Is Alibaba Safe?

I assume you are both referring to Alibaba's escrow service? If so, you are out of date. For legal reasons, prior to their float on the NYSE, they changed the name to Secure Payment.

It could be one of the safest ways to do business, IF you knew all the rules as well as the suppliers know them. There is a huge loophole that unscrupulous vendors use to prevent buyers from getting their money back. The big drawback is that you must not let a supplier keep you in discussion until the time limit runs out. That is a strategy that has often been reported.

The Secure Payment rules published by Alibaba are very complex and it is difficult to get the full story on their site.

I suggest you go to the Alibaba site, click on For Buyers, then under Trade Services, click on Secure Payment. The page will open describing very briefly how it works. Scroll down for more explanation. Take note of what it tells you about "Resolving Disputes."

Click on "Open Dispute" to see how that can't be done until 5 days after the shipping date. NOTE: they don't tell you but that means the agreed shipping date when you place your order. It does not mean the date the goods were shipped.

Take special note of the fact that you are expected to negotiate with the supplier, and the old system said that if no resolution after 30 days the matter would automatically go to mediation. That has now been changed to 20 days, and it is no longer automatic. You must escalate the dispute within that time or your claim will be rejected.

You must complete negotiations within 20 days, but I strongly recommend that you escalate and ask for mediation if you have not been given a firm and positive answer by the supplier within 10 days of opening a dispute. Don't be taken in by a supplier using the strategy of a friendly manner promising to completely satisfy your claim. They are just as likely to be keeping you on a string until the 20 days has passed then you won't hear from them again.

I have received many sad tales about Alibaba paying the supplier because the dispute had not been escalated within the required time. That required time used to be published on their site, but it is not easy to find. That's why I have stated that for you. - 20 days.

Some of the recent changes to their site have not been done competently. If you are searching for information and you click on "How Long Does a Dispute Last?" The answer you get is 5 days after the date of shipping. That is incorrect! It lasts 20 days. See if you can find where I found that.

In summary, Secure Payment gives an illusion of security, but will only be secure if you read and understand all the rules. The suppliers have, and they use them to their advantage.

"If you think education is expensive - consider the cost of ignorance."

1. I already commented in Post #29 about trade references and due diligence. Might be worth scrolling back.

2. Calling a supplier on the phone does not necessarily mean you will contact someone running the business, or even someone who knows a lot about the business.

Many businesses in China are run by people who speak no English. They employ someone who does, usually a young woman. She will have a limited knowledge of the business, although she will know what products they sell. That does not mean she would be able to answer complicated questions.

The English spoken by many in China is very limited. When I first visited one of my suppliers there in 1987 the owner of the business actually spoke English. He loved the English language so much that he taught it one night a week. The problem was that his own English was so bad that I struggled to understand him! His students no doubt also think they can communicate in English.

Im glad Ive got your book, cos now I know where its safe to buy. Good suppliers, good prices, no hassles.

That's the problem. Good, generic information and experiences shared, get buried because some twit is too lazy to use the search function and just makes another thread. There are hundreds of threads like this and if people used search instead, and didn't have to worry about trolls complaining that they bumped something, browsing this forum would be a truckload easier. There is nothing wrong with bumping a thread full of useful experiences. Period.

*bump

I use Alibaba all of the time and even sourced a product that became a bestseller on Amazon by using this site. Its a great resource but you have to know how to use it. A lot of scammers who will take your money, or (just as bad) send you crappy quality goods.

Make sure the supplier you choose:

(1) Is a Gold Supplier (use filter on site)
(2) Has been assessed by a third party (use filter on site)
(3) Sends you emails with a link BACK to their Alibaba storefront
(4) Accepts PayPal as a form of payment (so that you can use disputes if there are any issues)

I had to dispute an issue once and PayPal comes through as long as you follow the process.

Its a great resource that needs to be used with caution. If it were easy, everyone would be doing it. Its not easy but it is definitely worth it.

Be always beware of something you have not used before