Trading companies are businesses working with different kinds of products that are sold for consumers, business, or government purposes. They are intermediaries that engage in the import and export of a variety of products. Activities carried out by these companies include :
- Identification of suppliers to meet clients’ requirements.
- Negotiating the terms of sale and production lead time.
- Financing and assurance of payment to the supplier
- Logistics and Transportation
- Preparing customs declaration
Importers usually want to work with factories directly, cutting out the middleman and thus having a favorable price. However, there are significant advantages of cooperating and establishing a long-term relationship with a trading company. In this article, we will mention only five key reasons to work with a trading company.
Reasons to work with a trading company
Better communication
Most factories in China prefer to focus on improving the production and quality of their products than looking for customers. They will rather have cooperation with trading companies than sell their products to different clients. With this being the case, some factories do not pay much attention to employing a sales team with a good command of English, since most of the time they will be dealing with Chinese trading companies. Hence, they are better to work with in order to manage communication. They are swift in replying to customers’ emails and notify clients of any production, shipping, and inspection issues.
Increased Product Choice
Every product supplied by a trading company, usually attracts many factory suppliers. Even for just an item, they may offer products of different qualities according to a customer’s request. But Manufacturers most times specialize in producing one product which leads to limitations. For example, if you are an importer of bags, you might decide to buy a few units of leather bags, rubber bags, denim bags, etc, one factory might not be able to produce different materials of bags. Therefore, using a trading company, in this case, gives you more options because they will work with many suppliers to meet your requirements.
Smaller Minimum Order of Quantity (MOQ)
These companies have smaller MOQs than factories but can serve both small and large businesses well.
Accountability
Trading Companies choose their suppliers carefully, they choose stable manufacturers, produce good quality products, and deliver on time. If there’s a defect with the quality of products, the trading company will liaise with the factory to resolve the problem.
Experience and Infrastructure
When buying products from China, it is one thing to get your products produced by a factory, on the other hand, it’s an entirely different process to get your product delivered to your market of sale. Working with a reputable trading company can offer a one-stop service to their clients, which also includes freight forwarding. They will not only be able to manufacture your product but also offer end-to-end logistics to meet their client’s requirement.
Conclusion
Working with a trading company can be greatly beneficial to you and your business. A trading company like Moonbay group will be essential in handling all your importation needs.