Alibaba.com launches Trade Assurance service for local entities

Shawn Yang, general manager of global business development at Alibaba.com, speaks during a press conference in Seoul, Monday. Courtesy of Alibaba.com

Alibaba.com, China’s leading global business-to-business commerce platform, said Monday it will officially launch its Trade Assurance service in Korea to support local small- and medium-sized enterprises (SMEs), aiming to expand its network of Korean sellers by offering a more secure and reliable online business platform to reach the global market.

“As K-culture’s global popularity continues to rise, ‘made-in-Korea’ products are gaining increasing traction on Alibaba.com … From skincare and cosmetics to snacks, fashion and even medical products,” Shawn Yang, general manager of global business development at Alibaba.com, said during a press conference held in Seoul.

“Alibaba.com is committed to deepening its roots in the Korean market by increasing localization efforts and investments. We will continue to actively support more Korean SMEs in using our digital tools to go global.”

Trade Assurance is an order protection service designed to reduce uncertainties through an escrow-based secure payment system while providing a trustworthy environment for both sellers and buyers throughout the entire B2B transaction process.

It will have the company act as a neutral third party to grant the credibility of both buyers and sellers, to make it easier to close deals while also allowing sellers to identify potentially untrustworthy buyers early in the transaction process and rule out any risks.

The service supports major global payment methods for convenient transaction options and accumulates sellers’ performance, which can help raise their credibility and attract more traffic on the platform, ultimately leading to more inquiries and orders.

Summer Gao, head of global supply chain at Alibaba.com, speaks during a press conference in Seoul, Monday. Courtesy of Alibaba.com

It also allows Alibaba.com to arbitrate disputes based on the platform’s recorded data from a buyer and seller’s transaction.

“We instruct buyers and sellers to present evidence based on the data generated online to address the issues they are experiencing. Because these evidence materials are recorded at each stage of the process, we are able to efficiently mediate disputes or misunderstandings,” said Summer Gao, head of global supply chain at Alibaba.com.

“In B2B global trade, buyers care most about the safety of their funds and whether sellers can deliver as promised.”

She explained that the service will help reduce buyer uncertainty and enable more reliable global transactions for Korean sellers.

Alibaba.com has been actively localizing its platform in Korea, establishing a Seoul office last year. In July, it launched a dedicated page showcasing products from Korean companies and has since been offering marketing and consulting services to support local businesses on the platform, including an artificial intelligence-based assistant service. Additionally, the company opened a second office in Busan last month.

The company explained that the number of listed Korean products has increased by 40 percent compared to last year, while seller counts have grown by 80 percent and traffic and exposure of Korean products rose by 50 percent.