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E-commerce and the Internet can be an efficient business tool, but companies both big and small must make some effort toward safeguarding their online transactions. Without proper attention, all kinds of fraudulent activity can take place online or offline and damage a company's growth and reputation. Online fraudulent activities include spam e-mails, identity theft, phishing, counterfeit sales and the spread of spyware.

One of the easiest ways to avoid these issues and find trustworthy buyers or suppliers is doing business with companies already operating on established business-to-business (B2B) online marketplaces such as Alibaba.com. Unlike other online business channels such as search engine marketing, online marketplaces target a highly specialised group of business people who are interested in B2B trade, thus increasing the likelihood of companies finding genuine buyers or suppliers wherever they are located.

Since the nature of e-commerce brings total strangers together to conduct business online, companies must be able to verify themselves as secure and credible for buyers. For that, a number of online marketplaces provide third-party services to authenticate and verify suppliers listed on their websites.

For instance, Alibaba.com offers a "TrustPass" membership that requires suppliers to undergo authentication and verification procedures conducted by an independent third-party agency. Our experience shows that more than 85% of buyers prefer to do business with "TrustPass" members only.

Moola Ram Potalia of Town Aart, an Alibaba.com member, says his TrustPass membership adds more credibility to his business and increases the number of serious customer inquiries.

While in traditional business relationships trust is usually based on face-to-face meetings or recommendations from colleagues, friends and business partners, users of online marketplaces can communicate regularly and in real-time with their potential business partners to build trust. Helping to put names to faces, Alibaba.com's communications tool allows buyers and suppliers to video conference and close business deals in real time.

For those with more questions about e-commerce security, the answers can often be found in online marketplaces. For instance, Alibaba.com hosts a number of trade forums for its members and industry experts to interact and exchange best practices.

Trust is the cornerstone of any successful online business, and no matter how many methods there are to safeguard online transactions, all members of online marketplaces are ultimately reminded to practice due diligence. Face-to-face communication, requesting samples and product inspection are all important to ensure that both parties are comfortable about conducting business. Be sure to take the necessary steps to safeguard your online transactions, and your business will be sure to benefit.