Is Alibaba Legit? 5 Tips on Avoiding Scams on Alibaba

People searching Google will come across Alibaba and wonder if Alibaba is legit. Alibaba is one of the biggest e-commerce portals in China and across the globe. However, many entrepreneurs wonder if the portal is safe enough for buyers. In this article, we will assess the legitimacy of Alibaba and offer helpful advice on the safe use of the e-commerce platform.

Is it Safe to Buy from Alibaba?

Alibaba is an e-commerce platform that handles more business than any other. China’s largest online commerce company hosts three sites: Alibaba, Tmall, and Taobao. Each site hosts millions of businesses and merchants and has millions of unique users.

A hugely popular spot for online shopping, Alibaba’s transactions last year were valued at $248 billion, beating out the sales of both Amazon and eBay combined.

Alibaba is a legitimate site. However, some instances of sellers scamming customers have occurred. The majority of the sellers on Alibaba are trustworthy, but buyers need to be aware that some sellers on the platform are not reputable or trustworthy.

What Are the Risks of Buying from Alibaba?

Alibaba provides secure methods of payment and specific trade guarantees for buyers. The e-commerce site also has protocols to ensure that sellers are registered legally. Also, buyers can officially report a seller whom they believe behaves fraudulently.

Illegitimate Suppliers

While these precautions keep most buyers safe, Alibaba cannot legally guarantee that its suppliers list and sell authentic, branded products. Some disreputable suppliers have made it through the verification process and scammed buyers differently.

Buying Multiple Units

While it is true that all online traders assume a certain level of risk, the stakes are higher on Alibaba. This risk occurs because buyers often must buy multiple product units simultaneously. As a result, buyers spend more money and purchase more volume, which creates more of a chance for items to be defective, fake, or otherwise illegitimate.

When buyers turn to more consumer-focused platforms such as Amazon or eBay, the risks go down. Buyers can usually purchase one product at a time on these competing platforms.

However, there are ways for traders to reduce the risks of buying in volume. There are also ways to differentiate scammers from honest traders.

1) Check the Value and Price of the Product

Scammers and counterfeiters focus on digital media, computer memory storage devices, and products by popular brands from the West.

Digital Media includes: Computer software, Blu-Rays, video games, and DVDs

Computer Storage Devices include External hard drives and flash drives.

Popular Western Brands include Nike, Marvel, Reebok, Apple, Sony, and Disney.

On Alibaba, there is a chance that these products may be different from the originals, fake, or knockoffs, and this is especially true if the price is far too low for the item’s value.

One way to check on these products before buying is to do some quick research. Find a similar product online and compare prices. The item may be questionable if the Alibaba product is close to half the price or more.

When buyers suspect that they might be dealing with a scammer, they should not make the purchase. Also, fake products are not limited to American or Western imitations. Some products that are supposedly from legitimate Chinese brands may also be knockoffs.

2) Buy From Verified Gold Suppliers

Some sellers on Alibaba have attained Gold Supplier status. This status means the trader runs a legitimate business from a paid, verified Alibaba account. Established sellers like this have more to lose if caught making dishonest sales.

To further verify the supplier, individuals can look for Gold Suppliers who have been using the platform for a minimum of 3-4 years. Traders with a track record such as this are generally more able to be trusted.

To find the seller’s history, look to the upper-right section of the product’s details page, which says, “Supplier’s Details.”

3) Research the Alibaba Supplier

Many buyers find that asking the seller questions helps to verify their identity. In the “Supplier Details” section, click on “Contact” or “Chat Now/Leave Message” and then use the email or chat feature.

If the seller cannot offer legitimate answers to the buyer’s questions or refuses to, then buying from them is risky. Individuals can also click on “Visit Minisite” to see what else the supplier sells.

Research can help buyers identify reputable sellers, and another way to do this is to look the seller up using Google, Bing, or Yahoo. Find out if they are authorized to sell the items they list. If any aspect of the seller’s history, products, or communication feels off-kilter, do not buy anything from them.

4) Only Use Secure Methods of Payment

When going through the ordering process, locate the “Secure Payment” box, located underneath the product’s list of ordering options.

The “Secure Payment” box safely guarantees three things:

The payment does not release to the supplier until the order is received and the buyer is satisfied.
It is refunded if the order arrives late or does not arrive due to supplier error.
If the sold item differs from the listing, the buyer can keep it and still receive a partial refund.

Instead of a bank transfer or a money order, buyers should use their PayPal accounts or pay with credit cards. These companies are more readily able to step in if fraud occurs.

5) Do Not Buy From a Seller Outside of Alibaba

Sometimes, sellers not legitimately associated with Alibaba will request payment outside the website. This tactic is used by sellers trying to steal the purchase from another seller and take advantage of buyers.

Dishonest Parties Outside of Alibaba

When contacted by an outside seller, do not respond. Some illegitimate sellers pose as Alibaba sellers to make false sales. These scammers may suggest that you can avoid taxes or fees if you complete your purchase outside of the Alibaba site. Sometimes, they take the payment and purposefully change their contact information while sending nothing in return to the buyer.

Alibaba buyers should only buy from official sellers with whom they have been in contact and who have a record of official sales.

Is Alibaba a Legitimate and Safe Site?

In conclusion, yes, Alibaba is legit. When used correctly and safely, Alibaba is a legitimate option for buyers of e-commerce. However, all buyers should take the proper precautions, including vetting the seller and their products, using secure payment methods, and not purchasing anything from outside sellers. When used responsibly, Alibaba is an e-commerce portal that offers a variety of products at competitive prices.

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