Top 20 Best Chinese Trading Company Agency 2023

Question 1: What is a trading company?

A trading company represents a connecting group between buyers and sellers within a country or most times separate countries. 

Trading companies also stand as links in the supply chain between producers and wholesalers or even retailers.

Trading companies are professional in import and export rules, regulations, and procedures. 

To increase sales, they do business with several manufacturing agencies. 

Their marketing strategy starts with the identification of products, then negotiation with the product suppliers begins.

In order to build a large group of Chinese business partners, they hire sales agents in the domestic and overseas market. This is to order and promote their brands.

Question 2: Why should you use Chinese trading companies?

The benefits of using Chinese trading companies in purchasing are many.

Most wholesale and retail suppliers don’t even have to know the manufacturers. Trading companies are the ones who get the job done.

Here are many other reasons why you should make your purchase with them;

1. There is better understanding between retailers and users than compared to manufacturers. This means that consumers will get products specifically meant to solve their problem from retailers.
2. Their customer service is better compared to factories. Establishing a market is a challenge, so they ensure they treat the customers more respectfully.

• Most Chinese trading companies will source their goods from growing manufacturers who do not usually export due to lack of experience.

You as a buyer benefit mainly as the products are cheaper in cost.

1. Small customers are not able to meet up with the high minimum order quantities of some manufacturers.

This is simplified by wholesale companies that buy in bulk and sell according to customer requirements.

1. Trade companies promote the items they supply, and factories do not.

To ensure the sale of their products, all they need is to do their best to promote their products. Hence, proving themselves to customers.

1. They offer various products and are also willing to provide some free products. Such a trading company acts as an intermediary between importers and Chinese factories.

In other words, they act as intermediaries helping to bridge the gap between supplier and customer.

They are responsible for procurement, supervision, quality control, and product shipment.

Question 3: What are the 8 Kinds of Trading Enterprises in China?

1. Trading companies from Hong Kong

Hong Kong has been one of the many places used to manufacture products.

In the 1980s, although the manufacturing industry moved to the mainland, trading companies still retained their offices in Hong Kong.

These companies then formed large production groups operating in various regions, including Malaysia, Cambodia, China, and Vietnam.

Many small units operate as one factory on the continent and provide quality like nowhere else.

2. Group of factories trading company

As the name suggests, these companies consist of manufacturing factories producing different materials and products.

They combine to create a larger manufacturing company or a single business entity to facilitate exports and invoicing.

3. Combined manufacturer and trading company

These trading companies often provide manufacturers and suppliers’ services to meet customer requirements.

The company uses its resources to produce and market its products.

4. Registered trading company

The focus of these companies is on a specific niche product. Their history is deeply rooted in the individual segment.

They pride themselves on their successful business based on a highly sophisticated and experienced team.

They can offer the best competitive prices compared to direct production units.

5. Grocery store

These trading companies deal with different products and depend on plant resources.

A typical grocery store transfers all new products available or manufactured near their website.

6. Hot selling niche trading company

From their name, you can tell these companies are focused on selling products that are trending in the market.

These trading companies are very enthusiastic and have a good sense of studying and recognizing the latest market trends.

They make money easily and quickly by selling products with the knowledge available to sell factory resources.

They close sales quickly as demand decreases and focus on a new product in the market.

7. SOHO trading company

SOHO includes a small office or home office. It is a type of commercial enterprise using the least number of employees.

These are the people who become the founders of SOHO after gaining past customers’ trust and starting their own business.

A SOHO company’s primary function involves registering a company.

They also create accounts on Alibaba to be projected as a factory or trading company to gain customers’ trust.

8. Supply company

This kind of trading company acts as an intermediary between importers and Chinese factories.

In other words, they act as intermediaries helping to bridge the gap between supplier and customer.

They are responsible for procurement, supervision, quality control, and product shipment.

Question 4: What are the Factors you should consider when choosing the right trading company in China?

Amount of capital: it is better to choose companies with significant working capital, which is an indication of company strength.

ISO certified: Does the company have ISO Certification? If you are certified, this is a good option, but check the document.

Operating Business License: A valid business license will simply give any company an edge over others. Just make sure the license is legit.

Maybe you should also look out for awards won.

Question 5: What are the differences between a trading company and a wholesaler?

Unlike a trading company, a wholesaler has in-stock products that he can sell at any time in smaller quantities.

They deliver the next day, meanwhile a trading company will order from a factory and wait 30–60 days to deliver.

Question 6: How to check if trading companies in China are genuine?

It can be a bit challenging to determine if the trading company you want to go into business with is genuine or not.

Most will openly say they are trading companies when asked, while others will say they are factories.

You have to dig deeper in the latter case, asking them what specific products they produce.

However, another ideal way to verify a trading company’s authenticity is to verify its registered capital.

A company with significant capital is perfect because it shows its trading strength.

Another option would be to check the commercial permit. Request these documents and specify a specific scope of business.

You can also choose to check the directory of verified vendors.

In this way, you can easily figure out if the preferred trading company in China is original or not.

