TOP 20 Best Chinese Trading Companies That Will Boost Your Sales

What is a Trading Company?

A trading company is a firm that connects buyers and sellers within the same country or different countries. Trading companies can also be referred to as middlemen between manufacturers and wholesale suppliers/retailers.

Trading companies are experts in import and export rules, regulations and procedures. To maximize their sales, they deal with multiple manufacturing companies. They establish their own marketing networks by identifying products and negotiate with the manufacturers and suppliers.

For the trading companies to create a large pool of China trading partners, they employ sales agents in both domestic and foreign markets to solicit for orders as well as promote their brands.

Why You Should Buy From Chinese Trading Companies?

Buying from Chinese trading companies has numerous advantages. Most wholesale suppliers and retailers do not even know the manufactures because the trading companies are on their doors on a daily basis to monitor the movement of their supplied products.

Here are many other reasons as to why you should buy from them;

i. Trading companies do understand customers better than the manufactures and are therefore more likely to sell more suitable products for that region.

ii. They have better customer service compared to the factories. Establishing markets is challenging and they, therefore, better service their customers with caution.

iii. Most Chinese trading companies to sell for small manufacturers not like to have the expertise and capacity to export their products. Most of these manufacturers’ products are usually low priced an advantage directly passed to you.

iv. Some factories have a very high set minimum order quantity requirement not affordable to small scale buyers. This is simplified by the trading companies who buy in large quantities and sell according to the customers’ requirements.

v. Trading companies do promote items they supply which factories don’t. For them to ensure their products sell, it’s upon them to put every effort to promote their products and prove themselves worthy to the customers.

8 types of Chinese Trading Company

1. Hong Kong Trading Companies

Hong Kong was one of the many places used for manufacturing goods.

However, after moving the manufacturing to the Mainland in the 1980s, the Hong Kong trading companies still kept their grounds.

These companies then expanded in forming large manufacturing groups operating in many places, including China, Malaysia, Cambodia, and Vietnam.

Smaller manufacturers operate a single factory on the Mainland and provide expertise and transparency unmatched in the world.

How It Works

Hong Kong trading companies are dealing with a wide range of goods in mainland china. These companies are run by different agents.

They deal with the customers while representing a brand and take orders from them.

These orders are then transferred to the firms where they are taken care of. These companies are well-known for their import as well as export to other countries.

Advantages

With the advancements in Hong Kong, its trading companies are growing. They are now able to deal with a large consumer ratio.

Their actual production has increased to a great extent in the past.

With a long time in the field, Hong Kong firms are well-aware of the requirements of their customers. And also know how to fulfill them perfectly.

Disadvantage

There are many trading firms and companies in Hong Kong.

But they mostly work on lower scales having 10-15 employees. This makes it hard for the companies to deal with bigger international orders.

However, they are good and reliable due to their long-term experience.

2. Factory Group Trading Companies

As evident by the name, these companies are made from a combination of manufacturers.

They combine to form a larger manufacturer that facilitates the buyers, simplifies products, and invoices the procedures.

Moreover, they also trade through being a single entity.

How it works

The factory group is established when two or more manufacturers join together to form a common entity.

This manufacturing entity then holds different products from the factories that are adjoined in the group. It helps create efficiency as the buyer will only interact with one entity for all the groups.

Advantages

The factories can stand on a common platform and sell their products equally. It will also facilitate their buyer to buy goods from one place.

The resources can be set, and the pricing for the products can also be established by mutual consent.

Disadvantage

If the production cost is high, the product’s price range will be set via mutual consent.

However, if the price of a certain product is set high, other group members can complain since their product prices will be lower.

3. Combined Manufacturer & Trading Company

Such a type of a trading company will provide the services of both a manufacturer and trading company.

These types of firms utilize their resources to manufacture certain products and trade-in the products they produce.

How it works

The owner is working in a domain. However, the product that the trading company is selling has multiple variables that buyers often ask about.

