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4 ways to tell a trading company from a factory

2021-04-01 18:03:19

Do you like to import through a trading business or work straight with a factory to produce your items?

What is a trading business? A trading business-- in some cases called a vendor-- works as an agent connecting buyers and sellers without having any participation in the ownership or production of the product offered.

However, FBT hair tools is a genuine maker for hair flat irons, hair curling irons, hair clothes dryers and hot air brushes.

So if there is a way of distinguishing a trading company from a factory at first look? The truth is, it can be challenging to be 100 percent sure. You can get a pretty excellent concept by using these 4 signs of a trading business in order to identify from one or the other.


Does the company offer a number of lines of items that require various manufacturing procedures? State there is a business called "Hair tools Product Manufacturing Company." If this business also sell gloves, facial beauty machines and makeup bags, then they are most likely not a manufacturing business.

Manufacturers in China, in most cases, will focus extremely particularly on one product type or production procedure. This is because of the high cost of machinery required to produce various kinds of elements. For that reason, a company that makes hair tools will normally not make facial charm devices and makeup bags, considering that those products involve totally different production procedures.


Trading business tends to have a lot more marketable and smart company names than real manufacturers. The factor for that is their service is trying to acquire customers from overseas, whereas producers are generally concentrated on making products. Trading companies need to be more consumer-friendly in order to bring in a bigger client base.

Manufacturers also normally have the name of the city or town they lie in within their company name. For example, a business that makes rulers or cups in Dongguan could be called "Dongguan Plastic Products Company". A name like this doesn't sound extremely appealing to foreign purchasers, does it? A trading business, on the other hand, will typically have a catchier name like "Home Products Manufacturing Company", in order to pass off as a manufacturer. A factory would hardly ever have a name like that in China.


Where is the company located? Put their address into Google Maps and see if they are located in the middle of Hong Kong, Shanghai, Shenzhen or another densely-populated urban area. If they're located in a downtown location, possibilities are that is not the manufacturing location.

That doesn't always suggest they are not the real manufacturing company - some big factories do have sales workplaces based in the city. But frequently a little investigation into the real production location reveals that the workplace is not connected to the company that is producing the goods.


If so, it is very likely you are looking at a trading company. Unless it is a substantial and widely known producer, the business website is usually the greatest indication.

This is specifically true of Chinese trading business. Even a few of the largest factories in China have very basic websites, with extremely little English and a poor design. Having an enticing website merely isn't a high concern for many factories. The lack of decent advertising efforts originating from Chinese factories themselves becomes part of the reason that trading companies have taken hold in China.


Trading companies offer consumers with a large array of choices in order to buy budget friendly goods abroad. Next time you discover yourself having problem separating between a producer and a trading company, ask yourself:

- Do they offer more than one kind of product?

- Does the name noise generic or catchy?

- Where are they found?

- Is their website unusually user-friendly?

Next time when you visit our factory in China, try to find these four indications and you will know how exactly they are.

A trading business-- in some cases called a vendor-- works as a representative linking purchasers and sellers without having any involvement in the ownership or production of the product sold. If this business offers gloves, facial charm devices and makeup bags then they are probably not a making company.

Trading business tend to have much more marketable and smart business names than real makers. A company that makes rulers or cups in Dongguan could be called "Dongguan Plastic Products Company". A trading business, on the other hand, will frequently have a catchier name like "Home Products Manufacturing Company", in order to pass off as a producer.