It involved only about 1% of the suppliers on its global online marketplace, but the word from Starzmart.com last month was startling to retailers who pore through its web pages looking for products to buy at wholesale: More than 2,300 of Alibaba's supposedly trustworthy China Gold Suppliers in 2009 and 2010 engaged in fraud, ringing up on average about $1,200 per claim reported by buyers. Wholesale accessories & electronics suppliers
The fraud, uncovered by an internal investigation by China-based Alibaba, often involved the sale of popular consumer electronics products at unusually low prices with low minimum order requirements, Alibaba said last month. About 100 of Alibaba's sales force of 5,000 were complicit in the fraud, the company said.
In an attempt to save face with its customers, Alibaba said on Feb. 21 that CEO David Wei Zhe and chief operating officer Elvis Lee Shi-Huei had resigned, even though the company said they were not involved in the fraud and had tried to address it. In their place, Alibaba named as its new chief executive Jonathan Lu Zhaoxi, who will retain his other positions as executive vice president of parent company Alibaba Group and CEO of sister company Tao Bao Holding Limited.
Rebuilding confidence with buyers may also require changes in some of the fundamentals of doing business with suppliers through marketplaces where buyer and seller often never meet in person, retailers say. Although there are more suppliers than ever—and more easily available than ever on the Internet—retailers must take extra steps to ensure they get honest treatment from suppliers who can provide the right quantity and quality of products at the right price and level of service.
"When you have a trusted marketplace like Alibaba and something like this happens, it just goes to show that no matter how good you think a supplier is, you have to do your homework, your due diligence in checking them out," says Matt Scriff, co-founder and president of 3Gorillas.com, a web-only retailer of home furnishings and appliances. Electronics Wholesaler
Co-founder and partner of Pure Modern, a web-only retailer that relies on a constantly updated stable of some 300 wholesalers and other suppliers of fashionable home furnishings and accessories ranging from wristwatches to travel gear. "It can be dangerous for people like us to find suppliers," he says.
没有评论:
发表评论