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4 Reasons Why Trading Companies Are Better than Manufacturers

Most of the buyers who want to import certain products from China, they think that the factory can offer the lowest price and therefore they always want to contact the factory when purchasing the products, but this idea is sometimes not exactly true.

Sometimes trading companies have better prices and services than factories. In China, trading companies and sometimes factories are more popular, which is why the number of trading companies is several times higher than the number of factories. Big customers such as IKEA and Walmart are also supplied by various trading companies.

Trading companies offer professional and better services, and I will introduce the advantages of the following 4 reasons.

Trading Companies

1.Trading companies are easier to communicate

One of the advantages of trading companies is that they are usually easier to communicate with. Trading company employees may speak better English, and because they are not involved in manufacturing, they tend to be more customer-focused and put more effort into customer service. They also respond to customer emails in a timely manner. If there are any problems with production, shipping or inspection, the sales of a trading company are always the first to notify their customers.

Many small and medium-sized factories, on the other hand, tend to be more focused on production and working with local trading companies. In addition, most qualified salespeople prefer to work for a trading company because they get more experience working there.

2.Trading companies have a wider selection of products

For a trading company, it will not sell only one factory’s products, but will choose many factories to form a category or multiple products for sale, so that the combination of sales, for the purchaser customer, there are many choices, and will not be limited to one factory a product above. Even if it is just one product, the trading company can provide different designs, quality and packaging according to the customer’s requirements. Whereas factories usually focus on one product, which leads to a big limitation that they can’t provide you with multiple choices.

For example, sourcing various fabrics, cotton, linen, silk, wool, chiffon, woven, knitted, etc. But if your factory can only provide cotton, he will have to go all the way to another factory to buy it. And the trading company can just provide one-stop service.

3.Trading companies have a smaller minimum order quantity

Trading companies often have small minimum order quantities, but they are also able to serve small and large companies well. Even with small orders, quality is strictly controlled. For importers, a trading company may be a better choice because they already order large quantities from their factories and may offer you a lower minimum order quantity. They can also offer you a wider variety of products so you can mix and match your orders.

Factories have much higher minimum order quantities and for smaller orders they prefer to take them from a trading company, which saves time in complex communications with foreign customers. They only need to deliver the goods to the trading company, which usually places the order with them.

4.It is safer to work with trading companies

Trading companies have the right to import and export on their own and have a complete and professional operation process. The cooperation between customers and foreign trade companies can be more stable and guaranteed. Trading companies choose their suppliers carefully. They tend to choose stable factories with good production quality so that they can have long-term cooperation.

If a customer has questions about the quality of the product, the trading company will be ready to help, and if necessary, they will make sure you get a refund for the part from the factory. Since it is the trading company that brings business to the factory, the factory must meet the former’s requirements.
If you don’t normally buy in bulk from the factory, they will not be as quick to help as a trading company when quality problems arise.

5.Tips for people who prefer to buy from factories

  • You focus on only one product type and you need products from only one supplier.
  • 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.
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