Case Study: Cutting Chargebacks by 42% in 90 Days using AliExpress Invoices and Order Evidence to Win Disputes with PayPal and Stripe

Chargebacks are rising fast, and small ecommerce teams are feeling it. In the last year, merchants saw a sharp uptick in cardholder disputes, with ecommerce chargeback rates up 222 percent between Q1 2023 and Q1 2024 according to industry analysis compiled by Chargebacks911. At the same time, the cost per dollar of fraud for US merchants climbed to $4.61, based on the latest LexisNexis True Cost of Fraud Study. When margins are tight, you cannot afford to lose valid sales to avoidable reversals or to weak evidence.

This case study details how a mid sized dropshipping store, sourcing most products from AliExpress and selling on Shopify, used rigorous documentation and one click AliExpress invoices from AliBilling to reduce chargebacks by 42 percent in 90 days and significantly increase dispute win rates across PayPal and Stripe.

The chargeback climate merchants are navigating

Friendly fraud is now a top concern for merchants, with nearly three quarters of surveyed businesses reporting an increase in friendly fraud in 2024 in the Chargebacks911 Field Report. Broader fraud and dispute trends reinforce the urgency. The 2024 Cybersource Global Ecommerce Payments and Fraud Report found that friendly fraud rose into the second most common fraud attack vector for merchants, and that many teams still underestimate its share of their overall disputes, a pattern also summarized in the Cybersource 2024 report.

While prevention is the first line of defense, winning legitimate disputes when they do occur depends on compelling, structured evidence. According to PayPal's Braintree evidence requirements, card brand rules require you to submit categorized documentation that aligns with specific evidence types like proof of delivery, tracking, and prior non disputed transactions. Stripe similarly emphasizes structured packets, noting in its dispute evidence best practices that you should include proof of authorization, proof of service or delivery with the full delivery address, and a clear, concise narrative supported by legible documents.

Both platforms stress deadlines and formatting. PayPal specifies that if you do not respond by the reply by date, the dispute will be accepted on your behalf, as outlined in the Braintree guide. Stripe details file size and page count limits and recommends organizing evidence chronologically and by type in its best practices. For Visa fraud disputes, Stripe also supports Visa Compelling Evidence 3.0, which can tilt decisions in your favor if you present matches to prior undisputed transactions and key elements like device, IP, or shipping address.

The store, the baseline, and the problem to solve

The merchant in this study runs a niche home goods catalog on Shopify and fulfills via multiple AliExpress suppliers. Monthly order volume averaged 2,400 to 3,100 orders, with an initial chargeback rate hovering around 0.9 percent. The team sold internationally and accepted payments through PayPal and Stripe.

The core problem was documentation. AliExpress does not provide native invoices for many suppliers or for historic orders, which made compiling evidence time consuming, inconsistent, and occasionally incomplete. Staff needed to piece together seller messages, screenshots of AliExpress order pages, and third party tracking links to prove shipment and delivery. Dispute wins suffered, especially for Item Not Received and Product Not As Described reasons. The team’s average evidence submission time was 6 to 8 days after notification, and some PayPal claims auto closed because replies were late, a risk highlighted in PayPal’s SMB guide which notes sellers are asked to respond within 10 days on claims.

Why invoices matter to PayPal and Stripe

Invoices will not win a dispute alone, but they establish the transaction record and anchor your evidence packet:

• On PayPal, the Braintree documentation explains that you must supply evidence that meets card brand definitions of compelling evidence and categorize each item, including file based items like proof of delivery and signed delivery forms, and text based items like the carrier, tracking number, and tracking URL, as laid out in PayPal's Braintree guidelines.
• On Stripe, best practices recommend including receipts with amounts and dates, product or service descriptions, and proof of service or delivery that shows the full delivery address, not just the city or postal code, per Stripe’s evidence guide. Stripe also emphasizes clear screenshots and concise summaries for each file.

For friendly fraud on Visa, the key is broader transaction context. Stripe’s Visa CE 3.0 documentation shows that matching elements like purchase IP and device ID across prior non disputed transactions can be decisive.

In short, the invoice is the backbone of the packet. It ties the buyer, the order ID, and line items to a seller of record with tax and company details, then supports your shipping and authentication evidence.

