Come to China purchase, is to choose trader or look for processing plant directly? Many people think that customers should be more inclined to find the factory directly supply, so as to get the lowest price, in case if there is a problem, the factory as a production manufacturer is better able to deal with the problem than the trading company. Therefore, they think that this form of trade without intermediate links should be more welcomed by customers, and that there is no need to cooperate with trading companies. So where is the living space for trading companies? Why can a trading company with a small team receive a large order? What advantages attract customers to place orders? This article will give a brief introduction to the reasons for this. Dear foreign customers and buyers, please read this article before you decide where to buy it.

As a customer, why choose a trading company instead of a factory?

In the course of trade, price is indeed an important factor, but not all. While many purchasers control prices, there are many other things to consider, and sometimes time costs take precedence over prices. The reasons why they choose to purchase from trading companies are summarized as follows:

1. A wider variety of products

For trading companies, they will not only sell products from one factory, but will choose many factories to form one or more product lines for sale, even the same product will choose many factories, a variety of specifications, combined for sale. For example, a foreign buyer needs welding parts, machining parts, sheet metal parts, stamping parts, steel materials and so on, but if your factory only makes welded structural parts, then the machined parts have to be purchased from other factories, think about the time, manpower and communication costs involved are not low, it can offset the difference in the price earned by the trading company. If they do not deal with intermediary trading companies, foreign buyers will have to go to China by themselves, and send different people to different places and different factories to deal with, so as to meet their own procurement needs. This is far from a cost-effective way to work with a trading company that can provide you with a full range of products.

2. Professional capability

In modern society, the division of labor is becoming more and more meticulous. Understanding products does not necessarily mean understanding trade business. Now many factories also like to participate in various exhibitions and sell on various websites. It seems that they can do the sale without the need of a trading company. There is a misunderstanding among them, a factory that understands products does not mean that it understands sales. For example, to communicate with customers is a big problem, if you are not a professional salesperson, you have a great defect in language communication. Many foreigners whose English are good either, they may also use poor English to communicate with you, which communication must be difficult. Trade companies have a professional team, not only in terms of service attitude, familiarity with the market, the process of trading, but also in terms of foreign language professionalism, which will be far better than the personnel of the factory, but also far better than the factory itself. 

3. Trading companies can reduce risks for customers

The products produced by the factory do not always meet the requirements of customers. Sometimes, the specifications and quality cannot meet the requirements of customers. Even if the factory takes the time and labor costs to deal with, it may not be able to achieve customer satisfaction in a very short time. However, trading companies should be much more flexible in handling such incidents. Trading companies will not only cooperate with one factory, but also have many alternative cooperative manufacturers. If there is any problem, you can immediately change to another factory, so that even if there is any uncontrollable problem in one of the supply factories, it will not affect the completion of the entire order. Also, the factory will not become the buyer's agent, but the trading company can. Purchasers can find any kind of products and factories in China through trading companies, which is equivalent to having an office in China. Long-term cooperation is both convenient and labor-saving.

4. Professionalism in trade process

In the course of trade, besides price, what else do purchasing customers value? Professional service! This service does not mean to be enthusiastic, generous and at home, but to be able to complete the trade professionally. A professional trading company will make the buyer feel very smooth to cooperate. The professionalism of trading companies is reflected in the trade links. Excellent trading companies can well coordinate the relationship between factories and customers. For example, the factory only arranges the production plan according to the order, but if the customer is in urgent need of a certain order, if the production arrangement cannot come, it will directly catch blind. But the trading company will not appear such problem basically, and trading company cooperation more than one factory, can calmly arrange the production plan of goods. For customers who often cooperate with each other, we will ask the factory to arrange production of some goods in advance, in case the customer is in urgent need of some emergency spot goods, and transfer part of the risk to the trading company itself, so as to maintain a long-term customer. For another example, sometimes new sources of goods need to be developed. Trading companies can take customers to look for factories one by one until they are satisfied, but the factories cannot adjust the production lines for customers at any time. Therefore, a professional trading company is win-win for both customers and factories.

5. Trading companies have fast delivery times and low entry thresholds

The trading company is not the sales department of the factory, but an independent trading institution, which often has its own storage and other facilities. After getting the goods from the factory, they will be stored in the warehouse for slow digestion. Many customers can find spot goods in trading companies, but factories may not have. The factory usually arranges the production plan according to the customer's order, instead of producing the goods and waiting for the customer to buy. For many customers, they need ready-made products or quick delivery, instead of waiting for the factory's slow production, time is money and profit for them. There are also some customers, they want each product order quantity is not large, and a wide variety of products, so often this kind of order dose not interest factory. If the order is too small, the factory may think that the production schedule and transportation costs are too high, which is not cost-effective, so the talks often fail to reach an agreement. Therefore, the best choice for such customers is to cooperate with trading companies. After all, trading companies deal with more than one product, often two or even more than a dozen products for customers to choose together. Although the number of a single order is less, but the total number of orders is more, they can still make money.

6. Manufacturers cannot fully grasp the channels

Although B2B websites are becoming more and more developed, e-commerce is becoming more and more normal, and communication can be completed online, the transaction of goods will eventually be on the ground. The manufacturer has no way or necessity to master the resources such as warehouse, logistics, customs clearance and so on. It must rely on the power of trading companies. Similarly, the factory facilities, equipment, management and so on are not available to traders. After all, factories and traders are complementary rather than competitive relations. The relationship between traders and factories is always one of love and interdependence, each with its own value.

7. Customers also pay attention to personal feelings

Not all customers are purely interest relations, many are emotional factors. For trading companies, some of their customers are introduced to them by old customers. Due to their professional service and strong ability to deal with problems, customers think this trading company is very good and will introduce it to their friends in the same industry. With a sense of trust between friends, things will be easier. Some buyers who have long-term cooperative relations with trading companies do not like to find factories directly even if they know factories. They still need to operate through trading companies.