![]() ![]() If you found your suppliers on Global Sources or at a trade show for example, they will not qualify unless they are a pre-approved Alibaba supplier. In case of any quality disputes, Alibaba requires a 3rd party inspection which normally costs US$200-$300 to verify the problem.Īnother downside is that it is limited to pre-approved suppliers on Alibaba only. ![]() In case of any problems you can file a dispute and Alibaba will mediate to help you get a refund.Īs to whether you can get a complete refund depends on the circumstances. The main benefit to you the buyer is that they can hold the funds in escrow until you receive and approve the order. Escrow service: Alibaba secure paymentĪlibaba besides having their trading platform also offers an escrow service called Alibaba Secure Payment (formerly “Alibaba Escrow”). You don’t want to spend all your time negotiating only to find out at the last minute they don’t accept Paypal. RFQ and follow up questions) whether they accept Paypal. Added cost – Suppliers will typically add 4% to 5% to your total order value which you will typically pay for (whether you are aware of it or not)īest practice: If you are considering Paypal, ask suppliers in the early negotiations stage (e.g.Not widely accepted by suppliers in China.Flexible payment – Can pay using a credit card or by bank transfer.Widely used around the world (though not popular in China).But as orders grow larger and trust builds consider moving to bank transfers to reduce costs. Also it’s a great way to reduce risk when placing with initial orders with new suppliers who you are still evaluating. Recommendation: Good for samples and small orders. So that means an additional 4% to 5% added to your order total. Second, though Paypal is free for buyers, sellers are charged fees for this and they will pass this on to you, the buyer. So why not use this to pay all your Chinese suppliers? First, Paypal is not widely accepted in China. It offers payment protection for buyers, is fast and easy to use. Letters of credit or “L/C’s – AVOID because they involve a lot of paperwork and bureaucracy which isn’t worth your time at this stage.Western Union – Carries a high risk of getting scammed because it offers little protection.Bank wire transfer or “T/T” – but be sure to negotiate the right payment terms.“It’s growing so quickly that there’s room for every player in it.So you’ve found the right supplier who has the product at the right place for you and you’re ready to click the “Pay Now” button.īut wait – you’re wondering should I use Paypal or Alibaba’s escrow service? What’s this I hear about T/Ts and L/Cs? What about Western Union? Here is an overview of the common payment methods for small business importers and my recommendations.įor small volume importers the most commonly used payment methods are: However, in a recent interview with Bloomberg, PayPal Chief Executive Officer Dan Schulman said that it wasn’t too late for the company to stake a claim there. accounting for a majority of digital payments, according to Bloomberg Intelligence. Gopay has licenses for online, mobile and cross-border yuan payment services.Ĭhina’s $27 trillion payments industry is dominated by a few companies, with Ant Financial Services Group and Tencent Holdings Ltd. In September, China’s central bank granted PayPal approval to buy a 70% stake in a Chinese payment company Gopay Information Technology Co., allowing PayPal to become the first foreign compapny to operate in China’s payment service market. The UnionPay partnership is part of a string of moves by PayPal to grow its Chinese presence. ![]() In a statement, Magats said the new partnership would give the company the option to “expand PayPal’s digital wallet to physical retail locations where UnionPay is accepted in China, or internationally.” The companies also said that the tie-up would allow PayPal and UnionPay’s global subsidiary, UnionPay International, to “explore opportunities” to expand PayPal’s reach in China. “There is a lot of room for us to help people visiting from China find a way to pay while traveling,” Jim Magats, senior vice president of global payments at PayPal, said in an interview. Users of Shanghai-based UnionPay, the world’s largest card company by payment volume, will be able to add their UnionPay cards to PayPal accounts and use them in a number of countries where PayPal is accepted outside of China. The partnership will allow some UnionPay cardholders access to PayPal’s network, and eventually, could pave the way for PayPal to be accepted at Chinese locations that take UnionPay. in a move that could expand PayPal’s network in the country. is taking another step into the giant Chinese payments market, partnering with state-backed China UnionPay Co. ![]()
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