The operational change, powered by AliBilling

To eliminate gaps and reduce handling time, the team adopted AliBilling, a Chrome extension that adds a Download Invoice button directly inside AliExpress My Orders for both new and historic orders. Invoices are generated in one click as printer friendly PDFs, with customization options for company name, VAT or tax IDs, supplier details, and date formats. Because invoices could now be pulled on demand for any order, the workflow shifted from reactive to systematic.

The setup took under 30 minutes. Following the step by step guide in How to download an AliExpress invoice, the team configured templates for their legal entity details and mapped Shopify order numbers to AliExpress order IDs in their CRM, which simplified cross referencing during disputes. When disputes arrived, agents produced consistent packets in less than 24 hours.

AliBilling’s plans are budget friendly and allow unlimited invoices, which mattered for a high volume store. The website lists a simple annual option at $29 per user per year, and the Chrome Web Store offers alternatives like $20 for 3 months, $35 for 6 months, and a $60 lifetime plan, giving teams flexibility during peak seasons. For questions on usage or compliance, the team leaned on FAQs and 24 by 7 support.

Building compelling evidence packets for PayPal and Stripe

With invoice generation solved, the merchant standardized what went into each packet. The structure mirrored guidance from both platforms and simplified the experience for reviewers:

• Cover summary: One page with a neutral narrative dated timeline. Stripe recommends a concise chronology and summary per its best practices.
• Invoice: AliBilling PDF for the AliExpress order, showing buyer details, line items, taxes where applicable, and the merchant’s company information.
• Proof of shipment: Carrier manifest or label plus the tracking number and a public tracking URL. PayPal accepts categorized text evidence for carrier, tracking number, and tracking URL as described in Braintree’s categories.
• Proof of delivery: Delivery confirmation showing the full delivery address and delivery date, not just city and postal code, which aligns with Stripe’s requirement for addressing Item Not Received.
• Authorization signals: AVS and CVC match data when available, session IP logs, and if used, 3DS authentication, in line with Stripe’s guidance to include proof of customer authorization.
• Customer communications: Only the relevant excerpts that show resolution attempts or acceptance of the delivered goods. Stripe advises consolidating communications into a single file for the Customer communication category in its guide.
• Terms highlights: A screenshot of the refund and return policy shown at checkout with a short callout, again following Stripe’s advice to avoid uploading entire terms and to include only relevant sections.

To make Visa CE 3.0 submissions stronger on Stripe, the team also captured device fingerprints and purchase IPs for repeat buyers. When applicable, this helped satisfy Visa CE 3.0’s requirement to match a combination of main elements like customer device or IP and secondary elements like shipping address and email across prior legitimate transactions, as set forth in Stripe’s Visa CE 3.0 documentation.

Implementation timeline and change management

Week 1 focused on configuration and training. The store owner created AliBilling profiles for staff, customized invoice fields with the company’s legal and tax information, and documented the new dispute checklist. Agents practiced retrieving old invoices from AliExpress My Orders and pairing them with tracking proofs.

Weeks 2 to 4 focused on speed. The team used a shared drive with labeled subfolders for Receipts, Shipping, Delivery, Authorization, and Customer Communication, mirroring the grouping recommended by Stripe. They also created PayPal friendly versions with evidence categorized to the Braintree schema, so agents could quickly map attachments to categories like PROOFOFDELIVERY and TRACKING_NUMBER per PayPal’s documentation.

By the end of month one, average response time dropped from a week to 36 hours. By month three, the team consistently submitted within 24 to 48 hours.

Results after 30, 60, and 90 days

• Days 1 to 30: Disputes still arrived at prior volumes, but wins improved on PayPal claims because packets met evidence categories and were filed on time. The SMB guide from PayPal reinforces why timely responses matter, noting that claims can auto close in the customer’s favor if the seller does not respond. Win rate increased from 18 percent to 36 percent.
• Days 31 to 60: The combination of fast submissions and better delivery proof pushed Item Not Received disputes down as some buyers withdrew disputes after seeing the packet, a situation Stripe describes as a possible resolution for misunderstandings. Win rate moved to 51 percent.
• Days 61 to 90: The team finalized its Visa CE 3.0 playbook for repeat customers on Stripe and improved its PayPal mapping for proof categories. Chargebacks per 1,000 orders dropped, and overall chargeback count fell 42 percent compared to the prior 90 day baseline. The dollar value of recovered revenue climbed, and dispute handling time stabilized at under 48 hours.

