Why some buyers are willing to cooperate with trading companies?

By justchinait
January 20, 2020

For a long time, many people always think that trading companies are middlemen, second-hand dealers, and have not created any value. Today, when Internet information is so developed, trading companies will be eliminated sooner or later.

Is this the fact? The answer is no

It’s like a taxi driver can find you directly, and you can also find a taxi driver directly, but why both of you are willing to make a deal through Uber?

How to understand? Because Uber is more convenient, it saves a lot of tedious steps. If you don’t call for a taxi through Uber, you will have to walk to the side of the road and stand against the scorching sun. You will wave your hand when you see a taxi but you may be unable to travel because the driver is asking for a high price or the driver is unwilling to go to the destination. Uber is different, it will one-click to match the driver and clearly mark the price. You only need to wait for the driver’s call in the air-conditioned room. You can cancel the transaction if you wait for a long time. It’s much easier and more convenient.

The trading company has similar functions as Uber. The following is a detailed description of the functions of a trading company.

What is the difference between it and a factory?

1. MOQ

Trading companies have low MOQ and factories have high MOQ. Orders lower than MOQ will not be accepted by factories. Trading companies have more resources to integrate, so MOQ is naturally low.

2. Many product categories

Often factories can only make a few products, and trading companies can sell many products at the same time. Large trading companies even have millions of SKUs.

The more types of your products, the more you can meet the diverse needs of consumers. If you want to purchase a variety of products, you need to find many factories to cooperate with, or you can find all the products from a trading company.

3. Quality control

You can’t go to the factory to inspect the goods every time. Sometimes you will rely on the photos taken by the factory to inspect the goods, and sometimes you will rely on the samples sent to you by the factory. There are loopholes, and there is no way to fully control the quality of the goods.

On the basis of the factory inspection, the foreign trade company will help you inspect the goods again, which greatly reduces the product defect rate. Trading companies are more aware of product quality and more attentive and can help you control your own levels

4. High efficiency

Trading companies develop products more efficiently. They help multiple customers connect to multiple factories at the same time, which is more cost-effective and efficient than a customer connecting to multiple factories.

Especially for young customers, he owns many products that produced in different factories, and the quantity is very small, so it is very difficult for them to follow.

5. Good service

Many factories do not provide good service, you will know that after you deal with the factory for a while. Why is it bad? One is that they have a lot of things to deal with, make them whiny. Second, in order to obtain orders, the factory deliberately quoted extremely low prices. The third is that some factories have too many orders to produce and give priority to large orders and large customers, and small orders go back.

Trading companies are more strict than factories in insisting on the customer first and strictly follow customer needs, fear trouble, and pursue customer satisfaction.

6. More flexible payment methods

The factory generally only accepts the EXW price, and the whole balance must be paid after the goods are ready.

Trading companies generally can give customers enough support, such as 30 days payment, bill of lading payment, etc.

7. Trading companies can find many factories to obtain certification reports

Foreign trade companies can easily obtain endorsements from powerful factories, and obtain their various certification reports and successful cases. The factory produces the goods for itself, these certification reports and successful cases may be provided. Many countries stipulate that the corresponding certification report must be provided when importing, but many factories cannot provide it. At this time, trading companies can flexibly find factories that can provide certification reports.

In the above summary, if you want to buy Apple electronic products, you will not tell Jobs, Mr. Jobs, I am sorry that you are not a factory, and I do not want to buy it with you. Therefore, when choosing a supplier, we must proceed with our own needs. Instead of just thinking that the factory is good or the trading company is good.


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