I am not sure how many people still remember a big event about alibaba several months about, it is around the beginning of this year: Jack Ma fire some senior executives, who are very important executives in Ali company. That’s a very big personnel adjustment in the history of this company.
The reason is, there are many chinese suppliers involved fraud when they doing business with the other country business men, and the chinese suppliers send nothing after they get the payment from their buyers, or they just send very bad quality products. From the statistics given by Ali company, there are 1107 suplier involve fraud. Is it truly?
Do you have any idea about what kind of supplier of these 1107 fraud? Well, let me tell you, most of these guys supply counterfeit products. In another word, They providing counterfeit all over the world. Mostly, they do business with Americans. And they Americans know the products are replicas. Many people may in confusing about that. Yes, both of the business men know the product are not authentic ones, even they know the business is illegal, they still take the risk to the business. Since the profit is quite good, I believe the seller of Ali Company would know that definitely.
But what happen when they do the business? Why chinese supplier take the money, run away? Never send the product to their customers? well, in the very beginning, they business are going good, both sides trust each other. buyers send money, sellers send the good, that is a business nothing different from the other business, but some greedy people found that are profitable, and they join this business, they could get a very easy Alibaba membership by paying money, they just do not want to do the long term business, they just want to take the money, and run. so the tragedy went.
And these guys take the best advantage of the weakness of human being, they quote very low price to attract the customers, they deceive their customers, and after they got the money, they would block their customer’s email, msn, all of the internet’ communicate tool. Their customer could not complaint that nowhere.
Some people will doubt why this inner story uncover under so late? Evan after thousands of people scammed? well the reason is simple, Ali already know there have lot of suppliers were not good, they know they were selling the counterfeit, but they could not ban them at all, since these customer are their source of income, they protect the suppliers means protect their own money pocket?, 1107 just a figure show around the public, that is not the real number.
Even after then clean up, there still got lot of suppliers who do the counterfeit business, they may the honest business men who want to do the long term business. So be careful if you are going do any business in alibaba.