304 North Cardinal St.
Dorchester Center, MA 02124
Trading companies play a crucial role in Chinese markets.
They usually don’t deal with the production process, and instead, they outsource goods in bulk and sell them to their buyers.
If you deal in hard-to-find products or want to buy products in low quantities, a trading company is your go-to option.
There are so many benefits of dealing with Chinese trading companies.
They often have good market awareness and a huge range of different products. Moreover, they have a good work relationship with different factories operating in China.
If you plan to establish some beneficial ties with a Chinese trading company, you must know everything about them.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
As evident from the name, these types of trading companies focus on top-selling products in the market.
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.
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.
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.
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.
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.
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.
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.
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.
You can easily locate SOHO traders on Alibaba, global sources, and on their websites.
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.
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.
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.
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.
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.
In order, starting with the most useful, here are our top 20 China sourcing websites:
As the world’s largest b2b sourcing portal, the name “Alibaba” has become synonymous with sourcing from China. Usually it is the first website people turn to when searching for products, and not without good reason, the range of suppliers and products it lists is very comprehensive.
The website has however developed a reputation as a hotbed of counterfeits, a situation which CEO Jack Ma has called “a cancer”. Other issues faced by the website include dodgy supplier verifications and scams.
From starting out as a sourcing website, Alibaba Group has now grown to be China’s largest tech company and it’s interests include a portfolio of ecommerce platforms.
DHgate is an online wholesale marketplace where buyers can find competitively priced quality made in China products, usually at lower MOQs than other platforms.
One standout feature is their payment handling system, which only passes payments to the seller when the buyer confirms receipt of goods.
Global Sources has helped more than 1.4 million international buyers in more than 240 countries to source from overseas, with China making up the majority of deals.
Their regular Hong Kong trade shows are very popular and help facilitate international companies to do sourcing in China face to face with trusted Chinese suppliers.
This website is a third-party platform for connecting buyers with Chinese suppliers and features a clean layout which is easy to navigate.
Similar to Alibaba.com, Chinese suppliers can create their own homepage on Made-in-China which includes their company profile, introduction and product listings.
China Suppliers claims to be the “Exclusive Government Authorized B2B E-Marketplace in China” and our research found they are owned by the China Internet News Center (中国互联网新闻中心) which is under the State Council Information Office.
Despite a slightly cumbersome interface it is a useful website featuring many Chinese suppliers and products. Plus, it has a very easy to remember URL!
Specializing in high-tech and electronics, Shenzhen-based OFweek is a well designed website featuring many Chinese suppliers.
If you are looking for Chinese tech products make sure you check it out.
AliExpress was launched by Alibaba Group in 2010 as a platform for Chinese companies to sell to foreign consumers.
Although not a sourcing site as such, it is nevertheless widely used for this purpose, especially for companies looking to buy with low MOQs.
Unlike on Alibaba.com, sellers on AliExpress can be either companies or individuals making supplier verification difficult and leading to some scams.
Operated by the Hong Kong Trade Development Council, this website plays an important role in helping Hong Kong companies to establish relationships with buyers from around the world.
These days, there isn’t much manufacturing in Hong Kong, but many Hong Kong companies operate factories in Mainland China and this is a good gateway to sourcing their products.
A clean and easy to use website, DIYTrade features over 5 million products across a wide range of industries from underwear to ball bearings.
A bridge-builder that empowers merchants to easily connect and do business. Recommended by the Shenzhen Government and American International Business Council.
One of the leading global b2b marketplaces, Korea-based EC21 is very popular with Chinese manufacturers looking for international buyers.
South Korea-based ECPlaza features a large number of Chinese suppliers on their easy to navigate website.
GlobalMarket has established solid cooperation with reputable Chinese suppliers and heavily promotes their GMC (Global Manufacturer Certificate) certifications which claim to only include genuine manufacturers. Definitely worth a look.
Although a global sourcing website, with offices in Guangzhou, Shanghai and Beijing, Tradekey certainly has a strong Chinese presence.
Claims to be the first b2b platform with both ISO 9001 and ISO 27001 certifications. Although their website can feel cluttered, it contains a hive of China sourcing information.
Focusing on suppliers from Taiwan and China, Asian Products is a slightly old-fashioned but nevertheless useful source of information with plenty of companies listed.
B2B Manufactures is another listings website specializing in Taiwanese and Chinese manufacturers. Although their listings covers a wide range of products, the results for industrial equipment seem to be strongest.
As the official website of the world’s largest small commodity wholesale market – Yiwu International Trade Market, Yiwugo offers their physical stores an online presence. Especially worth a look if you are planning a visit to Yiwu’s enormous market. Previously called yiwubuy.com.
Specialized in electronics, robots, mobile phones and accessories, Banggood is a B2C platform operated from Mainland China, Hong Kong together with overseas warehouse to help global buyers.
Many factories in China are operated by Taiwanese companies and using Taiwan Trade can be a great way of locating them. Also useful for finding made-in-taiwan products too.
Founded in 2007, New York Stock Exchange-listed LightInTheBox offers products in the core categories of apparel, small accessories/gadgets and home & garden.
Just as companies worldwide look to China for product sourcing, Chinese companies are also looking for Chinese suppliers to manufacture their products.
If you can read the Chinese language here are a number of very powerful domestic websites which cater to product sourcing:
1688 is the Chinese language version of Alibaba.com
HC360 is one of China’s leading b2b websites for domestic trade.
This online sourcing platform specializes in large-size machinery and equipment.
MakePolo used to have an English language website and appear in our top 20, but now it’s a Chinese-only service.
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.
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.
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.