Why Work Through a China Trading Company?
Occasionally, a customer will ask us why work through a China trading company instead of directly with the factory. This is a good question, in many business situations it can be cheaper to cut out the middleman. However, when you are sourcing from China, cutting that corner can end up costing you far more than you realize.
Here are the top 5 reasons why using a trading company will end up paying dividends when you source from China:
When buying from China, it’s critical to know who you’re working with
It’s not uncommon for us to receive a call from a new customer who tried buying direct from a factory in China on their own and got burned. Often, they found a supplier through an e-commerce site, got a few samples made, and then gave the factory a deposit (one recent caller told me they gave the factory a 100% deposit up front, which is a no-no). Problems arose, and then the Chinese factory stopped all communication.
Amazon alone has cracked down on over 50,000 Chinese retailers that they caught manipulating the website with fake reviews.
Knowing that you are dealing with a legitimate factory is key to success when importing.
We only work through companies that we have an excellent relationship with and know we can trust.
Our three trading partner companies will prequalify the factories by calling them and asking them the right questions about their capabilities and manufacturing process. This is critical; when you decide to go it alone, you won’t know if you’re dealing with a factory, a trading company, or a guy sitting in his apartment with a PC.
Our China trading company partners know the culture
Picture a Chinese businessman coming to the U.S. and trying to buy or sell a new product line. He doesn’t know where to go or how the culture works. He fumbles around, not knowing whether the company he’s working with is reputable or if they will do what they promise.
The American business culture is strange to him and he finds it weird, maybe even rude, that they don’t invite him to a banquet. They don’t bow when greeting one another or exchange business cards in the traditional way, by gripping the corners and handing it to the recipient while they grip the corners and accept it. It’s the same if you go to China on your own.
Chinese businesspersons don’t think or conduct business like we do. In the U.S. if a factory messes up an order they can get sued.
In China, the factory will just walk if there’s a problem; there’s little that can be done about it. Having a China trading company on the ground who knows the business culture provides a great advantage over going it alone, they will be able to resolve issues quickly and with better outcomes than with a person an ocean away.
Our partner companies negotiate prices, inspect the shipments, and have relationships with Chinese shipping companies, which means they can ship the product to you at competitive rates
Here again, having someone on the ground in China is invaluable. It’s far better to have a Chinese person negotiating with a Chinese company than an American. The process moves quicker and with more efficiency.
Our China trading company partners back up the quality to your written specifications
Although we do everything we can to avoid problems, on the rare occasion that you might receive defective products not made to the written specifications you provided us prior to production, our partner companies will negotiate getting replacement products or compensation from the factory.
So you can relax knowing you’re in good hands.
The last few years have been hard on everyone. If anything, it’s shown that life can be uncertain. Buying from China doesn’t have to be that way.
Having someone you can trust means you won’t get burned. We’ve been in business since 1991 and our approach is to build long term relationships with our clients by helping them safely and cost effectively source and import. We wouldn’t have been around for more than 20 years otherwise.
Ready to get started? Contact us now.