Manufacturer or trading company: which suits you when importing from China

When you look for a supplier in China, not everyone offering you a product actually makes it. Many are trading companies (intermediaries) that buy from factories and resell. This is not necessarily bad, but it changes the price, the control and the traceability. Knowing who you are talking to is the first step.

What each one is

• Manufacturer (factory): physically produces the product. It usually offers a better price and more control, but tends to specialise in one product family.
• Trading company: an intermediary that buys from several factories and exports. It brings variety and export management, but adds a margin and reduces control over production.

How to tell them apart

• Business scope on the licence: a factory's should include terms such as "manufacturing" or "production"; a trading company's says "trade" or "sales".
• Specialisation: a factory masters one family (for example, plastics). If they offer you everything —plastics, ceramics, textiles—, it is almost certainly an intermediary.
• Address: a factory's is in an industrial estate, not in an office tower. Check it on satellite maps.
• Export capability and invoicing: not all factories export directly; some need a third party to do it.

Which one suits you?

• Factory: large orders, custom products, or when control and price are the priority.
• Trading company: small orders, an assortment of several products, or when you need export and language issues taken care of.

A reputable trading company is not a bad option; sometimes it is the right one. The danger is paying factory prices believing you are dealing with the factory.

With R'S WARE, dealing with Chinese suppliers is easier

Knowing whether you are dealing with a manufacturer or an intermediary, and choosing well for your order, requires verification on the ground. At R'S WARE we identify who is who, get you direct access to the factory when it makes sense and negotiate on your behalf. You get the right supplier, not the one that sells best over chat.