Most people who want to import certain products from china will always say “I want to find the factory” because they think factories offer the lowest price. This is not always true. Sometimes, a trading company offers cheaper prices than factories. Buying from factories also has various other troubles such as quality issues and late delivery.
In China, trading companies are sometimes more popular than factories, that’s why the number of trading companies is times more than that of factories. IKEA, Walmart, and other large customers are also supplied by various trading companies. Li & Fund Ltd, a well-known Hong Kong Company is one of the most successful trading companies and serves countless international groups in different industries.
Trading companies offer professional and better service, and I’m going to introduce its advantages in following 4 reasons.
1. Trading Companies Are Easier to Communicate with
Sales from trading companies tend to have higher and better English understanding and communication level as compared to those of factories. Thus, they won’t get problems in communicating with customers. They also reply to customer’s emails in time. If there is any problem in production, shipping, or inspection, the trading company’s sales always notify their clients at the first time.
Many middle or small-scale factories tend to put more emphasis on production, and cooperation with local trading companies. Those factories may also have foreign trade sales, but they are not good at communicating in English and are usually slow to reply to customer’s emails (Chinese mostly use Wechat and phones for daily contacts and rarely use email). In addition, most qualified sales prefer working at trading companies because that’s where they get more working experience.
For instance, our factory supplier for kid toy helmets is the best among the suppliers of this product in China. Although they also have foreign trade sales, they spend over 90% of their time dealing with trading companies. Thus replies to inquiries at Alibaba may take two to three days, and others don’t even get replied.
2.Trading Companies Have More Product Choices
Every single product supplied by a trading company usually gets many factory suppliers, thus there are more designs and types. Even for just one item, the trading companies may offer products of different qualities according to customers’ requests.
Factories usually specialize in one product, which leads to great limitation, they cannot offer you many choices.
For instance, if you do cup business and you choose a trading company, you will get the choices of materials such as stainless steel, plastic, and glass, or cups suit for kids, sport, teens, etc. If you choose a factory, you will have to contact 5 to 10 of them because you will be getting only one choice from each.
3.Trading Companies Have Smaller MOQ
MOQ refers to the minimum order quantity. The MOQ of trading companies is usually small, but they are also able to serve well both small and large businesses. Even for small orders, quality is strictly controlled.
The MOQ of factories is much higher, so they prefer customers who can place large orders such as one container for just one single item. For small orders, they prefer taking them from trading companies，so that can save the time of complicated communication with foreign customers. They can just deliver goods to trading companies, which usually place orders to them.
4.Trading Companies Are Safer to Cooperate with
Trading companies choose their suppliers carefully. They tend to choose stable factories that produce good quality goods so that they can enter into long-term cooperation.
If a customer has an issue with the quality of the product, the trading company will be readily available and willing to help, and if necessary they will ensure that you get a part refund from factories. Because it is the trading company that brings business to the factory, so factory has to satisfy the request of the former.
If you don’t usually buy large quantities from factories, when quality issues arise they will not readily help the way a trading company does.
5. The following tips may be helpful for those who prefer buying from factories
- You specialize in just one product type and you just need that from one supplier.
- You are familiar with factories based in the local or some other cities and you can easily find them. Because finding factories is sometimes challenging even for native Chinese. You better focus on the selection of the various products that trading companies offer instead of spending too much precious time finding factories.
We are a startup trading company our main product is leather item and handicraft. How do find international buyers for goods to export and get into contacting potential buyers online?
Hi Ahmed, you can try to sell your goods on a suitable wholesale online platform. See our article https://jingsourcing.com/6-chinese-wholesale-websites/ and find a right one.
Hi, i fined trade jewellery trade company
Hi Lia, if you need our help, then you can contact us at https://jingsourcing.com/submit-ticket/ to discuss and start!
Just google this, sue a chinese trading company in usa. just google this, sue chinese company in usa
Hi, i wanted to start my bag and shoes business but mostly i find in alibaba has high moq and i cannot afford that since i am just starting and also i wanted to have my own label. Others they are offering low price but very high shipping and others high price for items but low shipping and with that i am confused which is real since my order quantity and the items are just the same. Can you help me find suppliers? Thanks
How can I find a good trading company supplying beauty & hair salon furniture, equipments & accessories in small quantities
I am looking for good tubular mesh bags PE in a good price . But I am svared ti order in start 1container ,I would like to order less then container.
If alibaba.com is not the best place where search sellers.
Where I can else find mesh bag sellers from China.
For Tubular mesh bag, there will be plenty suppliers in Alibaba.com, and I think there will be no other place to source the supplier other than Alibaba for this item. Most suppliers on Alibaba for this item will be trading companies, because most factories of this item are targeting the domestic market in China. Anyway you are worthy to try to find some suppliers on Alibaba, and my colleague will also help you look for the factory, and reply you quote from factory. It’s totally free service.
I dont believe that buying goods from Trading company is more safer,cheaper fastest and small MOG. its all big Bullshit. I am still staying in China for 14 years and dealing 90 % from Factories. Factories give you better price, bettter quality, better packing and also small MOG and if there is any problem in quality they even pay you the claims ans NOT like TRADSING Companies which are mostly Thieves and NOT Sincere. Buyers if want to buy goods from China Should buy through an Agent who would be responsible for the goods as the Agent will throughly Inspect… Read more »
Vicky, please can you email me details of agents who can source replica watches from Noob, VS, Zf and so on?
Is there any trading company which is opened by foreigners who lives in China?
Sure there are lots foreigners running their own trading companies in China, most in Shenzhen, Guangzhou, Shanghai and Yiwu. However it’s not likely to find them on Alibaba.com, because they are doing quite different business from Chinese trading companies do.
Most Chinese trading companies selling products to customers from any countries, as more as possible. But foreigners own trading companies in China are buying products here, and they work more like a procurement department. Usually they have stable customers already.
I’m just wondering whether the trading company can offer less MOQ than factory if I want products with my own label and logo?
Hi. It’s an interesting question. Let’s say towel factory has MOQ 50k to print your logo, but you only need 10k. 1. Trading company will use tag or opp bag with your logo, which can easily get from packaging suppliers as less as 2-3k, and ask factory or some workers to add the tag/packaging. However factory wont spend time for your solution. 2. when trading company get your 10k order, maybe they have 30k/40k order of other customers at same time, then you will get 50k price for just ordering 10k towels. However factory probably offer you very high price,… Read more »
We are a factory ,we also supplier 3 kind of products : Plastic 3d red cyan glasses , Circular polarized 3d glasses , Mobile Phone 3d glasses ,Mobile Phone Screen Magnifier
Most time I don’t even know I’m dealing with a trading company or factory, how can I distinguish them?
I am running a trading co., and supplying different kind of industrial material to my clients from Europe. Now I wish to find some supplier from China e.g. raw material,equipments, copper, sheets etc etc main is tendering and supply by l.c. basis. If any one is interested please contact. L9lol
Hi Abdul, thanks for the comment, our support will contact you and get you an agent for you to help you find reliable suppliers in China. Please check your email.
If you are searching suppliers on Alibaba, it really very difficult to distinguish whether they are trading companies or factories.Almost every supplier put many factory pictures on their website and say they are factories, but do not believe them easily as it’s very easy to search these pictures on internet then put them on Alibaba. The best way is come to China and have a visit, then you will know the truth. But since not everyone can do this, I suggest you to check in following aspects: 1. trading company has more kinds of products, much more than factory as… Read more »