The OneTouch platform is an Alibaba owned platform, helping Chinese manufacturers and trading companies streamlining the exporting process. From their Alibaba account, suppliers can access order financing, manage logistics and export procedures.
In return, Alibaba got access to a wealth of trade information, offering direct benefits to Importers in other countries.
Keep reading, and learn how the Alibaba OneTouch helps both suppliers and their customers around the world.
This is covered
- What is Alibaba OneTouch?
- How does OneTouch help manufacturers?
- How can OneTouch help me as an Importer?
- What is the difference between Trade Assurance and OneTouch?
What is Alibaba OneTouch?
OneTouch is an Alibaba owned platform, mainly focused on helping Chinese suppliers streamlining the exporting process.
From a supplier perspective, the exporting process can be fairly complicated, as it involves:
- Order financing
- Export tax refund (months later)
- Booking shipments to customers around the world
- Export licenses
- Export customs clearance
- Customs inspections
Order financing and the overall bureaucracy have been more of an issue for Chinese exporters, compared to those in more developed countries.
Unsurprisingly, Alibaba is taking the lead and bridge the gap using technology.
Apart from the obvious benefit the OneTouch platforms offer Alibaba Gold Suppliers, there’s something even bigger.
The OneTouch platform helps suppliers transition from old fashioned export receipts and company seals – to an all-in-one digital export dashboard. This in turn gives Alibaba.com access to Chinese export data, in a way that has never been done before.
For example, Alibaba is already using the OneTouch platform to set Trade Assurance limits.
How does OneTouch help manufacturers?
Alibaba OneTouch is helping Chinese suppliers in several ways:
a. Order Financing
Suppliers often must pay their material and components subcontractors, long before their export customers have paid the order in full.
In other words, cash flow is tight when the suppliers money is tied to a never ending cycle of material procurement. Thanks to OneTouch, suppliers can use these funds to further invest in themselves.
There are of course banks already offering financing services in Mainland China, but they are not always that friendly to smaller exporters.
b. Export VAT Refunds
Exporters receive a VAT refund, around 3 months after the export date. Factory prices are calculated based on this refund, meaning that the supplier may actually take a temporary loss at first – only to recoup 3 months later.
For smaller factories, this results in a 3 month funding gap. With Alibaba OneTouch, that gap is reduced to 3 days.
c. Export Process
Alibaba OneTouch helps exporters manage the export clearance process, and even enable suppliers without an export license to sell internationally.
This increase the number of potential suppliers, for buyer’s in the United States, Europe, Australia and other countries around the world.
Some freight forwarders are specialized in certain international routes, for example Mainland China to Germany. When a customer from a new country comes along, the old forwarder may not be able to offer shipping services.
Rather than forcing suppliers to work with multiple forwarders, OneTouch takes care of this for the suppliers.
How can OneTouch help me as an Importer?
While this is a supplier platform, it offers some direct, and indirect, benefits to Importers:
1. You can now buy from suppliers without export licenses
2. It can shorten the delivery time
3. Alibaba.com can offer detailed supplier exporting data, helping you to identify qualified manufacturers – while steering clear of scammers.
4. More effective order financing could potentially help suppliers reducing the deposit, from 30%, to 20% or even 10%. At least for returning customers, that have proved to be reliable.
However, Alibaba OneTouch cannot manage the import customs clearance process or collect import duties, VAT or other taxes in the country of destination.
What is the difference between Trade Assurance and OneTouch?
Alibaba OneTouch is an online platform that helps Chinese suppliers with everything from order financing to export clearance and logistics. This allows Alibaba to gather detailed information about the transactions made on the platform, such as:
- Order value
Based on this, Alibaba can then assess the suppliers trustworthiness, and offer a higher maximum order value covered by Trade Assurance. This further helps the supplier to attract new customers.
In addition, the supplier must use OneTouch for Trade Assurance orders valued more than US$5,000.
It’s all part of Alibaba’s drive to make international trade more transparent for everyone involved.