1. Definition of Credit Guarantee Service
Credit Guarantee Service is the world’s first cross-border B2B neutral third-party transaction guarantee service platform. Alibaba evaluates and grants a certain credit guarantee amount based on each supplier’s basic information and other information such as trade transaction volume on Alibaba International Station. It is a service used to help suppliers provide cross-border trade security to buyers. Credit guarantee service can be simply understood as a transaction method on Alibaba International Station, which can bring more security to both buyers and sellers.
If the seller has applied for and activated the credit guarantee service and has not been suspended or stopped from using the credit guarantee service due to violations, the credit guarantee service logo will be displayed on the seller’s store page, front-end search page, product details page, and buyer’s inquiry page.
2. Functions of Credit Guarantee Service
(1) Demonstrate credit.
Credit guarantee service can be used to obtain credit guarantee amount and can be accumulated continuously (up to 1 million US dollars). The platform will display a unique exclusive logo and credit guarantee amount. Buyers can intuitively see the seller’s credit through the logo and amount, which helps sellers improve their competitiveness in the international market.
(2) Promote transactions.
Credit guarantee service is a third-party guarantee provided by Alibaba International Station to buyers on behalf of sellers, which can enable sellers to gain buyers’ trust more quickly and reach transactions more quickly. Credit guarantee service plays a great role in improving the transaction power and guarantee power scores in the seller’s star rating. In comparison, sellers who use credit guarantee service have 2 to 3 times more exposure, clicks, and inquiries than sellers who do not use credit guarantee service. From the perspective of delivery cycle, ordinary ones take about 90 days, while sellers who use credit guarantee service only need about 21 days. Global wholesale Ready to Ship (RTS) orders can arrive in about a week.
(3) Transaction accumulation.
Based on the credit guarantee service, the number of orders placed by suppliers will continue to increase, and the credit limit can be accumulated continuously, so as to better demonstrate their strength to buyers. At the same time, the increase in the number of orders placed by suppliers will also help the performance of suppliers on the platform and the ranking of their products.