You can also check network platforms. In such cases, you can view past customer reviews and read their comments also.

With this you can guess what you might encounter with the trading company.

Question 7: Is it profitable to use trading companies in China?

Not completely, but most cost-effective. It is obvious by considering factors involved that a direct factory business comes with less cost than a trading company.

However, once you get a good company to work with, you will reap the benefits as time goes.

A great trading company will help you ease stress with services such as product sourcing, great customer support, etc.

Also, using trading companies to import from China ensures that you get your goods delivered in a shorter time.

When you have no stock this can be very crucial, allowing you to maximize sales and subsequent profits.

Besides, trading companies can link all their different orders and ship them in one shipment. The advantage is that it reduces logistics costs and thus increases your profits.

If you are importing several products from China then it is most cost-effective using the services of a trading company.

Question 8: What are the Problems with Product Compliance When Purchasing from China Trading Companies?

Suppose you buy a laptop from a China trading company and they give you a test report document. It is obvious that the document won’t have your company name but the name of the manufacturer. That’s a big problem.

U.S. and European authorities require that product SKUs and even the purchase invoice match the test report document.

A test report document with a different factory name doesn’t appear legit for the products you purchased.

For this same reason, Amazon will request for an invoice and compliance documents inclusive.

This essentially implies that you bought the products from a vendor who has a test report already.

Another issue is that trading companies will most likely not test products on behalf of their own company.

Even if, as is often necessary, you test a product under your company name, you still have a problem.

If you know nothing about the manufacturer, how can you assess their capability of making a compatible product?

Thus, retail sellers face a major problem of product execution which becomes much more difficult at best.

Question 9: What are the Cons of Using a Trading Company?

• In case of quality problems or if they find that the factory is doing something unethical (e.g., outsourcing, too much free sharing of intellectual property), they may not inform the company/buyer.

Remember, they are suppliers and only pay if the order is fulfilled.

• They are not employers of critical people in the plant who can make or break the order.

In 98% of cases, they are not the production unit owners. They have little control over what really happens!

When something goes wrong, they may find out late and not steer the project in the right direction.

• They may not be as close to the factories as they say.

If they’re in Shenzhen and want to develop a new cell phone type, that sounds good until you hear that production ends in Guizhou Province. They both send employees there for weeks.

• Like factories, sometimes they see that they will not make a profit and give up.

The more personalized your product is, the more likely you are to drop the ball at some point.

• Their company is attractive if the customer continues to order through it.

However, many customers are tempted to ‘jump in’ right away to the factory and get better prices.

Many traders place production in factories with very little communication.

And, little knowledge of foreign customers’ requirements to avoid this. That often creates problems.

Question 10: Is it better to deal with trading companies in China than with manufacturers?

Ideally, it depends on your specific requirements when importing products from China.

This means that when needs differ, who to work with differ too. So, your goal determines whether you need a trading company or direct product manufacturer.

Take for instance that you need to purchase a bulk specific product, then it’s easier to just go to the manufacturer straight and get it done.

Since it’s a bulk purchase, you’re more likely to get a discount from the factory directly. Certainly, the MOQ plays a vital role in this aspect.

You can also get personalized products by doing business with the manufacturer, which is difficult to obtain from commercial companies.

Besides, manufacturers tend to make better suggestions when it’s best to manufacture larger quantities of a specific product.

Working with trading companies on the other hand is more profitable when your budget is limited.

The thing about these companies is that there is always a way to go around the MOQ to favor you.

It is also a better option when buying various products from different manufacturers.

In that case, you won’t have to bother looking for sorted staples from independent manufacturers.

Also, trading companies’ quality control systems prove to be more effective than that of factories.

Note that commercial companies will most likely understand your special needs better than manufacturers who would just give you what they have already.

Product tailoring for your specific market needs becomes very much easier.

Simply put, your specific needs determine the best option for a trading company or manufacturer in China.

Question 11:How to choose/recognize a Chinese company as a partner?

This is what makes or mar your business. Any company can perform better than the other depending on the aspect. It becomes your duty to figure the best for your company.

Question 12:Do trading companies offer a lower MOQ than factories?

As trading companies usually deliver orders to local factories, they must meet the factories’ MOQ requirements themselves.

If the company requests an order quantity of at least 200 units, the trading company should notify you of the MOQ requirements.

Although there are exceptions, the above doesn’t make purchasing with traditional trading companies any special.

To differ, some trading companies buy shares directly from the manufacturer and sell to customers in smaller quantities and at a higher price.

Question 13: Wondering where to find the best Chinese trading companies?

Collecting data in today’s world is pretty simple, but the main thing is fact-checking which is quite difficult.

There are several methods to reach the best Chinese trading companies.

Fairs: Trade fairs are very often held in major cities of China. Just visit them and meet them one by one.

Magazines, newsletters, and newspapers: most companies advertise through these media. You usually get your contacts and websites.

References: This is a very credible method that requires less resources and is also efficient.

Internet Search: Here, you will find all the companies you are looking for, which is why we have created the Top 20 best trading companies for you to check out.