The precipitation of gift and send out strength
Brighten up your life whilst shining a light on your brand; Knowledge of gifts and hotel supplies; Easy work, fun gift life space.
By Charles | 28 May 2022 | 0 Comments

Some International Buyers, Why Choose a Trading Company Instead of a Factory?

Trading companies do not make goods or own them. They act as intermediaries between the manufacturers and the importers who want to buy their products. Then the question arises why anyone would want to buy through a trading company when they can cut out the middleman? Why not save money by going factory direct? It is quite easy to find a factory online. So if going factory direct is the best option, why are there still so many trading companies out there in the market? What advantages do they have that attract international buyers to place orders? The answer is trading companies can add their own value to make the relationship worthwhile. Trading companies can avoid setbacks when importing because they know the market well and they can eliminate the possibility of doing business with dishonest manufacturers or who make low-quality products. Working with the trading company offers a number of advantages that attracts the international buyers to choose them, some of which are
Offer a Variety of Products
One of the main benefits of buying through trading companies is that they offer a huge variety of products on request as compared to factories or manufacturers. Trading companies are willing to send international buyers samples of additional products because they are connected with multiple factories. After sampling and comparing their previous experience with these products, the buyer can source even more products from these companies. This will help to decide the reliability and trustworthiness factor of the buyer’s chosen trading company. The trading companies also facilitate communication between the factory and the buyer and make sure that the trade between the two parties is as smooth as possible. 
Offer One Product with Different Qualities
Factories usually specialize in one product, which leads to great limitations; they cannot offer international buyers many choices. But on the other hand trading companies offer one product of different qualities according to buyer request. Trading Companies offer diversified products to meet the diverse needs of buyers. This is only possible due to their longstanding relationship with the different factories they purchase from. Trading companies routinely place enormous orders with their factories, with the promise of more business to come.  
They are Perfect Mediators
Trading companies work as effective mediators between the factories and the buyers. They have to maintain a healthy working relationship with the factories and their international buyers. If a buyer has an issue with the quality of the products, the trading company will be readily available and willing to help, and if necessary they will ensure that buyers get what quality they agreed on. Because it is the trading company that brings business to the factory, so factory has to satisfy their request.
Superior Level of Technical knowledge
Trading companies offer international buyers a far superior level of technical knowledge of the products they offer. International buyers often assume that individual factories certainly have people on staff with intimate knowledge of the products they manufacture. But the reality is mostly factories may rely on simple trial and error to get things right. These days trading companies have full in-house engineering, design, and prototyping department which enable them to trace the cause of the defect through the manufacturing process and offer solutions to get over it.
Optimize Purchasing Process and Reduces Costs
Purchasing the best products at the best price is essential for every business. Buyers usually presume contacting the factories directly is always the right choice, but that’s not true. This process of finding the best factory and negotiating for the best price demands time and effort. Trading companies optimize your time by enabling you to concentrate all your demands on just one company. No matter if the demand is for 1 or 500 items, trading companies receive your quotation and will do all the work to seek the best offer from international manufacturers and offer you the best commercial proposal.
Improves Communication and Negotiation
Negotiating with manufacturers or suppliers can be a difficult process, especially when the language and culture of the place where the manufacturer is located are different. Trading companies perfectly understand what international buyers want. Their emphasis is laid more on the buyers and their preferences. Trading companies have multicultural and experienced professionals who are able to negotiate in several languages. Another differential of these professionals is the high level of relationship with the manufacturers who are negotiating, guaranteeing the best prices and market conditions.

Why do some gift buyers and hotel supplies buyers choose trading companies instead of factories
Cost-Effective Logistics through Freight Consolidation
Trading companies offer lower logistical costs by consolidating and optimizing cargo transportation and storage. Consolidation reduces freight spend by splitting the cost of a load among several shipments. The reception and consolidation of loads by a trading company guarantees total security in the process since all items are carefully checked in order to guarantee that, when they are exported, they are exactly the items needed by the client. Besides all this security, it also allows a significant reduction of logistic costs through the reduction of international freight and customs costs.
Effective Customer Service
Trading Companies work with the factory to prepare the buyers’ order properly, making their profit by imposing a percentage of the order on. Therefore, these trading companies also personally go and check the factory’s capability to provide the order. The bottom line is that they make sure that their customer service is as seamless as possible.
Reduce Risks for International Buyers
The trading company offers a range of services that provide greater security in the import process, such as inspection, international insurance, and freight with trusted companies known in the market. They tend to choose stable factories that produce good quality goods so that they can enter into a long-term cooperation. If a customer has an issue with the quality of the product, they can easily change the manufacturer for the requisite quality.
The Best Option
Most international buyers seem to hold onto the common misconception that it’s always better to go factory direct. Buying from factories has various other troubles such as quality issues and late delivery. Trading companies offer professional and better service compared to factory direct. There are lots of other kinds of services that trading companies may be able to offer to generate added value. Rather than communicating and doing business directly, both sides should operate through a trading company because it is easier, more convenient, and ideally cheaper than communicating directly.

Leave a Reply

Your email address will not be published.Required fields are marked. *
Verification code