Why You Should Opt for Chinese Trading Company?

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Why You Should Opt for Chinese Trading Company?

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A trading company sells products to importers and Chinese trading company generally prefer to work directly with foreign buyers. – PowerPoint PPT presentation

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Title: Why You Should Opt for Chinese Trading Company?


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Why you should opt for Chinese trading company?
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  • Trading is the act of buying and selling
    products, or services, for the sake of profit.
    Therefore, it could indeed be said that a
    manufacturer, is also a trading company
    assuming they actually sell their produce. In
    this article, however, the term Chinese trading
    company is not referring to manufacturers but
    to Chinese businesses specialized in buying items
    from manufacturers, and selling them to overseas
    buyers.
  • That said, Chinese trading company are strictly
    not limited to either traders or makers. Many
    fall somewhere in between. In this article, we
    introduce you to the 5 most common types of
    Trading Companies in China, and what importers
    must know to avoid disorganized traders, and even
    scammers. Before you read this post, I have to
    emphasize that some trading companies here in
    Chinaincluding Hong Kongtruly create value for
    their customers.

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  • 1) Trading companies tend to work with low-grade
    factories A Chinese trading company is in a
    delicate situation. It has to make a margin and
    keep its selling price competitive. And it has to
    ensure that its customers and its suppliers dont
    start doing business directly together.
  • The solution is usually to work with factories
    that are not quite used to exporting themselves.
    These manufacturers typically have a low cost
    structure and are not properly organized. Another
    advantage (in the eyes of traders) is that they
    seldom have any English speaker on staff.

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  • 2) Trading companies seldom tell their customers
    about quality issues A trading company sells
    products to importers. Therefore, if a foreign
    buyer is not satisfied about the way an order was
    handled, the trading company can lose money the
    purchaser can ask for a discount or a shipment by
    air, or even cancel the project. So these
    intermediaries often keep their mouth shut when
    they know of serious issues, for fear of
    frightening their customer.
  • To make things worse, many trading companies do
    not do check quality at all in their
    subcontractor factories. Their job is
    match-making, communicating, and shipping. After
    all, if the buyer is serious about quality, he
    will come and check it by himself, right?

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  • To make things worse, many trading companies do
    not do check quality at all in their
    subcontractor factories. Their job is
    match-making, communicating, and shipping. After
    all, if the buyer is serious about quality, he
    will come and check it by himself, right?
  • The importer should take the lead and send
    inspectors in the factory. When this is the case,
    the intermediary has a strong incentive to avoid
    quality issues. For maybe 3 of their shipments,
    trading companies that work for my clients ask me
    to postpone an inspection because their
    internal QC rejected the products, and re-work is
    under process. When no inspection is scheduled,
    they never write this to my clients!

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  • Trading companies often do not have any control
    over the factories A very small minority of
    trading companies have a stake in the factories
    in which they place orders, even though they
    generally pass themselves as the owners. They
    conduct friendly business (no contract, no
    penalties). When things go wrong they have no
    real power over the manufacturer, who knows that
    the middleman will absorb charge-backs and
    airfreight imposed by the importer rather than
    lose a customer.
  • Chinese trading company generally prefer to work
    directly with foreign buyers, who switch
    suppliers less easily than local traders. It
    means they will focus their efforts on making
    their overseas customers happy, and the trading
    companies orders dont have the priority (unless
    they represent 40 of the manufacturers
    business).

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Contact us
  • Sail Smooth, LTD.
  • Locations Miami, FL, AP-018004
  • Phone (305) 647-7963
  • Website www.sailsmooth.com.hk
  • E-mail info_at_sailsmooth.com.hk
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