If possible, the trading company owner will invest in manufacturing these other variables to cope with consumer demands.

On the other hand, it can still keep its focus on selling the core products of the brand.

This will allow them to produce goods as well as seamlessly trade with multiple products.

Advantages

It helps create a better approach to customer retention.

As the trading company will be offering products and variables too, they can retain customers efficiently.

Disadvantage

Producing variable products aside from the mainline product will add to the additional resource cost.

Moreover, it’s highly probable that the main product may get overshadowed by the variable products.

In addition, the trading company will need to think about the location for establishing the factory for the variable’s production.

4. A Certain-Filed Trading Company

This type of trading company is focused on a certain niche of products.

They have a deep-rooted history in the particular segment. They boast their stable business based on the highly mature team.

In addition, the experience in the domain is another factor that makes them quite competent.

How it works

Such types of trading companies work in a small number of niches.

These companies often work in a manner that allows them to pursue excellence within that niche.

It helps their team to be proficient and mature in their workability.

Advantages

One of the many advantages of referring to them is that you’ll get to have a competent team of staff.

This team has brilliance in handling a vast supply chain for the certain product they work on.Moreover, they will also provide competitive pricing better than manufacturing companies.

For example, if you want to purchase motorcycle parts, you’ll visit different outlets.

However, with them, you’ll be able to get smart options for the parts you need.Because they will hold expertise in the niche and will provide a much competitive insight.

Disadvantage

The only disadvantage of these companies is that they are unable to compete with mass production needs.

Unlike manufacturing companies, they are not able to cope up with bulk orders.

If you need a thousand disposable cups, you can just refer to a manufacturing firm instead of asking them.

How to find and identify them

You can either find them by searching on Alibaba or by attending trade shows.

For online shopping, you need to check whether the product is in stock or not. If a company has a wide range of products, it’s most likely a trading company.

5.  Grocery-type trading company

These types of companies depend upon the factory resources around them.

They deal with all kinds of different products.

They upload and update their website based on the products that they have nearby.

How it works

As evident, such a company will collect resources from its surroundings.

Later they will post them on their website, showing the customers that they have such products.

When approached, the company will refer to the producer, acquire the product, and sell it.

Advantages

You can find a vast variety of products on their website.

These products are more focused on products that are more commonly used in daily lives. Consumers can get a vast variety of products easily.

Disadvantage

Having a huge sourcing ability means to leap at every product that comes in view. This type of workability lacks professionalism in the business model.

Moreover, such a company will keep on adding products irrespective of their demand.

This makes the website untidy with a bulging flow of products.

In addition, such companies also don’t invest in their development cycle.They won’t focus on how the material or the product is produced.

Neither will they check for average cost estimation and other elements.

Where to find them

Such companies can easily be found on e-commerce platforms such as Alibaba and Dhgate.

They don’t attend trade fairs as it costs around $4500 for the annual fee. They don’t have enough revenues, and showing unrelated stock is not a good trade show.

6. Hot-Selling Type Trading Company

As evident from the name, these types of trading companies focus on top-selling products in the market.

How it works

Such companies have a keen sense of the market and how it works. They keep a good eye on the products that are selling in the Chinese market.

They buy those products from the factories and earn profit by selling them in the first 2-3 months.

Advantages

The buyers can easily find trending products from these companies.

Moreover, such brands also invest in marketing, promoting the hot-selling products to attract customers.

You will also find the products out of stock sometimes due to the high customer demands. But any HS company will have multiple sourcing options that will restock the commodities.

Disadvantage

Even if they are selling hot-selling products, such companies don’t have long-term plans.

They focus on getting the products from the market and selling them instantly to earn a profit.

Moreover, they claim to be factories but are in reality just trading companies.

Where to find them

You can find them on various platforms such as Alibaba, Aliexpress, Dhgate, etc.

In addition, these companies also lack personal profiles and identities. Even a person can operate as a hot-seller.

By simply getting hands-on with such products, and contacting HS companies, one can start their HS business too.

