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As you could never avoid the truth, the Trading Companies and Manufacturers each account for 50% of the market. You have to make a choice between them when you do business, especially International Business-Exporting and Importing.

Most of the time, it’s best to work with Manufacturers, as you wanna pursue profit maximization. The factories show you the lower and more competitive price. However, you will find sometimes it is so hard to get results and other products you want. Well, now you probably need a Trading Company to meet all your requirements. He could not only get the requisite for your business but also supply you with all accessories and some soft service. But you have to pay a higher cost to them.

So which one should be the right choice for us? Let’s discuss more details here.

What is the Trading Company?

A Trading Company is more like a similar distributor and wholesaler in the west or you could say a middleman, but not all the same. It never produces and assembles any products itself. It works with multiple factories to sell their goods with their own services. Yes, these services are the benefits they get from. And another way is he offers you various products, all your demands could get only through it.

Yes, he offers you higher prices than those manufacturers’. That is the Trading Companies’ imperfect side. But a wonderful Trading Company would help you to solve all the problems. He helps you to do the outgoing inspection and quality control. Help you to look for some unusual gadgets and accessories. And help you do the new design work. You really save a lot of time and experience.

What are the advantages of it?

1. Solve the Barrier of Regional disparity

A Trading Company should become an important part of your business, even become your partner. He clearly understands the local culture and customs, especially their business model. So he is just like a great bridge across the Ocean. Bring you the best Honey and Winne.

2. Factory verification

A good Trading Company has built a great and long term relationship with multi-manufacturers. As he is in the middle part between you and the factories. He has to be certain the factories make all goods in the best condition to please you and your consumers, then they could keep the snowball rolling. He is able to make sure the quality of finished goods and he goes to the factory for outgoing inspection and production process checking.

3. Flexible

As A good Trading Compay could handle many unexpected and urgent conditions. He is so flexible to arrange all the stuffs, purchasing your small items and getting a special package and special labeling. Or you need some new ideas to put on your products. He could do all of them. And most importand thing is you could think him like a Transfer station.

4. Tailored

Most businessmen would think they are supposed to work with manufacturers for their Tailored Prosucts. However, that is kind of unfortunate. It is not completely right nowadays. Why is that and why could we say this? This outcome we got after visiting more than 100 factories. This is so unbelievable why the manufacturers are unwilling to improve and innovate. However the Trading Companise would do this, he has many good relationships with various Factories. Even this Trading company boss is good at doing this. Furthermore, Tailored Products are the value of the Trading Company existence. After all, he has to go the extra mile.

5. More effective execution

The Trading Company has more effective execution when he communicates your product requirements and expectations to the Factory Principal. He could handle many things in International Trade. Dealing with factories, design companies, forwarders and shipping companies every day, he has to make everything quickly and correctly. Then get all people satisfied and keep the business rolling bigger and bigger.

What is the Manufacturer?

The Manufacturer, you would know if we call the Factory.

A factory, manufacturing plant or a production plant is an industrial site, often a complex consisting of several buildings filled with machinery, where workers manufacture items or operate machines which process each item into another. They are a critical part of modern economic production, with the majority of the world’s goods being created or processed within factories. (This definition From ウィキペディア)

It makes everything by hiring a lot of skilled workers and using a lot of machines and equipment.

Unfortunately, one factory could not make all products, only one particular product type or the related. That’s why you could not get all you needed sometimes.

Most of the time you have to place an order with bigger minimum order quantities (MOQ) by Manufacturers requested. And you will get lower with your order quantity increasing.

What are the advantages of it?

1. Low price cost

The major advantage, most time manufacturers quote you lower and attractive prices, especially with your quantity increasing and building a long-term business relationship with them. You could ask for a discount each year. Because the products are being lower cost with more stable and more skillful producing process. But if you only have small quantity orders, that price is still high, everyone knows this. So do not waste much time negotiating as time is money too.

2. Direct Communication

You may find them directly when the problems occur. Talking to them about your ideas and what you want exactly. You may directly follow this mess and control all things until it is done well. Then you could get a good sleep at night.

3. Profession

There is just one type of product or the relevant made by one manufacturer, so there is no doubt that we believe in the factories’ profession and expertise. The manufacturer must contain a lot of equipment and machines and skilled workers to ensure your goods are in the best condition. And the great factories are with a couple of Engineers, Quality Inspection departments. This is so perfect.

4. Control of production schedule and process

You may know about your production plan directly from manufacturers in order to prepare for the next step with the changeable market. That is also important to businessmen to make a decision.

5. Strict quality control

We all need to ensure the products we receive are best quality and absolutely perfect. However, first of all, you have to ensure the raw materials for your goods. The good manufacturers have a professional Quality control department. This department not only checks before(the Raw materials), but also processing and after. So you absolutely have to believe in them.

Do you need a Trading Company or Manufacturer?

Only work with factories, I always hear this. Sure, it is. Most business men are thinking. But actually with time being, the line between Trading Companies and Manufacturers is becoming blurring. They both purchase and sell. For example, thinking of a mobile phone factory, it could never produce all the parts. He also has to procure things such as chips, shells, screws and other gadgets from another factories, then put them all together. And factories also find similar plants for outsourcing during busy days. Anyway, they finally finished your job.

If you just need simple, particular and massive products, please just look for a good Manufacturer. You will easily get your demands with satisfied cost and nice quality. Working with a factory, the most important thing is to understand what exact parts of product the factory actually makes. Unfortunately, there are no the best and perfect goods are cheap at all nowadays. You should understand.

A Trading Company is often more expensive, but a good one has added more additional value, such as sourcing, quality inspection, customer service, and so on. They always step one more mile to win a big market. However, some trading companies have no those, just buy and resell. That is kind of disappointing.

There is no the wrong and right answer, just depends on what you really demand. And now the trading and manufacturing companies complement each other. They are working together closely to create more values for consumers all over the world.

Ultimately, no matter which one you choose to cooperate with, just meet all your requirements.