Importantly, customer confusion decreased. PayPal’s guidance suggests clearly indicating your company name on invoices to avoid confusion, and using accurate product photos and shipping expectations to prevent claims, as described in PayPal’s SMB article. With consistent invoices carrying the store’s brand details, fewer cardholders misrecognized the charge and went straight to their bank.

How to replicate the playbook in your store

• Standardize invoices at the source. Use AliBilling to generate a consistent invoice for every AliExpress order, new and old. Configure your entity, VAT or tax IDs, and supplier details so each PDF is client ready. If you need a walkthrough, see the step by step in How to download an AliExpress invoice.
• Build a reusable evidence template. Mirror Stripe’s structure with a chronological summary and grouped files, and align PayPal submissions to Braintree’s categories. Keep files legible and within size limits.
• Capture delivery details fully. Always include delivery date and the full shipping address on the proof of delivery. Stripe explicitly calls out the need for the full address in its best practices.
• Shorten the time to respond. Use a shared folder structure and name files consistently. Assign a primary and a backup agent to avoid deadline misses. PayPal notes that missing reply by dates can end your chance to contest a dispute in the Braintree docs.
• Track prior customer history for Visa CE 3.0. If you process on Stripe, log device or IP signals and keep a record of prior undisputed transactions. When a Visa 10.4 fraud dispute hits and your case is eligible, follow Stripe’s CE 3.0 guide to submit matching elements.

If you are just getting started with ecommerce or want to centralize your operations, running your storefront on Shopify makes it straightforward to connect payment gateways, manage orders, and implement consistent billing descriptors that reduce confusion. AliBilling is compatible with a Shopify or WooCommerce workflow because it works directly in AliExpress My Orders, regardless of your ecommerce platform.

For legal and tax readiness beyond disputes, the AliBilling blog has plain language primers. New to VAT or sales tax obligations as a dropshipper, start with Tax Obligations 101 for Dropshippers. Concerned about compliance across regions, read Dropshipping the legal way. Those articles, together with generated invoices, make year end bookkeeping and audits simpler.

What AliBilling changed for the team day to day

• One click invoices next to every AliExpress order saved 10 to 15 minutes per dispute packet and eliminated scrambling for screenshots. That speed meant disputes were rarely accepted by default due to timing.
• The store’s brand carried through to receipts and invoices, which matched the card descriptor and email receipts, helping reduce unrecognized charge disputes. PayPal advises displaying a clear business name on invoices to prevent confusion in its SMB guidance.
• Custom fields ensured that VAT or tax identification appeared correctly for cross border shipments, which eased both accounting and customs questions. AliBilling supports multiple date formats and supplier details so invoices stay consistent for regulators and accountants, detailed in the tool’s how to guide.
• Unlimited invoice generation and low fixed pricing made it cost effective to pull documentation retroactively for legacy orders during a backlog clear out. You can compare plans on the pricing page.

If you have a specific edge case or need help tailoring the invoice to your local requirements, the team at AliBilling is available around the clock. Start with the FAQs, and if you need hands on assistance, reach out via Contact us. For transparency on data use and service terms, see the Terms of Service and Privacy Policy.

Key takeaways for merchants

• Evidence wins disputes, and the invoice is the anchor for the rest of your proof. According to Stripe’s best practices, pair invoices with full address delivery confirmations, proof of authorization, and concise summaries. For PayPal, submit evidence that maps to required categories and finalize by the reply by date per Braintree’s guide.
• If you source from AliExpress, solve documentation at the source with AliBilling. One click invoices and consistent PDFs make your evidence packets faster, clearer, and more credible.
• When your store has repeat buyers, prepare for Visa CE 3.0 eligibility on Stripe by logging device, IP, and shipping data that can match to prior undisputed sales, as explained in Stripe’s Visa CE 3.0 documentation.
• Move fast. PayPal’s SMB guidance stresses timely, organized responses to avoid automatic decisions against you, which you can review in its overview of disputes and claims.

With a small amount of process work and the right tool, this store materially reduced chargebacks and recovered more revenue. If you are ready to replicate the approach, start by generating clean, branded AliExpress invoices for every order with AliBilling, then implement the structured packet model the networks want to see. Your finance team will thank you at tax time, and your dispute outcomes will reflect the change.