Running an import business is not an easy task. That is because it involves a lot of things that are beyond your control. Fortunately, with door to door shipping it is now easier to venture into it. Some traders avoid purchasing from trading firms in China as they consider them as brokers. They think it is better to buy directly from the factory to get the best prices. Moreover, there is a lot of information online about why you should buy from the factory instead of trading companies. Unfortunately, most of such articles focus on their interests and not that of the importer.
If you are planning to import goods from China, you should consider dealing with trading companies. There are many advantages and a few disadvantages to doing this. These are the different types of trading companies in China.
Filed Trading Company
This type of company is based on the culture and history of the country for many years. Ideally, it is a stable business with a large team. You may even getter better prices dealing with this type of trading company than even the manufacturer. That is because it is normal for factories to provide 10 to 20% price differences. Since trading companies understand this concept, they easily navigate their ways to find quality products at competitive prices. Thus, you can get a fair deal with them.
For instance, if you are selling motor vehicle accessories, you will need to deal with several factories to purchase accessories for all brands of vehicle parts and accessories. As a result, you will deal with a professional machinery company. In this way, you can save a lot of effort and time.
Since they specialize in a given niche plus their many years of experience, they will offer you better deals. The only disadvantage is that they do not compete with manufacturers as far as the supply of products is concerned. Ideally, they do not add value to the product.
Grocery-Type Trading Firm
This type of trading company deals with all forms of products. These businesses rely on factory resources. Since these types of trading companies sell any given product, it is a sign that they lack professionalism no matter where they source their products. If you are looking for customized products, you should avoid these types of trading companies.
Their main advantage is that they are good at sourcing products and are ideal for consumer products. You can find these companies on e-commerce sites.
Hot-Selling Trading Company
This type of company engages in the sale of hot-selling goods. In this case, the company identifies what is selling at the moment and sources the product. The good thing about this type of company is that it has adequate factory resources. Therefore, they do not have issues with product availability.
However, this type of trading company is short of structure and stability to provide aftersales services. It has few employees who operate from the comfort of their homes. Another issue is that it does not have a long-term plan for any given product as it will jump next to the hot-selling product.
SOHO Trading Company
SOHO refers to a small office, home office. This trading company will have a few employees. Although most of these companies are unreliable, you can find some that are genuine. The good thing about them is that they have less cost of operation and transfer the benefits to importers.