7 .SOHO Trading Company

SOHO or small office, a home office is a type of trading company with quite a low amount of people.

These people are mostly former employees that found SOHO trading businesses to earn on their own.

How it works

The SOHO owners simply register themselves on Alibaba after obtaining a company registration.

Later they gain the trust of people by claiming to be a trading or factory company. The owners can choose to be certain-filed, grocery-type, or even HS selling, depending on their expertise.

Advantages

One of the many advantages of SOHO trading is that it costs less operational costs.

Since there are a low number of people, it improves cooperation. They can also provide better than a professional trading company by offering the best prices and services.

Since SOHO owners can be seen as entrepreneurs, one can expect them to be hardworking.

This is to ensure that the business keeps on moving towards continuous growth. They are especially viable for those who want to import from China as they give better rates.

Disadvantage

As highlighted earlier, such traders are working hard and attending to multiple business prospects.

In a way, they have a lot to cater to and can leave your requests unattended.

Where To Find Them

You can easily locate SOHO traders on Alibaba, global sources, and on their websites.

How To Identify Them

You can check for their differences in the phone numbers. SOHO traders will leave their phone numbers for people to contact them.

Another way is to ask them for their company photos, including team photos, logos, office photos, etc.

If they come up with excuses, it’s likely a SOHO.

However, finding a reliable SOHO owner will earn you a lot of benefits.

These companies are working to earn a name and can work proficiently to give your business the boost it needs.

Eastern China is one such example of a SOHO trading company. Despite not having any company account, it still managed to gain more than $15 million in sales all time.

8. Sourcing Company

This type of company serves as a link between the Chinese factories and importers.

They are also a type of trading company acting as middlemen. They help with the product and supplier sourcing needs of the buyers.

How it works

The goal of a sourcing company is to find the right suppliers for the buyers. They know different suppliers in the market.

When a customer connects with them, the company finds a supplier meeting their demands.

Who needs them?

The measure to take is that you need to find the right company.

A reliable sourcing company will be able to cater to your needs proficiently.Even if you need customized products, the company is responsible for finding you such a buyer.

In addition, importers that have little experience in the market can use them.

They will have the chance to get a good fit via a sourcing partner and will save time on finding one too.

Advantages

One of the many advantages of a sourcing company is that it can be outsourced.

It saves time and effort to locate suppliers. Besides, their invoicing procedure is often easy.

Thus, businesses can focus on their management while their suppliers are being located.

In addition, they offer flexible pricing by turning down suppliers so that they may come to the level of demand.

You can expect to find suppliers at cheaper rates with them than on your own.

How to Find the Best Chinese Trading Companies?

Getting the right information in the world today is quite easy however how to verify as to whether the information is authentic is a great problem. There are many ways you can use to get the best trading companies from China.

● Trade Shows- These shows are organized very often in all major cities in China. You only need to visit them and get to know them one on one.

● Searching on the internet- This is where all the companies you are looking for.

● Magazines, newsletters, and newspapers- Most companies advertise themselves via these media. Their contacts and websites are usually provided.

● Referrals- This is the most efficient and resource free method and the information provided is authentic.

How to Choose/Identify a Chinese Trading Company as Your Partner?

This is what breaks or makes your business. Any company poses to do better than the other and it’s upon you to know how to identify the most suitable for your business.

Here are the factors to consider when choosing the right China trading partner.

● Amount of capital- It’s more advisable to choose companies with huge operating capital for it signifies their strengths.

● ISO Certification- Is the company ISO certified or not. If it’s certified, it is a good choice but verify the document.

● Operating Business License- The best company will have a valid business license and ensure it’s the best choice, you may consider searching for trophies it has won.

Over to You

Any business thinking company will at all times engage trading companies to simplify their operation and put more effort into other departments. Searching for overseas markets is time and financially consuming.

Choosing the right Chinese trading company valuing them as you would to one of your company departments can not only boost your sales but take the business to the level of an internationally recognized institution.