In China, 2300 Suppliers Use Alibaba.com to Cheat Customers

Our Supplier Evaluation and Capabilities Verification Audit is the most preferred service wanted by customers seeking for new vendors (suppliers) in China. China is such a big country with suppliers popping up every day. How do you know that the supplier is not a fraudulent company? Or that the supplier has a factory which belongs to him or just a paid “pretender” factory?

 

If you are buying from a new Chinese vendor, how do you verify its manufacturing, production or product capabilities when you are sourcing them through an e-commerce website? Would you trust the Approval Rating provided by an on-line sourcing website? We know the great financial disaster of 2008 was caused by the high credit ratings given by Moody’s, Standard and & Poor to financial instruments because of paid credit ratings by their customers.

 

Here is something you need to read to understand how AMREP Supplier Management Services can add value to your Strategic Outsourcing.

 

Extracted from BusinessWeek, February 28, 2011, written by Caroline Winter

 

 

Alibaba.com. Fraud sparks a shakeup

Alibaba.com shares took their biggest tumble in a year after an internal probe found more than 2,300 vendors used the Chinese e-commerce site to defraud global buyers. CEO David Wei and COO Elvis Lee who weren’t accused of wrongdoing, resigned to take responsibility for the “systematic breakdown” of integrity. In 2009, some 1,219 of its suppliers engaged in fraud and 1,107 did so last year, the company says. The probe also found that roughly 100 of Alibaba’s 5000 salespeople, as well as some supervisors and managers, either intentionally or negligently allowed vendors to evade the company’s authentication and verification measures and set up “fraudulent storefronts”.

 

Find out how our supplier verification services work in China from Isabel at 1 954 4430046 or
email her at supplyquality@amrepinspect.com