Manufacturer VS Trading Company, Who is More Suitable for You?

Tie importers always compare whether Chinese factories or trading companies are better. The ultimate goal is to enjoy their wholesale prices. Some people will say: "The manufacturer's price is lower." Others will say, "The trading company's service can meet my requirements."

Either way, in this article, we’ll take a look at the best options for your tie importing business. It can be a manufacturer or a professional trading company.

In fact, choosing a trader or manufacturer most importantly depends on the order quantity of the tie. Yes, if you want to import ties from China and are confused, please check your order quantity first. Then consider the points discussed below. It will help you.

The difference between a tie manufacturer and a tie trading company

Before going into details, let’s understand the difference between the two. A manufacturer is a manufacturer responsible for production. Trading companies, on the other hand, supply manufacturers' products to brands.

Manufacturer features

The manufacturer is the main production point for the products you want to import. Tie manufacturer is the main area where experts produce all kinds of ties. In the manufacturer, every step from manufacturing to packaging is done to meet standards. In addition, the manufacturer also produces their special products, which they call signature products.

Characteristics of trading companies

Traders do not bear the burden of producing products. Instead, they source their products from various other factories. In addition, trading companies in China can provide you with a variety of products. It is easier for them to procure fabric than to manufacture it.

Benefits of working with a trading company

You have to understand the benefits of working with a variety of companies to understand the tie business. Let’s take a look at the positive aspects of working with a trading company.

But before you get started, keep in mind that you should choose to work with a trading company if:

Do you want to order a small amount of products or a large variety of products and a small quantity.

A. Experience and infrastructure

Experienced trading companies in China are also responsible for the logistics of your products. Therefore, working with a good trade agency can help you get rid of various other problems.

B. Cooperation between trading companies and factories

Trading companies purchase products from many manufacturing units. Therefore, they build a good relationship with the management to get the best results.

Likewise, their relationship will strengthen over time when they begin to communicate frequently. Additionally, these companies often employ locals who speak the manufacturer language.

Additionally, they promise that the manufacturer will host buyers regularly. Therefore, manufacturers provide them benefits that help build a good relationship.

C. MOQ flexibility

Trade business shows flexibility if your order is less than the company's MOQ. Likewise, importers face issues of unit price and minimum order quantity.

Any fluctuation in one thing will cause a change in another. Reducing the minimum order quantity will result in higher unit prices. But a trading company can give you an advantage by showing flexibility in both areas.

D. Be responsible for your own actions

Sometimes the manufacturer may stop communication after payment and not ship the goods. This may happen in newer plants, but not in older plants. To avoid encountering this situation, importers usually contact any trading company.

It is worth noting that trading companies show more responsibility for their actions. Therefore, if a copyright infringement occurs, you can request changes to the product.

E. Reduce costs

To reduce language and cultural barriers, these trading companies hire language experts. It also helps prevent the chance of miscommunication with customers. Also, to better understand customer expectations and requirements.

F. Smoother communication

To deliver consumers' orders safely, trading companies work with technical experts. These experts analyze the requirements and act accordingly. Therefore, trading companies possess high technical knowledge related to their products. However, small-scale factories do not bring much benefit, but large-scale factories do.

G. High technical knowledge

To deliver consumers' orders safely, trading companies work with technical experts. These experts analyze the requirements and act accordingly. Therefore, trading companies possess high technical knowledge related to their products. However, small-scale factories do not bring much benefit, but large-scale factories do.

H. Satisfy customer needs

Trading companies are more concerned with meeting customer needs. Therefore, they try their best to fully meet the requirements of consumers.

Challenges of working with trading companies

Challenges are part of everything in this universe. In addition to the benefits, sometimes you should also face some challenges. These challenges are discussed below.

1. No price advantage

When cooperating with a trading company, individuals have no price advantage compared to factories. Factories offer reduced prices on most orders, while trading companies cannot because they are not manufacturers but intermediaries who purchase products.

2. Less control over design, production and materials

Those who care more about raw materials, production methods and designs should cooperate with factories. Trading companies have less control over these things than production companies.

Even though the brokerage tries its best to please the buyer. However. They cannot dictate every required step to the manufacturing company.

Benefits of working with manufacturer

Tie manufacturing companies offer a wide range of benefits to buyers compared to trading companies. If you want to order in bulk, then your best option is to partner with any manufacturing company. The reason for this is explained below.

Lower cost

The most advantageous thing is that the manufacturer provides the lowest order cost than the trading company. Because they produce their products in large quantities and have the necessary machinery

All these factors help reduce costs. If you want wholesale ties, please contact the production company in China and enjoy the cost benefits.

Communicate directly with the manufacturer

For trading companies, there is a vast network to transfer your needs to manufacturers. Therefore, the potential for miscommunication increases. Manufacturing companies, on the other hand, have more opportunities for proper communication.

In addition, you can get advice from the production manufacturer through direct communication. Likewise, you can also discuss your queries with them to get a suitable reply.

