So you’re not lulled into a false sense of security, it’s important to note that buying from a supplier offering Trade Assurance doesn’t mean you’re guaranteed a refund. You and the supplier need to agree to some specific terms when ordering the products; you also need to follow the Trade Assurance process, for example, communicating with the supplier via the platform so there’s an official record of what you’ve agreed.
Only when you do this, and the mediators agree that the terms of the order have been breached will you get a refund.
By giving you some of the assurances you would expect when doing business closer to home, Trade Assurance can empower your business to approach new suppliers in China. Here are some of the ways it can help you grow your business.
It doesn’t matter if your company is only just expanding into Asia, or if you’ve ordered with a Chinese-based supplier before, Trade Assurance can cover you from your very first deal. This makes it easy to take advantage of reduced manufacturing costs in China because you can approach a new supplier with the peace of mind that a Trade Assurance order should meet your specified product standards.
Whereas before you might have had to rely on a personal recommendation or suppliers you have a long-established relationship with, you can now branch out and try a new supplier offering Trade Assurance. By reducing the risk of approaching a new supplier you can quickly increase your network of trusted suppliers – and if you’re not entirely happy with the service offered by a supplier there’s no obligation to keep using them.
While buying from China can reduce costs, if you can’t shop around for a good deal your savings will be limited. This is where Trade Assurance is a key benefit as it frees you from being restricted to the prices of a narrow pool of suppliers.
You use Alibaba.com to search for a good price, then check to see if that supplier is signed up to Trade Assurance. If they are signed up, then you can take advantage of the cost saving knowing that you can stipulate the standard of goods and a shipping deadline when placing your order.
The sheer distance goods have to travel between China and the UK can make businesses hesitant to order from a China-based supplier. Trade Assurance can help alleviate this worry as you can specify a shipping date in your contract with the supplier. If they miss this date you can file a dispute to claim a refund.
Knowing when your products should be shipped can make it easier to plan distribution and manage your stock. This can lead to additional savings on top of the product price as it helps you make your distribution chain as slick and efficient as possible. For example, if you have a large order coming from China, knowing when it will ship will mean you can plan getting the goods out to stores or customers as quickly as possible.
When placing an order with a Trade Assurance supplier be as specific as possible about your requirements in the purchase contract. Stipulate the exact materials and dimensions, for example the precise mix of cotton, nylon, and polyester rather than referring to something that’s hard to quantify like ‘good quality material’.
Once you’ve agreed your specific product standards with the supplier, Trade Assurance ensures the product you receive should meet the requirements, or you can raise a dispute. This gives you the buying confidence to make significant orders from a supplier in China knowing that despite the production costs potentially being cheaper the finished product should be of an acceptable quality.
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