Many customers, including foreign importers and domestic buyers, prefer to work directly with factories, believing that they can offer the lowest prices and the best quality and service. This is actually not the case, more often than not, a trading company will be a better place to work with than a factory. As a wholesaler for many years in Huaqiang North, the world’s largest electronics market, I will explain why choosing a trading company is often a better choice and how companies can benefit from working with them.

9 advantages of a trading company

1. Easier communication

Generally speaking, trading companies have a better level of English than factories. They have a better understanding of the processes and precautions associated with international trade and a better understanding of their customers’ needs. This makes communication more convenient and efficient.

If there is any problem with production, shipping or inspection, the trading company will communicate with the customer as soon as possible to ensure that the production is exactly as the customer needs. The factory needs to focus on the same batch of products, so it is difficult to follow up with the customer point by point. The progress of dealing with problems is slower.

2. Greater flexibility

Unlike manufacturers, who usually produce only a few products, trading companies usually have multiple suppliers for each product. They have a better understanding of what the difference in quality is between products from different factories, and which one has a better price. There is also more choice of styles and types. This means that companies can easily find the products they need at competitive prices, rather than having to search for different suppliers one product at a time.

Trading companies also offer greater flexibility in terms of production schedules and delivery times. Especially during out-of-stock and holiday periods, they can often find products faster and at a lower cost than manufacturers because they work with multiple suppliers. This allows companies to respond more easily to changes in demand or market conditions without fear of disruptions or delays in the supply chain.

3. Trading companies reduce risk for customers

We all know that factories produce products that are not always very much to the customer’s liking, and sometimes the quality does not meet the customer’s requirements, so they need to spend their own time and labor costs to adjust, and even if they do, they may not always be able to reach the level of customer satisfaction. At this time, the buyer will face the problem of finding a replacement, which will seriously slow down his trade process.

However, the trading company’s handling is much more flexible, generally the trading company will not cooperate with only one factory, cooperate with more factories have a high degree of selectivity, if there are problems or unsuitable, can completely change a factory, generally a factory what problems will not fatally affect the business of the trading company.

4. Lower cost

Another advantage of trading companies is that they can offer lower costs. Because they work with multiple suppliers for a long time, they usually compare prices and can find the most advantageous price. They can also pool orders from multiple buyers and purchase them together. This results in getting a more advantageous price. As for the companies themselves, there is no price advantage for the companies to go to the suppliers separately by themselves because the products are scattered.

Generally speaking, unless they are buying a large quantity of a single category of products, buyers may be able to find prices similar to those of trading companies. But even then, buyers need to spend a lot of time and multiple channels to find the right factory, which is not easy for those who are not in the local market and want to really know a factory, but trading companies can find the right factory more easily due to their geographical advantage and long experience in factory inspection.

5. Broader range of products

Trading companies offer a broader range of products than manufacturers. Because they work with multiple suppliers, they can offer a wide range of products.

Trading companies usually update their customers from time to time with the latest products and information from the global market. They can provide their customers with the latest and most popular products and sales trends, such as which products are more suitable for which markets, what is the upward cycle of the products, etc. This makes companies more knowledgeable about the product market and easier to find the products they need.

6. In-stock, quick delivery, small order quantity

Generally speaking, trading companies are more willing to serve companies of all sizes, and they all provide better service. Factories only focus on a few products, the same profit, they are more willing to supply the goods to the trading company, because the trading company more understanding of the product and customers, factories generally do not have too much patience and small customers docking too many technical problems, these, the trading company can be very patient to give customers to explain.

In addition, factories produce goods with a minimum order quantity, while trading companies generally have their own inventory. Generally MOQ small orders, factories are not willing to accept orders, scheduling production also takes time, not conducive to delivery. And the price is not cheap. But the trading company can arrange delivery at any time.

Above for small and medium-sized customers, individual entrepreneurs or sales of a variety of customers, choose trading companies have greater advantages.

7. Better control of the order cycle

The trading company can better control the delivery time of each goods, help the enterprise to better plan the product procurement plan, speed up the enterprise’s inventory turnover rate, help the enterprise to save money and reduce inventory pressure. Companies can source products quickly and efficiently, ordering what they need, when they need it, without having to stockpile inventory or pay for expensive warehousing.

8. Better, faster and more efficient service

Trading companies have rich supply chain integration capabilities, and have close relationships with many different types of factories. When there is an exception in production or delivery logistics, the trading company can always find a solution and deal with it first.

Factories are usually responsible for the production of their own orders, it is difficult to help customers to solve problems efficiently in all aspects, once there are abnormalities, the product delivery time is often delayed for a long time.

9. Provide after-sales service and support

We all know that the price is not the deciding factor of the order, many good trading companies are doing well because of good service and reputation. Trading company is actually a bridge between customers and factories, excellent trading company, can deal with the relationship between factories and customers very well. Factories often do not have the heart to spend too much energy on a small number of orders.

Trading companies usually provide more comprehensive after-sales service and support. If a customer has a problem with product quality or delivery time, a trading company is usually more proactive in resolving it. They can coordinate the handling of the problem to ensure customer satisfaction and timely resolution. These additional services and support can help companies reduce risk and lower costs later on.

Since the trading company acts as the supply chain for the company, it helps the company to save a lot of time and personnel costs in the supply chain operation, reduce the difficulty of management and save a lot of energy. Enterprises can concentrate on sales and put more effort in their own professional fields to achieve better results. To achieve a win-win situation.