Without further ado, suppliers play an essential role in business development. When it comes to sourcing from China, many people wrap their heads around trade fairs especially Canton Fair to source suppliers that fabricate the products rather than intermediaries. In case you don’t know who are you dealing with in China, here are some tips to differentiate trading companies from manufacturers.
1. Product Range. Trading companies usually have a diversity of products while manufacturers can only make limited products.
2. Chinese Website. Trading companies usually do not have Chinese website but professional English websites.
3. Hongkong Company. Trading companies usually register Hongkong companies to better receive foreign currencies.
4. Engineering Staff. Trading companies usually do not have professional engineering staff, instead, they have good English-speaking sales representatives.
5. Recruitment Information. Trading companies usually recruit international sales while factories would be looking for workers, engineers, etc.
6. Address. Trading companies usually have address with room numbers instead of factory address.
7. Visit. Trading companies are usually afraid of factory visit.
How to tell the factory they take you to belong to them or not?
*Check whether the name of the factory is the same with the company.
*Come on your own at another time and check whether the factory still has the same name.
*If they need to make several calls to open a room in the factory.
*Pay attention to how people take you to the factory address people in the factory, words like “ni men(you)”, “wo men(us)”, and whether they are familiar with the factory.
*They are afraid that you stay alone with people from the factory or exchange contacts.
Of course there are some advantages buying from trading companies than buying directly from factories.
1. Better expertise of products
2. Better sales service
3. Small MOQ and sometimes better price
However, it is always good to know whether you are dealing with trading companies or factories before going into the deal.