Lots of importers prefer to buy products directly from manufacturers in China, which can offer a range of benefits, from lower prices to better quality control. They always wonder how to find a manufacturer to make their products. But it is not easy to find a real factory and sometimes you may not need a factory.
After reading today’s blog, you’ll know why I say this.
Is it possible to buy directly from the manufacturer in China?
Yes, it is possible to buy directly from manufacturers in China. Importers can typically find factories on Chinese wholesale websites like Alibaba, Made-in-China, etc. However, finding a real factory is not easy for start-ups or importers without international trade experience.
Although there are many suppliers on these websites, over 90% of them are actually trading companies and not real factories.
On one hand, some products have very little market demand, so there are also few manufacturers. On the other hand, factories place more emphasis on production rather than marketing, and most are small factories, making them difficult to find.
Another situation is that the factory did not publish information on the English website. The target customers of these factories are Chinese trading companies, so they mostly publish their information on Chinese websites such as 1688. These are all the reasons why it is difficult for you to find a real one.
Is it cheaper to buy directly from the manufacturer?
When your MOQ is large, buying directly from the manufacturer is often cheaper because it avoids middlemen markups.
Sometimes, a trading company offers cheaper prices than factories. This happens:
Trading companies with many years of industry experience can often get lower prices than you would receive directly from newer small factories. Because they usually collaborate with well-established manufacturers who can produce the same products with the same materials at a lower cost compared to newer small factories. Even after adding a bit of profit, the prices from these trading companies are still more competitive.
Some small trading companies pass on savings from tax rebates to customers, which factories might not do. That’s because their operating costs are higher due to labor and equipment expenses. While a trading company might offer discounts on one order, they can make up for it with higher margins on another one.
Manufacturer vs. trading company: when to choose?
Most people who want to import products from China always hope to find real factories rather than any middlemen or trading companies, which is not always correct. In fact, it is up to your business scale and the actual situation.
If you only focus on one product type with a large order, I recommend you buy it direct from a factory. Factories not only have more competitive prices, but they usually only focus on one product and are very proficient in this industry. They are more capable with your products.
If you are a small business with a small order, it is better to choose a trading company. Because factories usually require higher MOQs. In addition, trading companies have other advantages, such as more product choices. This means that when you need to source various products, you can place orders with the same trading company, which is more convenient.
For example, the following is a typical trading company where you can buy multiple products such as fishing kits, fishing floats, carp fishing, fishing lights, etc.
JingSourcing can help you buy direct from factories.
If you are a novice in e-commerce or lack import experience, and you do not know how to choose or think this process is time-consuming and laborious, I strongly recommend that you find a reliable sourcing company like JingSourcing to help you. We provide a variety of services and have many advantages.
Rich and reliable supplier resources
We are located in Yiwu, the largest wholesale market in China. There are many factories around us, and we also integrate supplier resources all over China, many of which you cannot find on wholesale websites. In addition, these suppliers are usually located in industrial clusters with many years of experience, and their prices are very competitive. They have all passed our strict factory audit, so you don’t have to worry about being deceived.
You just need to tell us the products you want to buy and the quantity. Based on your needs, we will find suitable suppliers to help you make samples first, and collect these samples all together so that you can compare them together. After balancing the quality and price, you can decide on a suitable one to work with.
Available lower MOQ
If your order quantity does not meet the supplier’s requirements, for example, their MOQ is 1000, but you only want to import 800 pieces to test the market, you may be rejected. But we can help you communicate with suppliers. Because we have cooperated many times and have a good relationship with them. Even if the MOQ is small, they are willing to produce for us.
Rich experience in customization
We have over 20 years of experience in custom packaging and existing products, plus new product development. For your complex project, we will try our best to work out a feasible solution and save your costs.
Here is a real case from our South African client Mazin. He gave us a 3D design drawing and wanted to develop a mosquito net with a fan. Based on his design, many parts needed new molds. The total molding cost was up to $50,000, but the client only wanted 200 pieces, so the average price per mold was $250. This was a big expense.
Our experienced agent came up with a solution. He found all the readily available components from lots of factories and assembled them together to achieve the same function. This method saved a lot of money without making any new molds.
Complete supply chain management
We can follow up on the production and do quality inspections to ensure that the products meet your requirements and standards. We can also assist you in handling customs clearance and selecting the best shipping method. With our supply chain services, all steps are handled efficiently and properly, so you do not worry about anything when you source from China.
More questions highly concerned by our clients
What are the benefits of buying directly from the manufacturer?
Buying directly from the manufacturer has several advantages: it can lead to great cost savings by eliminating middlemen, allowing for more competitive pricing and greater profit margins, and providing early access to the latest products and innovations.
Which manufacturers sell directly to consumers?
Usually, only large manufacturers with stable order volumes can sell directly to consumers, like Xiaomi, and Tesla, etc. Smaller factories typically don’t do this and instead work with wholesalers, trading companies, or sourcing agents.
