China Sourcing Guide

Reasons Why Trading Companies Are Better than Manufacturers

We all know that if customers purchase directly from the factory, the price will be lower than purchasing through trading companies, but why do many customers prefer to spend a higher price to choose to purchase from trading companies? The main points are as follows.

Easier communication

A good trading company can handle the relationship between factory and customer well, can provide more timely service. If there are any problems with production, shipping or inspection, the trading company’s sales are always the first to inform their customers. Foreign trade companies in the language talent pool should have more advantages than factories, foreign trade companies of small language talents to meet the needs of small language customers, factories can sometimes only provide English services.

More Product Options

Trading companies have a diversity of products and a wide enough supply chain. Their advantage is that they can integrate the advantages of domestic factories to the maximum extent to achieve the multiple needs of customers. But factories can’t. Factories have relatively single products, only a single product produced by the factory. If a customer needs multiple products, sometimes it is difficult to get them all from one factory.

For example, if you are in the mug business and you choose a trading company, you will get a selection of materials such as stainless steel, plastic, glass, or mugs for children, sports, teens, etc. If you choose to order from a factory, then in order to find the various types of products you need, you will need to go and communicate with multiple factories, which is a big time cost.

Smaller minimum order quantity

The minimum order quantity is the minimum order quantity. Trading companies usually have very small minimum order quantities, but they can also serve both small and large companies well. Even for small orders, the trading company will strictly control the quality of the products.

Factories have much higher minimum quantities, so they prefer customers who can place large orders, for example a container of one item. For small orders, they prefer to use a trading company to save time on complicated communication with foreign customers. They simply deliver the goods to the trading company that normally places the order with them.

Safer collaboration with Trading Companies

The factory guarantees the quality of the product, while the trading company has to ensure that the customer can get the goods on time and also satisfactorily. Trading companies choose their suppliers carefully. They strive to choose stable factories that produce good quality so they can work together in the long term.

If a customer has a question about the quality of a product, the trading company will be ready to help and, if necessary, ensure that you get a refund for the factory part. Since the trading company is what attracts the factory’s business, the factory must meet the trading company’s requirements.

If you do not normally buy in bulk from the factory, it will not help you as quickly as a trading company when quality issues arise.

Tips for those who prefer to buy from the factory

  1. You focus on only one product type and you need products from only one supplier.
  2. You are familiar with factories in your local area or other cities, and you can find them easily. Because finding factories can sometimes be a challenge even for a native Chinese. You are better off focusing on selecting the various products offered by your trading company rather than spending too much of your valuable time searching for factories.

Ningbo Greentime Imp & Exp Co., Ltd  is one of the top ten trading companies in China and has been committed to providing the best price and quality to all customers around the world for 20 years. We can provide all services required for importing from China, such as procurement, guidance, translation, procurement, quality control and inspection, customs declaration, transportation, etc. we would like to be your trustworthy partner in China.

yao, jiahui

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