Quality control

Customers' primary concern is getting the best quality product. correct? Therefore, quality issue management works best for manufacturers.

Thus ensuring the quality of the product.

Suitable for customization

Customized products are a widespread trend. Therefore, most tie importers want to customize fabrics according to their culture or consumer preferences. In this case, factories provide the best customized services compared to trading companies.

The key steps when customizing are:

●Fabric selection

●Printing method

●Required printing

●Sewing

●Package

More control over design, production and materials

Factories have more control over their designs. The entire procedure is completed under their supervision and consultation. The final product will fully meet the customer's requirements. Because the manufacturer carefully implements the customer's guidelines.

Therefore, if you want to import wholesale ties and are sensitive to design and raw materials, choose a manufacturing company.

Improve transportation

The manufacturer handles shipping with care and attention. They provide good shipping service according to the product description. Here, tie manufacturers are concerned about the safe transportation of ties.

Challenges of working with manufacturer

In addition to the benefits, customers may also face challenges when working with factories.

1. Supply chain issues

Working with one manufacturing company can cause supply chain issues rather than working with multiple suppliers. If the staff at the manufacturer involved do not have adequate training/experience, this can cause delays in product completion and result in a reduced supply of the product needed to be sold.

2. Unpopular products

Most of the time, factories produce outdated or unpopular products. Therefore, one should consider this to prevent such challenges.

3. High MOQ

If you order from a manufacturer, then you should place a large order. Compared with trading companies, the MOQ of factories is higher. So if you want to order a minimum quantity of a product, you may face this challenge.

Types of ties suitable for manufacturer customers

The question now is, which type of customer is suitable to work with a manufacturing company? This depends on the client's requirements and priorities. If a customer wants the best fabric quality and design, then it's best to work with a manufacturer.

Again, keep an eye on order quantities. Please contact a tie manufacturing company in China. Ask about their MOQ and PPU (price per product). If you feel that your order quantity is related to their MOQ, then why not choose to cooperate with them?

If you want a specific fabric print or production method, a manufacturing company is a better choice. If you are interested in custom ties, choosing a manufacturer is your best option.

The manufacturer provides the best tie customization at a more reasonable budget than any agency. Finally, if you want to save money but also get high-quality products, then go to the tie factories in China, they provide services as per the requirements.

Types of tie customers suitable for trading companies

For trading companies, the most suitable situation is when the order quantity is lower than the manufacturer's MOQ. If you want to import ties in small quantities, then working with a trading company is your best choice.

If you don't want to get involved in design and tie production, then working with a trading company is best. Another condition for entering a trading company is if you want to get a variety of products and don't want to deal with them.

Moreover, with the help of trading companies, it is easy to know the trustworthy partners from China. Therefore, you can save time and effort by choosing the right shipping method and company.

How to identify whether the supplier is a trading company or a manufacturer?

Now let’s discuss the troubles people usually face when importing products from China. That’s the supplier’s ID! Yes, people often claim to be a manufacturer even though they are any trading company and vice versa for their benefit. In this case, you should focus on finding out their identity. In order to avoid any scams, the following points must be considered to verify the necessity of the supplier.

(1) Business license

A quick and smart way to verify is to ask for a license from your supplier. If their business card has the words "Production/Manufacturing" on it, it symbolizes the manufacturing company's license.

In order to read and understand the language mentioned on the license, you can use any tool for translation. You can do this by scanning or contacting anyone fluent in Chinese.

(2) Supplier’s minimum order quantity

Test supplier's MOQ. You just ask them to send you a hundred ties now and you can order in bulk later. Now, if your supplier is any manufacturer, they will refuse to place such a small order.

However, if the supplier is any trading company, you will see that they are willing to accept this order. So you can verify them based on a small test like this.

(3) Value-added tax invoice

The Chinese government has an exciting policy for factories that can help you verify your suppliers. The government issues 17% VAT invoices for large factories exporting products from China.

To verify, you can ask them to issue you an invoice stating that you have applied for an export tax rebate.

In this case, if the supplier is a trading company, they will be hesitant to share and may even refuse in the end. But if the supplier is any large manufacturer, they will show willingness to proceed with your request.

(4) Production enterprise audit report

You can request manufacturer audit reports to verify the company's relationships with other companies. If they provide you with a report, you should check the company name on the report and on the business license. If the names match, your supplier is a manufacturer. On the other hand, if they are unable to provide you with a report or show some hesitation, then they must be a trading company.

If the names match, your supplier is a manufacturer. On the other hand, if they are unable to provide you with a report or show some hesitation, then they must be a trading company.

(5) Product catalog

We just learned above that trading companies have a wider range of products compared to manufacturing. Please check the supplier's product catalog, if you find that there are multiple products in it, then it must be a trading company. However, if they have a specific product, that's the manufacturer's logo.

Consider the instructions above and choose the option that works best for you.If you still don’t understand something, please contact us and we will solve the problem for you in one stop!

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