Comments on: Trading Company or Factory: Which Chinese Supplier Should You Use? https://www.ecomcrew.com/types-of-suppliers-in-china-trading-companies-factories/ Start and Grow Your Ecommerce and Amazon Business Wed, 10 May 2023 02:15:24 +0000 hourly 1 https://wordpress.org/?v=6.5.3 By: Z.W. https://www.ecomcrew.com/types-of-suppliers-in-china-trading-companies-factories/#comment-49323 Mon, 25 Jul 2022 09:34:30 +0000 /?p=11946#comment-49323 I took the family business not long before, which is a packaging machinery company. And thus I got much chance to see how shameless some trading companies can be.
Trading companies, at least in the packaging machinery industry and from what I have seen, are getting more and more shameless. Just to put some examples and what they do:

1. Taking photo of a real factory and get the logo removed, then edit the photo of their own logo, thus to disguise as a manufacturer, though majority of the edited photos are evidently fake.
2. Ask workers of the factory to wear clothes with the trading company’s logo, take photos and place them on the website, thus to deceive the visitor that they are factory
3. Get registered on B2B platforms, i.e. Alibaba, as a manufacturer. Yes, it is possible. So don’t trust fully the identity shown there.
4. Plagiarized images and blogs all over the world and even from those world’s leading companies and put them on their website to give a well impression.
5. Being bogus. They do not manufacture anything and have only their PCs though, claim on their website that they are the top leading manufacturer of every category on their website.

We are victim of some of the above unethical conducts. (Fake factory photo, plagiarized videos and images, copyright infringement, etc..)

Believe me, when it comes to a Chinese trading company, everything can be fake.

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By: Alex https://www.ecomcrew.com/types-of-suppliers-in-china-trading-companies-factories/#comment-45116 Fri, 11 Mar 2022 13:31:56 +0000 /?p=11946#comment-45116 In reply to Crystal.

Man, this is hard! I am extremely paranoid about carrying chinese products, or going through a trader to get stuff dropshipped from my webstore.

I wish i didnt have to get a test item from the factory, or who im talking to on alibaba.. any reccomendations on legit businesses on alibaba for good- same as pic quality items for a landscaping business.. lights, garden, lawn, anything in that catagory would be amazing.. i dont have funds to buy items from there to stock.. too many items, too much of a hassle.

If i buy lighting from a us suppier, its the same as in the pics.. just everything is 100% trust type deals.

I may not even use alibaba, unless you can point me to 100% top notch people in every regard..

Even return policies ect that are quick, easy, and good to go would be nice.

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By: Crystal https://www.ecomcrew.com/types-of-suppliers-in-china-trading-companies-factories/#comment-33810 Mon, 05 Jul 2021 16:47:27 +0000 /?p=11946#comment-33810 Great article! I found it to be very helpful

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By: Dave Bryant https://www.ecomcrew.com/types-of-suppliers-in-china-trading-companies-factories/#comment-30025 Tue, 02 Feb 2021 22:23:20 +0000 /?p=11946#comment-30025 In reply to JD.

Nope – too broad of a request. There’s millions of different products in the world :)

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By: Dave Bryant https://www.ecomcrew.com/types-of-suppliers-in-china-trading-companies-factories/#comment-30020 Tue, 02 Feb 2021 22:18:45 +0000 /?p=11946#comment-30020 In reply to Najee.

I’d be shocked if he isn’t getting a lower price/’commission’. He could also be getting the VAT rebates from China (technically a discount IMO).

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By: Najee https://www.ecomcrew.com/types-of-suppliers-in-china-trading-companies-factories/#comment-29644 Thu, 21 Jan 2021 04:37:42 +0000 /?p=11946#comment-29644 We started importing textiles like pants, shirts, jackets, sweaters, swimwear, bed linens etc. from China in 2020. We research the products on Alibaba and then place the order with the manufacturing Co or trading Co. We paid each supplier directly through Alibaba and they shipped by DHL.

Then we found a trading company who agreed to become an aggregator for us. We do all the research, and create a list for him. Let’s say 15 to 20 different products from different suppliers.

We make one payment to the aggregator, he buys the products from the list we provide him, he puts them in larger boxes and then using a freight forwarder he ships them to us by DHL. Saves us on shipping one package at a time.

Our orders are not huge. $5,000 to $10,000.

I still don’t understand how the trader/aggregator makes money. I asked him and he said he makes money from the exchange rate difference between US$ and RMB. Is the exchange rate difference that big?

If not, how does the aggregator/trader makes money? I asked him if the suppliers pay him a commission, he said no.

So how do they make money? I want to know for the sake of greater transparency. I don’t mind him making money I just want to know how.

I don’t mind paying him a percentage as long as that helps me get better pricing.

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By: JD https://www.ecomcrew.com/types-of-suppliers-in-china-trading-companies-factories/#comment-29486 Wed, 13 Jan 2021 16:53:18 +0000 /?p=11946#comment-29486 Is there a Top 5 or list of Trading Companies you would do business with. Not looking to start Amazon FBA but just expand our product lines at our brick & mortar. Thanks.

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By: Dave Bryant https://www.ecomcrew.com/types-of-suppliers-in-china-trading-companies-factories/#comment-22462 Mon, 30 Mar 2020 01:16:00 +0000 /?p=11946#comment-22462 In reply to Michelle.

Thanks for the tip!

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By: Michelle https://www.ecomcrew.com/types-of-suppliers-in-china-trading-companies-factories/#comment-22162 Mon, 16 Mar 2020 11:10:09 +0000 /?p=11946#comment-22162 Hi Dave, great article! I am from China and worked in both trading company and factory(trading) before, the service quality between the trading company is really different, a lot of trading companies are pretending to be a factory and have little control over the factory (quality) unless you are a big buyer. I am now working for a brand in the U.S., I never thought how incompetent a lot of trading companies are(mostly in sec-level cities): not professional, avoiding direct problems from a customer, and especially for the small trading company is not able to take full responsibility on the quality problem because of little money they have. And the pure factory (for my industry) requires big volume quantity, it is very hard for small/independent brands to enter.

Friendly reminder:
1. Don’t place an order before the prototype, if you have problems in the prototype the chances are the quality will be bad in bulk.
2. Alibaba lists are misleading a lot of time, companies are posting fake pictures and videos

If you are looking for an eyewear factory in Wenzhou, China, please stay away from Jxxxxs Exxxxxx.

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By: Dave Bryant https://www.ecomcrew.com/types-of-suppliers-in-china-trading-companies-factories/#comment-21331 Fri, 14 Feb 2020 18:22:08 +0000 /?p=11946#comment-21331 In reply to Maxinto.

Yes, many factories do a certain degree of trading.

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